Insurable Value
The value of the destructible improvements for insurance purposes — typically replacement or reproduction cost of the structures, excluding land and site value. Insurable value answers "what would it cost to rebuild," not "what would it sell for."
Related Terms
Replacement Cost
The estimated cost to construct a building with equivalent utility to the subject improvements, using current materials, standards, and design, but not necessarily an exact replica..
Reproduction Cost
The estimated cost to construct an exact replica of the subject improvements using the same materials, construction methods, workmanship, and design as of the effective date of the appraisal..
Cost Approach
A valuation method that estimates value by calculating the cost to reproduce or replace the improvements, subtracting accrued depreciation, and adding the land value.
More in Property Characteristics
View allGross Living Area (GLA)
GLAThe total finished, above-grade living area of a residential property, measured in square feet.
Gross Building Area (GBA)
GBAThe total area of a building measured from the exterior walls, including all finished and unfinished, above-grade and below-grade spaces.
Below-Grade Area
Any portion of a building that is below the ground level on any side.
ANSI Z765 Measurement Standards
ANSIThe American National Standards Institute standard for measuring residential floor area.