The term market value is often used commercial property and commercial auto policies. means the value of a piece of property on the open market. It is the amount of money a buyer would be willing to pay to purchase the item. Market value differs from replacement cost, which refers to the cost to replace damaged property or to rebuild it. For example, if the door of a building is damaged, the replacement cost of the door is the cost of a new door that is of the same type and quality as the previous one.
Market value also differs from actual cash value, which is the "book value" of property.
Market value can be difficult to assess if property is unique. Auto insurers typically determine the market value of a damaged auto by looking up its "blue book" value. A homeowners insurer may determine the market value of a home by using "comps", prices of comparable homes that have recently sold in the area.