WHAT IS AN INSURANCE APPRAISAL?
A specialized report that provides an estimate for replacement cost value of a property. We call this Total Insurable Value (TIV). Property owners use the TIV to determine their insurance coverage in the case of a total loss. This is different from a market appraisal.
DO I NEED ONE?
Yes, all properties should have an accurate and current replacement cost valuation provided by a professional insurance appraisal firm.
Strata and Condo Corporations are required to obtain and maintain full replacement cost insurance on the building, the common facilities and any insurable improvements as outlined in their respective provincial Condominium or Strata Property Acts. The adequacy of the insurance must be reviewed annually; only a professional insurance appraisal company can ensure compliance with this legal obligation.
It is also critical for commercial and non-condo properties to obtain and maintain an adequate appraisal valuation annually to ensure that owners are insured to full replacement cost value. Fluctuating construction costs, changing building codes and municipal bylaws, and other challenges necessitate a professional 3rd party insurance appraisal firm to determine the replacement cost value of the property.
BOTTOM LINE: A sufficient TIV and professional appraisal can provide confidence in the operational resiliency of buildings or assets in the event of a catastrophic loss.
WHAT ARE THE OTHER BENEFITS?
Rest assured that you have sufficient coverage if faced with a major disaster.
An accurate replacement cost value ensures you only pay what you need to on insurance premiums. Plus, having a recent insurance appraisal may allow for more flexible terms with your insurance broker.
An accredited and professional appraiser will account for costs to bring older buildings up to current codes. This would include expenses for sprinkler systems, additional parking spaces, and handicapped access.
HOW DO YOU DETERMINE THE TOTAL INSURABLE VALUE?
Normac uses local cost guides and our own in house costing research to determine TIV. TIV varies based on location and is broken down by:
What kinds of properties do you appraise?
- Lowrise and highrise apartment buildings
- Townhouse complexes
- Mixed use developments
- Light industrial buildings
- Bareland properties
- Home owner’s associations
- Housing co-operatives
- Government + senior’s housing
- Places of worship
- Malls and commercial developments
- Hotels and resorts
- And more!
What is included in the appraisal INSPECTION?
Foundation, frame, exterior + interior walls, roofing, interior finished, HVAC, electrical,
plumbing, lighting, fire protection equipments, elevators, parking, and more
Pavement and walkways, curbs, retaining walls, fencing, lighting, patios,
underground services such as water, sewer, drainage, electrical, and more
Grass, shrubs, trees, irrigation systems, etc.
Swimming pools, jacuzzis, security systems, handicap lifts, etc
Exercise machines, televisions, billiards tables, etc, may be included
depending on the arrangements made with your appraiser.
Flooring, ceiling, countertops, cabinets, appliances, baseboards and crown mouldings,
lighting fixtures, vaulted ceilings, plumbing fixtures, etc
What is not included in the appraisal inspection?
Unless otherwise requested or stated in bylaw, personal belongings and contents are not included in the appraisal. This is the responsibility of the owner under their home insurance.
What is normac's insurance appraisal process?
Review Property Details
When and How Often Should an Appraisal be done?
- With a new construction, a replacement cost insurance appraisal should be done by the date of first occupancy.
- Every year. This is why Normac offers three year programs with free updates in year two and three. Having a recent appraisal completed ensures that any fluctuations to construction costs, building codes, and bylaws have been incorporated in the TIV.