Know Your Value. Does Your Statement of Values Cover You?


When it comes to your commercial or business insurance policy, your value is only as good as your Statement of Values. If you don’t have an accurate and up to date Statement of Values, you could be underinsured and putting your business at risk, or overinsured and wasting money.  A statement of values is an important way to protect your assets – it ensures that you will be reimbursed fully if the worst should happen. Staying up to date with your valuation document and having this on file is vital for businesses, particularly those growing rapidly through acquisitions or changes in property value. If a current statement of values isn’t present when making claims against your policy, the carrier may default back to using the most recent version they have at hand, resulting in you falling short of being appropriately recompensed due to lack of adequate coverage provided by outdated valuations.


A Statement of Values (SOV) is a report given to an insurer that outlines the following:

  • What is being insured?
  • How much is it worth?
  • How was the value determined?

The SOV should identify the property or items being insured, such as buildings, equipment, and inventory. List the value of each individual item. Include the method for how the value was determined, such as actual cash value, replacement cost, or appraisal.


Having an accurate and up-to-date SOV will ensure your business is covered properly in the event of a loss. To avoid being over insured or underinsured, make sure your SOV is accurate and current. If you are overinsured, you may be paying unnecessarily high premiums. If you’re underinsured, you may not have enough to cover damages during a loss. Even if you started with a comprehensive SOV, it is important to update it regularly to reflect increased values or additions to assets.


Being Underinsured

This can happen if you do not regularly and correctly update your SOV. The value of your assets can increase over time and if your policy doesn’t adjust accordingly, you’re at risk of not having enough insurance to cover losses.

Being Overinsured

Most often this occurs if you overestimate the value of your assets, but it can also occur if you divest assets and don’t update your SOV. In either case, you may be purchasing more insurance than necessary and negatively impacting your bottom line.


Incorrect information on your SOV can lead to delayed, disputed, or denied claims.

Missed Savings Opportunities

Updating your SOV regularly can help you identify opportunities to adjust coverage levels and take advantage of potential saving.


Although completing a thorough SOV might seem overwhelming, it is essential and not doing it can cost your business significantly. The good news is that you don’t need to tackle it alone. Start by downloading the MIG SOV template below, or contact us and we will customize a complimentary SOV template for your company and provide you with the guidance on how to complete it.

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Are you ready to save time, aggravation, and money? The team at Muir Insurance Group is here and ready to make the process as painless as possible. We look forward to meeting you!

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