Which is true about a competitive market analysis?

While property values can impact insurance assessments, a competitive market analysis is primarily focused on determining fair market value rather than insurance needs. Insurance evaluations typically rely on different criteria, such as replacement costs or risk assessments, rather than the comparative data used in a CMA.

Depreciable value pertains to the reduction in worth of an asset over time for accounting purposes, which is not the focus of a CMA. Instead, a CMA concentrates on current market conditions and comparable property sales to assess market value, rather than depreciation metrics.

Local tax assessments often reflect assessed values that may differ from market values determined through a CMA. A CMA uses recent sales data and market trends rather than relying solely on tax assessments, which can lag behind real market conditions and may not accurately represent current property values.