What Should a Statement of Values Include for Texas Properties?

What Is a Statement of Values, and Why Does It Matter So Much?

A statement of values (SOV) is a spreadsheet that lists each building you want insured and what it is worth. Some lenders and insurers call it a schedule of values. It is usually the single most important document in your property underwriting submission, because underwriters build your price and terms from it.

Freddie Mac describes a schedule of values as a list of every insurable value given to an insurer for all the properties under a policy (Freddie Mac). Those values add up to your total insured value (TIV): buildings, contents and income together.

The SOV does more than set a premium. On many programs it also sets how much you can collect and how much you pay first:

• Limits. Many owners carry a blanket limit sized from the SOV total. A margin clause can then cap each building near the value you listed for it.
• Deductibles. Texas wind, hail and named storm deductibles are often a percentage of each building's listed value.
• Coinsurance. If a limit is based on a value that is too low, a coinsurance clause can shrink partial claims.
• Lender review. Agency lenders review the SOV and how values cluster geographically before they accept a blanket policy (Fannie Mae).

So the SOV is not a form to fill in the night before renewal. It is a working record of your properties, and it deserves the same care as a rent roll.

What Columns Should Your Statement of Values Include?

Include one row per building, not one row per property, and enough detail that an underwriter never has to guess. Most insurers accept your own spreadsheet if it covers the fields below. Some ask you to move the data into their template.

Add a lender column if your properties carry different loans, and a flood zone column if any building is near water. Both make the lender and flood sections of your program easier to build.

What Is COPE, and How Do Underwriters Use It?

COPE stands for construction, occupancy, protection and exposure. It is how an underwriter sorts a building's fire and weather risk before looking at the dollars. Clear COPE data can mean fewer follow-up questions.

Construction

Insurers group buildings into six standard construction classes by how well the frame resists fire. The Texas State Office of Risk Management publishes a plain chart that matches each class to building code types (Texas SORM).

List the class for each building, not one class for the whole property. A wood-framed addition on a masonry building, or metal siding on wood framing, can change the class. When you are unsure, say so, and ask for an inspection rather than guessing.

Occupancy, Protection and Exposure

• Occupancy. Name the actual uses. A restaurant, a dry cleaner or a medical tenant changes the hazard in a strip center. For apartments and hotels, list units or rooms.
• Protection. Note the share of each building that is sprinklered, any central station alarm, and the community's Public Protection Classification. Verisk rates community fire protection from Class 1, the strongest, to Class 10 (Verisk).
• Exposure. Note what is next door, such as a vacant building or a busy restaurant, plus hail, wind, flood and wildfire exposure. The Texas section below covers the weather columns.

Why Do Roof Age and Building Updates Get Their Own Columns?

Because in Texas, the roof often decides the hail and wind terms. Underwriters want each roof's covering type and the year it was installed or fully replaced. A building built in 1985 with a 2023 roof is a very different hail risk from one with its original roof.

Roof age can affect whether an insurer offers the building, the deductible, and whether roof damage is paid at replacement cost or at actual cash value. Some policies use a roof surfacing payment schedule that pays a smaller share as the roof ages. Lenders notice too. Freddie Mac requires replacement cost property coverage but allows roof coverings to be written at actual cash value (Freddie Mac).

• Record the roof covering, such as single-ply membrane, built-up, metal or shingle.
• Record the year each roof section was replaced, with the invoice or permit.
• Add the years wiring, plumbing, HVAC and fire alarm systems were updated.
• Note any roof sections that are original, recoated only or due for replacement.

Our replacement cost vs. actual cash value guide explains how roof settlement terms work on a claim.

How Are Building Values Usually Set?

Building values on an SOV are usually based on what it would cost to rebuild each building today with similar materials and quality. That is its replacement cost. It is usually different from what you paid, the market value or the tax appraisal, and it generally excludes land. Your policy's valuation wording controls.

Both agency lenders use the same idea. Fannie Mae and Freddie Mac define insurable value as the most it would cost to replace, repair or reproduce the property, excluding land. They name four common sources for the estimate: the insurer's own estimate, a qualified appraiser, an experienced local contractor, or a vendor that specializes in these calculations (Fannie Mae; Freddie Mac).

Trending Values Between Appraisals

Costs move every year. A federal index of material costs for new nonresidential construction rose about 58% from February 2020 to September 2026, and about 12% in the 12 months to September 2026, as retrieved on October 26, 2026; recent months are preliminary (BLS via FRED). That index is national and leaves out labor, so it isn't your building's number. It does show how fast a value can fall behind.

What Happens If Your Values Are Too Low?

