Definition: For the purpose of taxation, a property is assessed for its monetary worth. This ascertained price is known as assessed value.
Description: This assessment is done at an annual basis, considering factors such as property values and market conditions in the neighboring areas. Governmental agencies like Municipal Corporation conduct this assessment for measuring applicability of property taxes based on the monetary value of the property.
Insurance companies may not use these valuations for indemnification, etc. In general, this assessed value tends to be less than the fair or actual market price of the property.