Our insurance appraisal report will provide you with a reliable replacement cost estimate for insurance coverage purposes.
Definition:
An insurance appraisal is a current replacement cost estimate of the insurable physical assets of a property. Assets typically included are buildings, structures and site improvements (eg. swimming pools, decks, fencing). An insurance appraisal is completely different than a typical real estate appraisal. A typical real estate appraisal estimates the market value of an entire property whereas an insurance appraisal estimates the replacement cost of the insurable asset. Land values and market conditions are not relevant in an insurance appraisal.
Estimating Insurance Value:
There are different methods used by appraisers in estimating insurance values, although the basic method is the same. We use the Segregated Cost Method to estimate the insurable value of buildings, structures and site improvements.
The Segregated Cost Method allows the appraiser to give separate consideration to all major construction assemblies or systems of a building or structure. This method requires the appraiser to have a sound knowledge of building construction techniques and overall cost relationships between occupancies, building classes and quality levels. Further, the appraiser must have an understanding of basic differences in materials and workmanship, and their effect on value.
The Process:
All insurance appraisals begin with a detailed inspection of the building. Assets to be appraised are identified and the major construction assemblies are determined for each. Buildings are measured and photographed. In preparing the report, building plans, if available, are perused, building areas are calculated, non-insurable items are identified and excluded, asset profiles are described and insurable costs are calculated.
Types of Insurance Value Appraisals
- First Time: a complete appraisal is required involving all steps as described herein.
- Update Appraisal: for existing clients with properties that are unchanged, an update appraisal can be provided reflecting the latest insurable values
- Property Change: for an existing client with a property that has been renovated and/or expanded.
