Insurance Appraisals, Reserve Studies and Updates

Keystone Appraisals will aid your company or association in establishing a sound fiscal position by providing you with a straightforward Insurance Appraisal and/or Reserve Fund Study that will serve and protect the life of your property.

As Board Members and Managers face increasing liability, it make sense to have these reports prepared by an outside professional. 

Our area of coverage includes Trail, Rossland, Castlegar, Nelson, Grand Forks and all communites and rural areas within the Kootenay Boundary Region of BC.  We also have a network of appraisers that provide this service throughout many areas of the province that include Vancouver Island, Vancouver, the Lower Mainland, Thompson, Okanagan and the Cariboo.

What types of Insurance Value Appraisals and Reserve Fund Studies are there?

1. First Time
2. Update
3. Re-Inspection

A First Time Insurance Appraisal or Reserve Fund Study is for first time clients only.  It is a complete and comprehensive report.

An Update Insurance Appraisal or Reserve Fund Study is for existing clients where the property has remained relatively unchanged.  The report will incorporate any changes since our last inspection and will reflect the latest insurable value and funding requirements.  These reports save our clients money as they can be performed at a fraction of the cost.

A Re-Inspection Report is also for an existing clients.  However, unlike an Update Report, the property has undergone significant changes since our last inspection.  Thus, the process is the same as if a First Time Insurance Appraisal or Reserve Fund Study Report, but as we have existing and relevant information, the report can be done at a lower cost.

What is the Purpose of an Insurance Appraisal ?

The main purpose of an insurance appraisal is to ensure that the entire property; materials, labour, professional fees, overhead, contractor’s profit, taxes and insurance are adjusted to reflect the current costs for the area that the property is located.

What is Included in an Insurance Appraisal ?

For a high end residential home the report is approximately 10 to 12 pages long and a commercial and/or multi-family project can be 20 to 30 pages long. The appraisals will include a complete description of the home and/or multi-family project etc. Its location including exterior and interior photos, building sketch and an itemized cost break down of the structures including the main home and any other improvements located on the property. The structures include adjustments for quality of interior and exterior finishes, built-in appliances, number of bathrooms, fireplaces etc. etc. An allowance for demolition and removal costs associated with clearing and preparing the site for the replacement building is taken into consideration. Allowances to bring the original structure up to the current Municipal Codes for fire protection, parking, handicap access and play areas are considered.

Why are Insurance Appraisals Needed ?

The costs for construction has sufficiently altered in the last couple of years and especially in areas where there is a current labour shortage thus many high end residential homes and multi-family/commercial properties are currently under insured. The insurance appraisal also gives a complete documentation of what is located on the property as of a specified date.

What is a Reserve Fund Study?

Components within a structure  such as the roof, windows, siding, heating and airconditioning systems, balconies and railings, etc., will deteriorate and wear out long before the building itself wears out and becomes obsolete.  Each component will have differing useful life spans and hence, there is a need for major repairs and replacements to maintain the building, and thereby prolong its life, in an asethetic, mechanically sound and serviceable condition. 

A Reserve Fund Study is a detailed assessment of the current state of a property and all of its components.  It will consider depreciation over the next 25 years, plus the expected costs, timing for replacements and repairs are projected while taking into consideration the return on funding investments during this time.

A sound reserve fund program will eliminate special levies or assessments to ensure that there is adequate funding to cover future repair.