The insurable value is the amount required to rebuild a house and improvements in the event of a fire, flood, or other disaster.  The insurable value does not include land.

 

Example:  A 10-year-old house with lot is worth $100,000.  The lot alone is worth $25,000.  It will cost $90,000 to rebuild the house in case of fire.  The market value of the property is $100,000 and the insurable value is $90,000.

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