Schedule of Values

The schedule of values is a foundational document in any apartment insurance program that covers multiple buildings or locations. It serves as the underwriting blueprint, listing every insured structure with its address, year built, construction type (frame, joisted masonry, non-combustible, fire-resistive, or modified fire-resistive), number of units, square footage, number of stories, and replacement cost value. The SOV is attached to the policy declarations and determines how the total insured value is distributed across the portfolio.

For apartment owners with multiple properties, the SOV determines whether coverage is provided on a scheduled or blanket basis. Under scheduled coverage, each building has its own specific limit, and a loss at one location cannot draw on the limits assigned to other locations. Under blanket coverage, a single limit applies across all scheduled locations, providing flexibility if one building's loss exceeds its individual value. Blanket coverage is generally preferred for apartment portfolios because it eliminates the risk that a single building is underinsured relative to its scheduled amount.

Maintaining an accurate SOV is an ongoing responsibility. When buildings are acquired, sold, renovated, or demolished, the SOV must be updated. When construction costs rise, the replacement cost values on the SOV must be adjusted. Many apartment owners update their SOV annually at renewal but fail to make mid-term updates when properties are added or materially improved. This practice creates coverage gaps. Most policies include a provision for automatic coverage of newly acquired property, but this coverage is temporary (typically 30 to 90 days) and limited in amount. Apartment owners should establish a process for promptly reporting SOV changes to their insurance advisor.