Definition:Schedule of values
📋 Schedule of values is a detailed inventory — typically presented as a spreadsheet or data table — that lists every insured location or asset along with its associated values, construction characteristics, occupancy type, and other attributes relevant to property insurance underwriting and rating. In commercial property programs, the schedule of values serves as the foundational data set from which underwriters assess exposure, catastrophe modelers run simulations, and premiums are calculated. Without an accurate and complete schedule, it is virtually impossible to price a risk appropriately or structure adequate reinsurance.
📑 A well-constructed schedule typically includes fields such as street address, building replacement cost, business personal property value, business interruption values, construction type (frame, masonry, fire-resistive), year built, number of stories, square footage, fire and burglar protection details, and sometimes geocoded latitude and longitude for catastrophe modeling purposes. The insured or its broker prepares the schedule and submits it as part of the submission package. Underwriters review it for completeness and consistency — flagging, for example, replacement cost figures that seem implausibly low relative to square footage, which could signal underinsurance. During the policy term, the schedule may be updated via endorsements as locations are acquired, divested, or renovated.
🏗️ Accuracy in the schedule of values has far-reaching consequences. Understated values lead to inadequate coverage and potential coinsurance penalties at the time of a claim, while overstated values inflate premiums unnecessarily. For insurers managing large commercial or industrial portfolios, aggregating schedules across all insureds reveals concentration risk — multiple policies exposed to the same windstorm zone or earthquake fault, for instance. Reinsurers rely on aggregated schedule data to price treaty and facultative placements, and rating agencies examine how well carriers capture and monitor insured values when evaluating underwriting discipline. As data standards improve and insurtech platforms automate ingestion and validation, the schedule of values is evolving from a static document into a dynamic, continuously updated asset register.
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