Statement of Values – How Often Should I Complete One?

People get confused when they do their statement of values.  They want to know how often it should get done. Well, the truth of the matter is it should get done on an annual basis, but don’t shoot the messenger.


Will it Always Take This Long?

The first time it’s going to be a little bit of a chore for you to get through this thing.  But that’s okay. You only have to beat that one substantial time. Then, every year after that, you look at what the values are and adjust them as necessary. One of the best ways you can do this is to get a list of assets from your accountant. If you’ve reported everything to your accountant, they should have a list of assets you have; an assets register that they can send to you. And that’s an excellent place for you to start when you’re listing out all of the things you would like to have covered by property insurance.


Do I Really Have to Include Everything?

Now, listen, I am not one of these people who is a massive advocate for insuring every single penny of everything you have. I think it’s okay for you to take a little risk and have some skin in the game. It also helps you control your premium, but I want you to get educated when you do that. The problem with not making a statement of values on an annual basis is that the policy language is pretty clear that the carrier will go back to the last statement of values that you have on record. So if you did one five years ago and your business has grown at 20 to 25% per year, then that five-year-old statement of values will not be accurate. And God forbid you to have a claim. You’re going to end up with a co-insurance penalty more than likely.


Adjust Annually

So take some time and do this right the first time. Then every year after that, you’re just going to go through your line items and make sure that your values are accurate based on the current replacement cost. If you have any questions at all as you go through this process, please reach out. I’m happy to answer questions anytime you have them.


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David Carothers

 Commercical Insuramce

Kyle Houck

Kyle Houck

 Commercial Insurance


Grayson Carothers

 Personal Insurance

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