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Our team of experienced Insurance Appraisers endeavors to provide the highest quality appraisals in our industry. The main purpose of an insurance appraisal is to provide an estimate for replacement cost. We refer to this as Total Insurance Value (TIV) and it comprises the following:
Insurance appraisals are highly specialized reports that start with a site inspection followed by a property analysis to determine the calculation of supportable estimates for replacement costs. Qualified appraisers are able to produce reliable estimates based on expertise acquired through extensive training and experience. Moreover, experienced appraisers make their estimates based on an analysis of the current environment, and do not rely on third party software based outside the region or use generic information to determine their estimates.
Our appraisals include photographs, construction details, description of assets included, description of assets excluded, the appraisal process described, and our replacement cost conclusion. Normac provides multi-year appraisal programs for our clients. The cost of the appraisal includes the initial appraised value, plus free annual updates.
Our Certified Reserve Planners (CRPs) and Engineering Trained Professionals tap into their expertise and vast experience when compiling Reserve Fund Studies (referred to as ‘Depreciation Reports’ in British Columbia) for client companies. We have a multi-disciplined team of specialists including financial experts, costing-experts, and building condition experts, each bringing their respective proficiencies to the forefront when compiling the reports. We approach every report with an unbiased lens and diligently prepare our findings with the knowledge that our clients require customized solutions and not generic reporting.
Depreciation Reports are required in order to make adequate provisions for major repairs, replacements and improvements of building components and common elements. The BC Strata Property Act and the Provincial Condominium Acts throughout Canada legislate that strata and condominium corporations must establish and maintain contingency reserve funds for these shared expenditures.
Depreciation Reports focus on a property’s components found within the common areas, which include, but are not limited to structure, enclosure, electrical, mechanical, fire safety, interior finishes & amenities, and site work. These are all items that require attention and care throughout their respective lives. Consequently, a Depreciation Report highlights each component’s expected life span, current condition, and future requirements.
Once a Depreciation Report or Reserve Fund Study is complete, it becomes an effective tool as it provides a great deal of valuable information. The report provides a solid foundation for future planning by establishing an inventory of assets, setting a schedule for timing short and long term projects, and providing estimates for current and future project costs. Property owners and managers can use their Depreciation Report or Reserve Fund Study as the starting point for creating a capital plan, a maintenance plan, a short-term renewal plan, an annual budget, and as a framework of communication to help owners understand project priorities and costs. Read Normac’s Getting the Most from your Depreciation Report or Reserve Fund Study for further information.
To learn more on the amendment to the Strata Property Act (BC) and its subsequent requirements please visit our Resources + Publications page. For more general information about Depreciation Reports, see our FAQ page.
With our depth of technical knowledge and comprehensive understanding of building science, Normac offers an array of services to assist our clients with the management and preservation of buildings, systems and assets relative to outlined goals and objectives. Such services include: Conditions Assessments, Warranty Reviews and Maintenance Reports. Normac’s multidisciplinary team of building experts can articulate to owners and property managers how best to extend the life of building components, what to anticipate with respect to future capital expenditures and provide critical insight and tactical advice for asset management purposes.