(Photo: Chad Pawson)
The importance of knowing and applying municipal bylaws in insurance appraisals cannot be overstated as they are crucial in the appraisal process. This knowledge has an effect on the total insurable value and ensuring that a strata or condo corporation is insured to value. In the case of a natural disaster, the additional costs must be accounted for in the replacement cost estimate, as it is the development owner’s responsibility. An appraiser’s review of the property must include an assessment of the current property composition compared to the current standards and regulations of the specific municipality and province in which it is located.
A recent example highlights the importance of this knowledge through Vancouver’s newest public art piece – a replica of Stanley Park’s 800 year old Hollow Tree monument coated in a gold finish. According to municipal bylaws, developments that exceed 100,000 square feet are required to contribute $1.98 per square foot for art installation approved by the City, which was the catalyst for this project.
Another example of a municipal bylaw that significantly impacts an appraisal is parking requirements. It is often the case that parking requirements have changed since the original property was built. These changes must be incorporated into the appraisal in the event of a total loss. For example, in the City of Vancouver, general parking requirements have diminished for newly constructed buildings.
Appraisals that rely on generic 3rd party software leave stratas and condos vulnerable and significantly exposed. Having an experienced skill-set appraiser helps to manage risks by providing a written opinion of value in which a strata or condo can base their financial decisions. The appraiser’s value conclusions are based on prescribed methods, evaluation and research.
Click here to read the original CBC article by Chad Pawson, CBC News
At Normac, our 18 years of experience in the Vancouver market gives us in-depth knowledge of all bylaws, resulting in more accurate insurance appraisals. For more information on insurance appraisals or to request a free, no-obligation proposal, please contact us at 604-221-8258 or info@normac.ca.
