Dech
There is a concept in insurance called coinsurance.
Basically it says that if you take out insurance that for less than the full event insurance value, the insurance company says you are co insuring. Ie you are taking on part of the insurance risk yourself.
So lets say your OC insures your block for only 50% of its full value, believeing that the chance ofa total building loss is 50%.
Lets say that your lot burns to the ground, but no other log is affected. The insurance company will say you coinsured the event to the tune of 50%, so even though the total sum insured is greater than the loss of your jnit, wwill only pay 50% of the assesed loss.Nloss.
Now do you want only 50% of yourlot yo be rebuilt?
The point of tne valuation everh few years is to ensure that the inrured value of your building is close to uts real replacement cost. ( the insurance companies allow some lee way in the sume insured before applying the coinsured rule)