Who primarily benefits from accurate assessments of fair market value in insurance?

Accurate assessments of fair market value primarily benefit policyholders needing appropriate coverage. This is because the fair market value helps determine the correct amount of coverage needed for an insurance policy, ensuring that policyholders are adequately protected against potential losses. When the valuation is accurate, policyholders can secure policies that reflect the true value of their assets, minimizing the risk of underinsurance or overinsurance.

For instance, if a policyholder owns a home, having an accurate assessment of its fair market value will help them select an insurance policy with a coverage limit that accurately reflects the home's worth. This ensures that in the event of a loss, the policyholder can receive a claim payment that is sufficient to repair or replace the property, thus safeguarding their financial interests.

While insurance agents, companies, and government regulatory agencies may also have interests in fair market assessments, the fundamental goal from the perspective of coverage is ensuring that policyholders are properly protected based on accurate valuations.