Property Valuation
What is 'insurable value' in Rhode Island?
AThe market value of a property
BThe value of a property for insurance purposes, typically focused on the cost to replace the improvements✓ Correct
CThe assessed value for property taxes
DThe value determined by the Rhode Island Insurance Division
Explanation
Insurable value is the value used for property insurance purposes—typically the replacement cost of the improvements (buildings) to rebuild them if destroyed. Land is typically not included in insurable value because land is not destroyed in most loss events.
Related Rhode Island Property Valuation Questions
- An appraiser performing a drive-by appraisal (exterior-only inspection) for a Rhode Island property must note this limitation in the appraisal report as a(n):
- In Rhode Island, what is 'depreciation' in the context of the cost approach to appraisal?
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