How do we do the property valuation for home insurance?

[Puneet Sood]

How do we do the property valuation for home insurance?

[Shinoy Chenatra]

Property valuation is done by multiplying the built up area of the property with the cost of construction per square feet.

Currently the cost of construction is taken around 1500 to 2000 depending on the location of the property and type of construction.

[Arti · Accepted solution]

There are different methods to determine property value for the insurance purpose. Particularly, the property might be valued on the basis of its balanced cost. Often, an insurance valuation is based on actual cash value (ACV), because it reflects the real value of the insured property.