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 |
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.