What is included in an Insurance Appraisal?
An Insurance Appraisal has 4 components.
The Replacement Cost New (RCN) value of the building including materials, labour, professional fees, overhead, contractor’s profit, taxes and insurance, in order to replace the Building(s) if damaged or destroyed;
The Site Improveme…
Incomplete Strata Developments
We are a strata with 3 townhome buildings occupied and 2 more under construction. How is this handled?
Typically the developer is responsible for insuring buildings under construction, until they are registered as part of a Strata Corporation.
From an insurance appraisal providers per…
When should I order an Insurance Appraisal?
We usually suggest ording it 30-90 days before you need one. The firm is usually voted on at the AGM, but this does not always coincide with the date of the policy renewal date. Give the Insurer time to read the appraisal.
The updates will come about 60 days prior to the renewal date.
What is the Cost of an Insurance Appraisal?
Costs are dependent on the work involved. It must be remembered that if you want to change firms, the new firm cannot rely on the old firms’ data, and the fee will represent the charge for the time to measure the building for the first year.
The renewal will usually be at a lower fee.
How often should an Insurance Appraisal be done?
Annually, as required by the Act.
Professional firms like Strata Reserve Planning have 3 year programs with free annual updates for our clients so that they have a recent appraisal available to them at all times.
The first year is a comprehensive inspection on site, while t…
What will the Insurance Appraiser need?
The appraiser will need access to building plans or strata plans to measure the building, followed by a review with someone who is familiar with the property. The inspection will include one or two typical suites, common areas, parking garages, and mechanical rooms.
It is important for an insur…
What about Suite upgrades, like new flooring or renovations?
Insurance Appraisals cover the building improvements that were installed by the Developer.
In older buildings, some features are obsolete, or were upgraded a long time ago. Insurance Appraisers will usually talk to Owners and Property Managers to determine the typical grade of finishing for the B…