06/02/2026
The biggest coverage gap in commercial insurance comes from one misunderstanding:
Market Value ≠ Replacement Cost.
Market Value is influenced by:
• Real estate trends
• Location desirability
• Buyer demand
Replacement Cost is influenced by:
• Construction costs
• Labour shortages
• Material pricing
• Building codes
• Supply chain delays
These two numbers rarely match and during a claim, only one matters.
If your building limit is based on market value, you’re likely underinsured.
If your equipment list hasn’t been updated in 12 months, you’re likely underinsured.
If your inventory fluctuates seasonally, you’re likely underinsured.