If your statement of values is too low, you can collect less than you lose, even on a partial claim. Understated values usually cause trouble in three ways: a coinsurance penalty, a margin clause cap, and limits that run short in a total loss.

Many property policies have a coinsurance clause, typically 80%, 90% or 100% of value. If your limit is below that share of the value at the time of loss, partial losses are cut in the same proportion (Freddie Mac). Our coinsurance guide walks through the formula.

On a blanket program that has a margin clause, that clause typically caps what any one building can collect at a set percentage of its listed value, such as 110% or 125% (IRMI). Fannie Mae's guide notes that a margin clause should not be used to show a compliant limit (Fannie Mae).

Agreed Value and Lender Minimums

Agreed value suspends the coinsurance clause until a stated expiration date when you insure to values the insurer accepts (Freddie Mac). Insurers often ask for a current statement of values to support it. Agreed value doesn't raise your limit, and how it works with a blanket limit or margin clause depends on your policy wording.

Agency lenders set their own floor. As we read their guides on October 26, 2026, Fannie Mae and Freddie Mac require property coverage of at least 100% of insurable value for a single-building property and 90% for a multi-building property. The policy must have no coinsurance clause, or one offset by an agreed amount of at least 100% of insurable value (Fannie Mae; Freddie Mac). Your loan documents control your own minimums.

How Do You Fill in Contents, Business Income and Rents?

List contents and income separately from the building. Business personal property is what you own inside: furniture, appliances, equipment, supplies and inventory. For landlords, it may be modest, such as leasing office furniture, pool furniture and maintenance equipment. For hotels and owner-occupied buildings, it can be large.

Your business income or loss of rents column sets the limit that replaces lost income while a building is repaired. Many owners start with 12 months, which is also what many lenders ask for. Whether that is long enough depends on how long a rebuild could take, including permits, design and lease-up.

Business Income Worksheet Basics

A business income worksheet is the standard way to support the number. The ISO form, CP 15 15, uses actual figures from the past year and estimates for the coming policy year. The coinsurance test for business income is based on the estimates (FC&S).

1. Start with total revenue: rents, other property income and tenant charges you collect.
2. Subtract costs that would stop after a loss, as the worksheet allows.
3. The result is roughly net income plus continuing expenses for 12 months.
4. Adjust for a rebuild longer than 12 months, or rents rising at renewal.
5. Have your controller or accountant check the figures before you sign.

Lenders often state what they will accept. Fannie Mae and Freddie Mac accept actual loss sustained for 12 months, 12 months of effective gross income, or net operating income plus continuing expenses. Freddie Mac asks for a completed worksheet with that last option. For agency loans of $35 million or more, both require a 90-day extended period of indemnity (Fannie Mae; Freddie Mac).

What Texas Risks Should Your SOV Show?

Texas underwriters look hard at hail, wind, flood and freeze. Your SOV should answer their questions about each building before they ask. The dollar values matter, but so do the location and protection columns.

Each column connects to a real policy term. The roof can shape hail terms. Coastal location can mean wind written through the Texas Windstorm Insurance Association (TWIA) or a separate wind policy. The flood zone affects lender requirements, and freeze protection affects how an underwriter views water damage.

TDI's winter storm report put the average incurred commercial property loss from Uri at about $149,100, as of March 2022. Showing the steps you took since then, such as monitored low-temperature sensors, can help an underwriter see the building as it is now.

For more, see our guides on hail claims, TWIA windstorm coverage and commercial flood insurance, or our Texas property risk page. For coastal programs, our named-storm strategy guide shows how wind, deductibles and flood stack.

How Do You Keep the SOV Current as You Buy and Sell?

Treat the SOV as a living file, not a renewal chore. Update it whenever you buy, sell, renovate or change how a building is used. Then send the change to your agent so the policy and the spreadsheet stay in step.

Don't rely on automatic coverage for purchases. The standard newly acquired property extension in the ISO building form is up to $250,000 per building and lasts no more than 30 days or until the policy ends (IRMI). Some programs offer more, but adding the building before closing is the safer path.

1. Before you close on a purchase, add a full SOV row with COPE details, roof, values and rents, and get the new lender's insurance requirements.
2. When you sell, tell your agent the expected closing date, and confirm with your attorney or title company when property and liability coverage on that building can end.
3. After a renovation or new roof, update the building value, roof year and system updates.
4. When a building empties out, flag the occupancy change, because the vacancy clause can limit coverage.
5. At each renewal, trend or refresh every value, and save a dated copy with the source of each number.

