The amount of indemnity is determined by the insured property's value at what time?

The amount of indemnity is determined by the insured property's value immediately prior to the loss. This principle ensures that the insured receives compensation equivalent to the actual cash value of the property just before the loss occurred, ensuring fairness in the claims process and preventing overcompensation.

Insurance operates on the principle of indemnity, which is designed to make the insured whole after a loss, without allowing them to profit from the insurance coverage. By valuing the property right before the loss, the insured is compensated based on current market conditions and depreciation, taking into account any changes in value that may have occurred since the inception of the policy or the last renewal.

The other options incorrectly suggest valuing the property based on earlier points in time, such as when it was originally purchased or at the policy inception, which do not reflect the property's current market value. This could lead to significant discrepancies in the amount of indemnity provided, making them unsuitable for determining the amount owed in the event of a loss.