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Insurance Appraisal

What is an insurance value appraisal?

An insurance value appraisal is a current reproduction cost estimate of the insurable physical assets of a property. These assets typically include buildings, structures and site improvements (pools, tennis courts, etc.) as well as contents and equipment. Click Here to view a Sample Insurance Appraisal Report

Is that the same as a real estate appraisal?

No, it is a completely different type of appraisal.  A typical real estate appraisal determines market value based on comparables.  An insurance value appraisal estimates the current reproduction or replacement costs of the insurable asset.  Or in other words, an insurance value appraisal determines what it would cost to replace or rebuild the insurable asset.  Land values and market conditions are not part of an insurance value appraisal.   Real estate appraisals are used for buying and selling while an insurance value appraisal is for determining insurance coverage amounts.

How do you determine the insurable value?

The basic process is the same for all insurance value appraisals but there are a couple of different methods used by appraisers. For determining the insurable value of buildings, structures and site improvements we use what is called the Segregated Cost Method.

The Segregated Cost Method enables the appraiser to give separate consideration to all of the major construction assemblies or systems (groups of components) of a building or structure. This method requires a greater degree of understanding of both building construction techniques and the overall cost relationships between occupancies, classes and quality levels, as well as the basic differences resulting from quantity, material grade or workmanship affecting each component.

What is involved in an insurance value appraisal?

  • All insurance value appraisals begin with an inspection of the property. When we first arrive on-site to start the inspection, we typically will meet with a property manager or an authorized representative for the property to review specific details and discuss any related concerns.

  • After the meeting we will begin the inspection, where we will first identify all of the buildings, structures and improvements to be included, and then determine the major construction assemblies or systems for each.

  • We will then photograph, measure and quantify the assets as needed.
  • After the inspection we will begin preparing the appraisal report in the following manner:
    • Review and perform takeoffs from available construction plans.
    • Calculate square footages.
    • Determine major construction assemblies and system quantities.
    • Identify and exclude non-insurable components
    • Calculate insurable costs
    • Create asset description profiles.
    • Assemble a summary schedule of insurable values
    • Final check and review

What types of insurance value appraisals are there?

First Time Insurance Appraisal

A complete appraisal involving all of the steps as described on this page.  For first time customers only.

Update Insurance Appraisal

For existing clients whose property has remained relatively unchanged we can perform an "update" appraisal at a fraction of the cost of a first time appraisal.  An update appraisal will reflect the latest insurable values and incorporate and changes made to the property since the last appraisal was made.

Re-Inspection Insurance Appraisal

For an existing client whose property has undergone major changes since our last inspection we can perform a "re-inspection" appraisal.  The process is the same as a first time appraisal but  because of the existing information already collected, a re-inspection appraisal can be performed at a much lower cost than a first time appraisal

View a Sample Insurance Appraisal Report

Insurance appraisal report contents