An insurance to value analysis compares the limit you carry with a verified replacement cost and quantifies the difference, including your coinsurance exposure. Coverage Estimate gives boards a clear ratio, a dollar gap, and the documentation to act on it.
Insurance-to-value (ITV) is the relationship between the amount of insurance on a property and what it would actually cost to rebuild. The insurance-to-value ratio is simply the insured limit divided by verified replacement cost. A ratio of 100% means the limit matches the rebuild cost. A ratio of 75% means one quarter of the rebuild would be unfunded after a total loss, before any coinsurance penalty is considered.
Other Coverage Estimate services establish what the property would cost to rebuild. An insurance-to-value analysis takes the next step: it puts that figure next to your current declarations page and tells you, in plain numbers, whether your association is underinsured and by how much.
Many property policies include a coinsurance clause requiring the insured to carry a limit of at least a stated percentage of the property's value, often 80%, 90%, or 100%. If the limit falls short of that requirement at the time of loss, the claim payment can be reduced in proportion, even on a partial loss well below the limit. The exact formula and whether coinsurance applies at all vary by policy and carrier.
| Hypothetical example | Amount |
|---|---|
| Verified replacement cost | $10,000,000 |
| Coinsurance requirement (90%) | $9,000,000 |
| Limit actually carried | $7,200,000 |
| Partial loss | $1,000,000 |
| Payment before deductible ($7.2M ÷ $9.0M × $1.0M) | $800,000 |
| Shortfall the association absorbs | $200,000 |
In this example the association carries a 72% insurance-to-value ratio and loses $200,000 on a loss it might have assumed was fully covered. That is the exposure an ITV analysis is designed to surface before renewal, not after a claim.
At intake we collect your current declarations page and policy schedule alongside the usual property information. If you do not have a current, verified replacement cost, the engagement follows our full process of site inspection and cost analysis to establish one. The comparison is then laid out in the final report. See How It Works for each step.
An ITV analysis depends on a reliable replacement cost, so it naturally pairs with a condominium insurance appraisal or a replacement cost evaluation. For multi-building policies, a master policy valuation supplies the per-building values needed for a building-level ratio. If the analysis shows a gap and you want help presenting it at renewal, insurance valuation consulting picks up from there.
Send your declarations page and property details. We respond within 1 business day.
Request a QuoteStart with a limit that matched replacement cost on day one, then compare a fixed annual increase to construction cost growth. Hypothetical rates only; your actual figures will differ.
Illustration only. Compounds both rates from a starting point where the limit equaled replacement cost. It is not an estimate of your property's value; an ITV analysis uses a verified replacement cost.
