Property Valuation For Insurance

Property Valuation For Insurance

If you plan to insure your property, when negotiating with an insurance company you may need to conclude on the insurance value of the property to agree on the volume of insurance payments.

When concluding a property insurance contract, it is important to correctly assess its insurance value. So, in the Civil Code of the Russian Federation (Article 947, paragraph 2) it is established that the sum insured must not exceed the real value of the property on the date of concluding the property insurance contract. In the case of a real estate insurance contract for a large amount, the contract is void in terms of exceeding the insured amount over the market value, and the excessively paid insurance premium is not returned to the insured. Thus, when concluding an insurance contract for property and determining its insurable value, the parties must proceed solely from the actual (market) value of the property.

Perhaps the insurance company will invite its appraiser, but a one-sided evaluation may not always be objective, so it is advisable to resort to the services of a third-party appraiser. It should be noted that the importance of having a report on the appraisal of insured property also consists in the fact that the independent expert appraisal, categorically, does not allow the insurer to subsequently challenge the insured amount under the contract, since Article 948 of the Civil Code expressly prohibits: “The insurable value of property specified in the contract insurance, cannot be subsequently challenged, except for the case when the insurer who did not use his right to assess the insured risk before the conclusion of the contract was deliberately introduced misleading with respect to this value. “

Thus, before insuring your property, it is better to make an independent assessment of its insured value. The conclusion on insurance value is issued by a specialized appraiser in the form of a Property Valuation Report that contains detailed information about the property being valued, its location, surroundings, the methodology for assessing the value of property, and performing calculations in accordance with federal and international standards for valuation. This Property Valuation Report becomes an official document and is provided to the insurance company.

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Valuation of property is one of the directions of professional activity of our Company.

The professional real estate appraisers working in our Company know the requirements of insurance companies, as well as all the “pitfalls” of compiling insurance assessment reports. Thanks to this, our clients in the vast majority successfully solve emerging issues related to property insurance.

In the event of an insured event, our Company will assess the damage to the insured property.


The letter considers the following situation. The parent company took property from the liquidated subsidiary that remained after settlement with creditors. Since Chapter 25 of the Tax Code does not contain provisions establishing the procedure for determining the value of fixed assets and materials received during the liquidation of an organization and the distribution of its property, the company has the following issues: 1) whether it is possible to take the specified property to tax accounting at its residual value as of the date of receipt on the basis of the data of the liquidated organization; 2) if the residual value is less than 100,000 rubles. Is it possible to recognize the received property as non-depreciable and include its value in the material costs? Position of the Ministry of Finance of Russia The opinion of the financial department on how much property should be taken into account in the tax account, the property that was left to the founder when the organization was liquidated, was repeatedly changed. So, in a letter dated 24.06.2008 No. 03-03-06 / 1/367, the financiers explained that the value of such property cannot be determined as the amount of expenses incurred when acquiring a stake in the authorized capital of the liquidated organization, since these expenses are not taken into account for the purposes taxation of profits on the basis of clause 3 of Art. 270 of the Tax Code. In addition, the founder has no expenses for the acquisition of this property, which could be taken into account when forming its value in accordance with the provisions of cl. 254, item 1 of Art. 257 or the sub. 2 p. 1 of Art. 268 of the Tax Code