Insurance Appraisals

 

Appraisals obtained for establishing the loss risk in case of fire, wind, earthquake, or other covered causes, are often limited to providing an estimate of the replacement or reproduction cost of the improvements.

• The insurable value may not be representative of market value and usually does not include the value of the land.

• Insurance agents may order appraisals when their standard cost service manuals are not adaptable to an atypical home or structure.

• Property owners may order appraisals to contest the annual appreciation increases mandated by some insurance companies, especially when the increase in the insurance coverage results in an unrealistic premium.

• Insurance appraisals are calculated on a Replacement Cost New Basis which assesses the cost of rebuilding the property with additional appropriate adjustments for landscaping and services.