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📄 '''Statement of values''' is a detailed schedule submitted by a [[Definition:Policyholder | policyholder]] — or compiled by a [[Definition:Broker | broker]] on the policyholder's behalf — that lists insured property assets along with their locations, descriptions, and declared monetary values. In [[Definition:Commercial property insurance | commercial property insurance]], the SOV is the foundational document that [[Definition:Underwriter | underwriters]] use to evaluate the risk they are being asked to accept, set appropriate [[Definition:Premium | premiums]], and structure coverage terms. It typically includes building values, contents and inventory values, business income exposures, and relevant construction and occupancy details for each location.

⚙️ Once an underwriter receives the statement of values, they cross-reference the reported data against [[Definition:Catastrophe model | catastrophe models]], [[Definition:Property valuation | property valuation]] benchmarks, and their own portfolio [[Definition:Aggregation | aggregation]] limits to determine how much [[Definition:Capacity | capacity]] they can deploy and at what price. A well-prepared SOV enables accurate [[Definition:Risk assessment | risk assessment]] because it captures granular detail — square footage, construction type, [[Definition:Fire protection | fire protection]] class, and proximity to flood zones or earthquake faults — that generic summaries would miss. In large [[Definition:Commercial insurance | commercial]] or [[Definition:Industrial insurance | industrial]] accounts with dozens or hundreds of locations, the SOV may run to thousands of line items and is frequently exchanged in standardized spreadsheet formats that align with the data requirements of [[Definition:Reinsurance | reinsurance]] placements and cat modeling platforms.

💡 Accuracy in a statement of values directly influences the quality of coverage a policyholder receives. Understated values lead to [[Definition:Coinsurance | coinsurance]] penalties or inadequate [[Definition:Policy limit | policy limits]] at the time of a [[Definition:Loss | loss]], while overstated values inflate premiums unnecessarily. For [[Definition:Insurance carrier | carriers]] and [[Definition:Reinsurer | reinsurers]], aggregated SOV data across a book of business is essential for managing [[Definition:Concentration risk | concentration risk]] and purchasing appropriate [[Definition:Catastrophe reinsurance | catastrophe reinsurance]] protection. The growing use of [[Definition:Geospatial analytics | geospatial analytics]] and automated valuation tools in [[Definition:Insurtech | insurtech]] is making it easier to validate and enrich SOV data, reducing the manual effort and error rates that have historically plagued this cornerstone of property underwriting.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Commercial property insurance]]
* [[Definition:Catastrophe model]]
* [[Definition:Coinsurance]]
* [[Definition:Underwriting]]
* [[Definition:Concentration risk]]
* [[Definition:Property valuation]]
{{Div col end}}

Definition:Statement of values - Revision history

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