Statement of Values
A detailed listing of all insured properties with their individual values, locations, and construction details submitted to the insurer for rating.
What It Is
A Statement of Values (SOV) is a comprehensive document listing every insured property location with detailed information including address, building value, business personal property value, business income value, construction type, occupancy, year built, square footage, protective safeguards (sprinkler systems, alarm systems), and any special features or exposures.
The SOV serves as the foundation for property underwriting, rating, and catastrophe modeling. Carriers use SOV data to assess concentration risk, apply location-specific rates, and model potential losses from catastrophic events. Accurate SOV data is essential for obtaining competitive quotes and avoiding mid-term audits or coinsurance issues.
For accounts with blanket coverage or agreed value endorsements, the SOV is typically a policy requirement—the endorsements depend on the insured providing accurate and complete property values. Failure to submit an updated SOV can result in the loss of these valuable endorsements.
Why It Matters for Brokers
The quality of a broker's SOV directly impacts the quality of quotes received from carriers. A well-prepared SOV with accurate values, complete construction details, and current appraisal data demonstrates professionalism and helps underwriters price the risk competitively. Poor SOVs with missing data, stale values, or incomplete information result in conservative pricing, restrictive terms, or declinations.
Real-World Example
A property management company with 22 commercial properties submits two SOVs to market. The first SOV lists only addresses, building values, and construction type. The second SOV includes all of that plus year built, square footage, occupancy type, sprinkler status, roof type and age, updated appraisals, and loss history by location. The first SOV receives 3 quotes averaging $0.42/$100 of value. The second receives 7 quotes averaging $0.31/$100—a 26% premium reduction on a $45M TIV, saving approximately $49,500 annually.
Common Mistakes
- 1Submitting SOVs with missing or incomplete data fields, forcing underwriters to make conservative assumptions that increase pricing.
- 2Not updating SOV values annually, causing drift between insured values and actual replacement costs over multiple renewal cycles.
- 3Using inconsistent valuation methods across locations—some at replacement cost, some at ACV, some at book value—making underwriting analysis unreliable.
How brokerageaudit.com Handles This
brokerageaudit.com's Submission Intake provides a structured SOV template that captures all data fields required by major carriers. The system validates SOV completeness before submission, flagging missing fields and inconsistent values. The platform maintains SOV history, applies inflation adjustments, and generates renewal SOVs pre-populated with prior-year data for broker review and client confirmation.