Assessed Value

The value of commercial property as determined by city hall or a municipal assessor.

A piece of property's assessed value is determined by your city's assessor's office to find out your total property tax obligation. Assessments are usually made citywide and are not recalculated very often (even though your tax rate may change from year to year).

While assessed value is important for tax purposes, this figure doesn't directly affect your insurance. For commercial property, assessed value might be different than appraisal or replacement value. Generally speaking, your property's replacement value is the most important number when it comes to Property Insurance.