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Total Insured Value |
A.M. Best defines Total Insured Value (TIV) as your share of property coverages before the application of reinsurance, but net of limits, deductibles, and co-insurance. For example, consider the following sample location:
| Peril | Rep Val Building | Rep Val Contents | Rep Val Time | Limit Building | Limit Contents | Limit Time |
| HU | $1,000,000 | $1,000,000 | $1,000,000 | $500,000 | $500,000 | $500,000 |
| EQ | $250,000 | $250,000 | $250,000 |
In this example, the deductible structure is as follows:
• HU: Coverage percent with Building = 2%, Contents = 3% and Time = 4%
• EQ: Site amount of $50,000
For the hurricane peril, the TIV is $1,455,000, which is equal to the combined limits less the coverage-specific deductibles. For the earthquake peril, the TIV is $700,000, which is equal to the combined limits less the site amount deductible. In both calculations, replacement values are irrelevant because they are not insured exposures.
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© 2020 AIR Worldwide. All rights reserved. Touchstone 7.0 Updated September 03, 2020 |
