Insurable Value

The cost of total replacement of destructible improvements to a property; may be based on replacement cost rather than market value.

The cost of total replacement of destructible improvements to a property.
Example: Although the market value of the home was $250,000, its insurable value was $200,000, based on an allocation of $50,000 to the land and replacement costs of $200,000 for the structure and other man-made improvements.