ABSTRACT
The valuation of residential property for insurance purposes is simple in theory, somewhat less simple in practice and in both cases can only be understood given a reasonable appreciation of the nature of buildings insurance. It is essential to distinguish between an insurance valuation and a market valuation. The latter is defined by the IVSC as
the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
