The Importance Of A Current Insurance Valuation

Just like a home is the biggest asset for most individuals, a commercial property is the most significant asset for a business. Of course, the value of a commercial property constantly changes based on the market, the economy, and a range of different factors.

Many established businesses had an insurance valuation when they first purchased the property. This valuation was based on the cost of rebuilding or replacing the business at the time of the initial purchase and the valuation process. If that purchase and valuation are more than five to ten years old, it is not likely to be accurate given today’s commercial real market and economic conditions.

The Purpose

Requesting an insurance valuation is more than just having peace of mind you are correctly insured. It is the single most effective way to protect your business in the event of a catastrophic event that destroys the building or if there is damage that occurs and you can longer operate out of that facility.

Not only is it important to know the value of the building, but there is also the consideration of equipment, assets, and inventory. In some cases, a business owner may also want to carry additional insurance for seasonal inventory or for building ordinance law coverage. This ensures new construction upgrades to maintain compliance with local codes are covered.

A Current Valuation

In addition to the number of years of owning the business, it is a good idea to request an insurance valuation if you have added on to the business or changed its purpose. This ensures you have the coverage needed in the event you need to rebuild.

B. Riley Financial offers insurance valuation for companies of all sizes and across all industries. To find out more, see us at

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