Market Price Or Market Value

The price at which a object can be bought or sold at any particular time. The market value of a house is often quite different from the cost of reconstructing or rebuilding that house. The same can be said for commercial buildings - depending on where the building is located there can be a large difference in market values.

It is important that you have an accurate reconstruction value on your property in case of a loss. This is your obligation - you can provide an appraisal to your agent or broker but for many of the insurance companies further documents might still be required to secure a guaranteed replacement cost.

Talk your particular situation over with your broker. At no time is it a pleasant experience finding out that you are under-insured and do not have the adequate funds to rebuild after a claim. Ask the questions and get the answers. Take control of your insurance and do not be afraid to ask for help. Your business is not insurance so you cannot be expected to know all the ins and outs.