For example, average
replacement values can be assessed for deviation from industry averages by construction type for a specific geographic area.
It is important to remember, however, that judging
replacement values of stained glass is an incomplete science.
A product designed to gauge home
replacement values has recently been made available to insurers by Simultaneous Solutions.
Frankly, we just don't see many practical obstacles to assigning current
replacement values to the ending inventory.
Another aspect to this issue involves finding authoritative sources to help directors estimate their full
replacement values.
SEG-SITE can be used to determine
replacement values for standard, unusual or complex buildings, Capell says.
The taxpayer supported its argument with expert testimony from a computer vendor that the
replacement values of the VAX 8550 computers were considerably less than the assessed value.
The challenges insurers face in maintaining up-to-date
replacement values are well known in the industry," said Chris Harris, Chief Underwriting Officer at Montpelier Re.
Nine out of 10 commercial properties analyzed by AIR had
replacement values, which is the full cost to replace a building in the event of total loss, less than the amount estimated using a standard engineering-based cost-estimation process, the report stated.
Insurance policies often are based on
replacement values and/or actual cash value.
However, the increased cost is due to the additional insurance that must be purchased for the difference between
replacement values and depreciated values.
In addition, many organizations now require that techniques for de-identifying test data provide valid
replacement values to ensure accurate and reliable test results.
