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Valuation

The process of determining the value of property for insurance purposes.

Detailed Explanation

Proper valuation ensures adequate coverage for your home and possessions. Dwelling valuation should reflect rebuilding costs, not market value or purchase price. Personal property can be valued at actual cash value or replacement cost.

Practical Example

After renovating and expanding her kitchen, Sarah requested a new valuation of her home, resulting in an increase in her dwelling coverage from $250,000 to $285,000 to reflect the added value and higher rebuilding cost.

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