Property Valuation

In South Dakota, the term 'insurable value' refers to:

AThe market value of the property
BThe cost to replace the physical improvements (buildings) without land value✓ Correct
CThe amount for which the property is insured
DThe assessed value for property tax purposes

Explanation

Insurable value is the cost to replace the physical improvements (structures) in the event of a total loss, excluding land (which is not insurable). It differs from market value, which includes both land and improvements.

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