Reconcile the SOV with each lender's schedule at least once a year. When a lender's file shows a different address, entity or value, it can delay evidence of insurance and closings.

Our portfolio insurance guide covers blanket limits, renewal dates and entity names across many properties.

What Should a Complete Underwriting Submission Include?

The SOV is the center of the package, but underwriters need context around it. A complete submission usually lets an underwriter quote with fewer questions and fewer assumptions. Many owners of larger and multi-location properties start gathering it several months before renewal.

1. The statement of values, one row per building, with valuation sources and dates.
2. Loss runs, usually the last five years for every property, with a short note on large or repeat claims and what was fixed.
3. Rent rolls or occupancy reports, including any building that is empty or mostly empty.
4. Each lender's insurance requirements, for limits, deductibles, rents and wording.
5. Current policies and declarations pages, with renewal dates and current deductibles.
6. Roof and system records, such as invoices, permits and roof inspection reports.
7. Protection records, such as sprinkler and alarm inspection reports and central station certificates.
8. Coastal and flood documents, such as WPI-8 certificates, elevation certificates and current flood policies.
9. A business income worksheet or rent summary supporting the income column.
10. Recent loss control reports and how you answered their recommendations.
11. A short narrative on who manages the properties, recent upgrades and planned purchases or sales.

What Should You Do Next?

Start with the spreadsheet you already have, and test it against this guide one column at a time. Many spreadsheets need a few additions the first time through.

1. Split any property with several buildings into one row per building.
2. Fill in construction class, occupancy, sprinklers and alarms for each building.
3. Add roof type, roof year and system update years.
4. Confirm each building value is a current rebuilding cost, and note its source and date.
5. Check the rents or income column against your latest financials and lender rules.
6. Add flood zone, coastal county and WPI-8 status where they apply.
7. Recalculate percentage deductibles at the updated values.

When you're ready, send us your current SOV and declarations pages and we'll walk through it with you. You can also read how we work or see our commercial real estate portfolios page.

Questions Owners Ask

Sources

1. Freddie Mac Multifamily Seller/Servicer Guide, Chapter 31: Insurance Requirements — Guide Bulletin Update 10/20/26. 31.1 definitions (agreed amount, coinsurance typically 80/90/100%, insurable value excludes land and its sources, schedule of values, TIV); 31.3 blanket analysis of the statement of values; 31.5 replacement cost, roof coverings may be ACV, 100%/90% of insurable value; 31.6 rents 12 months ALS, EGI or NOI plus continuing expenses with worksheet; 90-day extended period for UPB $35M+
2. Fannie Mae Multifamily Guide, Part II, Chapter 5, Section 501: Property Insurance — 501.01B insurable value (excludes land) and reliable sources; 501.01C blanket policies and schedule of values review; 501.02A 100%/90% minimums, coinsurance offset by agreed amount, margin clause guidance; 501.02D business income 12 months and 90-day EPI for UPB $35M+ (checked October 26, 2026)
3. IRMI: Margin Clause (definition) — Caps recovery at a percentage of the value reported for a location, such as 110% or 125%
4. IRMI: Additions and Extensions of Property Coverage: Not an Alternative to Exposure Identification — Newly acquired or constructed buildings: $250,000 per building, no longer than 30 days or policy expiration
5. FC&S (PropertyCasualty360): The Business Income Worksheet Step by Step — ISO CP 15 15 10 12: prior-year actuals and coming-year estimates; coinsurance calculated from the estimates
6. Texas State Office of Risk Management: Construction and Occupancy Classification — ISO construction classes 1 to 6 matched to IBC construction types
7. Verisk: Public Protection Classification (PPC) program FAQ — PPC is a 1-to-10 rating; Class 1 is the strongest community fire protection
8. U.S. Bureau of Labor Statistics via FRED: PPI, Net Inputs to New Nonresidential Construction (WPUIP231200) — Index 109.4 (Feb 2020), 154.840 (Sep 2025), 173.212 (Sep 2026, preliminary); excludes labor (retrieved October 26, 2026)
9. Insurance Information Institute: Facts + Statistics: Hail — Texas ranked first with 902 major hail events (1 inch or larger) in 2025, NOAA data
10. Texas Department of Insurance: February 2021 Winter Weather Event Data Call (data as of March 31, 2022) — Feb 11 to 19, 2021; commercial property about 10% of claims and 53% of case-incurred losses; average about $149,100
11. TWIA: Where is the coverage area/designated catastrophe area? — 14 first-tier coastal counties plus parts of Harris County
12. FEMA: Special Flood Hazard Area (glossary) — High-risk zones A and V variants; the area where mandatory flood insurance purchase applies