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.