Statement of Values in Texas
A statement of values (SOV) is a schedule submitted to an insurer that identifies property by location and category and records the values reported for insurance purposes.
Definition
In commercial property insurance, the statement of values supplies itemized exposure data: information about property and financial interests subject to loss. It supports underwriting, rating, and the allocation of reported values across locations. A listed value is distinct from a policy limit unless the contract connects the two.
Structural Components
- Location and item identification: Addresses, premises or building numbers, and descriptions distinguishing the scheduled property.
- Value categories: Buildings, business personal property, stock, and property of others; some formats also record business income or rental income.
- Valuation basis: Replacement cost, actual cash value, or another specified basis for the corresponding property.
- Reporting reference: Applicable dates, insured identification, and any required certification or signature.
- Supporting attributes: Occupancy, construction, protection, or other property details required by the insurer.
Parameters & Conditions
Required detail depends on the form and insurance arrangement. Totals do not replace separate building or contents values when those values are required for rating or a policy provision.
Values correspond to a stated valuation basis and reporting date. Changes in property, inventory, reconstruction costs, or operations can make previously reported amounts outdated.
If a margin clause or other limitation refers to the statement, specified reported values can affect maximum recovery. Such a clause may restrict payment even when the policy has a larger blanket limit covering multiple items or locations.
Topic Relationships
- Commercial Property Insurance: The coverage context in which property locations and values are reported.
- Underwriting: Risk evaluation that uses the reported property information and values.
- Insurance Limits: Contractual coverage amounts that are distinct from reported values.
- Declarations Page: Policy information identifying coverages and limits, with possible references to property schedules.
- Replacement Cost Value (RCV): A valuation basis that may apply to reported property values.
- Actual Cash Value (ACV): An alternative valuation basis that may apply to designated property.
- Coinsurance: A condition relating the amount of insurance carried to the value required by the policy.
- Business Interruption Insurance: Coverage for income exposures that may be separately recorded in the schedule.
- Loss Settlement Provision: Terms governing the valuation and payment of a covered loss.
Exceptions, Limitations & Boundaries
- Coverage status: Listing property does not independently establish covered causes of loss or amend the policy.
- Settlement amounts: Reported values are not automatic payments; valuation provisions, deductibles, limits, and other terms remain relevant.
- Contractual role: The statement may be incorporated into or referenced by a policy. Its contractual effect depends on that wording.
- Valuation evidence: The schedule records values but does not by itself establish that an independent appraisal was performed.