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Property & casualty
Insurance-to-value (ITV) is the ratio between a property's coverage limit and its full replacement cost. Many property policies require coverage of at least a stated percentage of replacement cost, commonly 80%, to settle partial losses on a full replacement cost basis; carrying less can reduce what a claim pays.
ITV matters for both personal and commercial property. On a commercial building, the coinsurance clause can cut a claim proportionally when the limit is too low; on a home, falling below the threshold can change the settlement basis. Carriers also watch ITV closely across their books because underinsurance means inadequate premium.
A property coverage calculator built for agencies is built and awaiting release. Until it is released, producers can bring ITV into the conversation by asking when the dwelling limit was last checked against current rebuild costs.
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