WHAT IS AN INSURANCE APPRAISAL?
An appraisal is an independent, supportable opinion that serves to establish insurance values and help expedite claims in the event of a partial or total loss. Replacement cost is defined as the amount required to reproduce the entire property at one time, in like kind and materials, in accordance with current local, site-specific market prices for materials, labor, and manufactured equipment, contractors’ overhead and profit, and fees, but without provision for overtime, bonuses for labor, and premiums for material or equipment. The appraiser also considers the observed quality of construction, materials, design and workmanship. WHY GET AN APPRAISAL? Insurance premiums are a significant line item in the operating budget. Insurance agents and brokers base their competitive bids to insure the property in part on the insurable value of the property. Sound business judgment suggests the necessity to base each bid on the same level of property value. An initial and periodic independent ins
