The main purpose of an insurance appraisal is to provide an estimate of the new cost of a substitute building, often called Replacement Cost New (RCN), to ensure that the total property has adequate insurance coverage and is reflective of the current costs for the subject property area.
Appraisal Inclusions
Following classifications of property are commonly included in the scope of our appraisal:
- Site Preparation and Foundation
- Excavation
- Foundations
- Framing
- Exterior Walls
- Roof Frame and Roof Covering
- Floor Structure
- Interior Partitions and Finishes
- Electrical and Lighting Systems
- Plumbing and Sewerage Systems
- Heating, Ventilating and Air Conditioning
- Site Services to Typical Lot Line
Appraisal Exclusions
Our appraisal service generally excludes the following classifications of property:
- Land
- Furnishings and Equipment, and any personal property of owners or employees
- Chattels or moveable fixtures
- Underground Site Services (beyond the property line of a normal building lot)
- Inventory, Supplies and other Consumables
- Changes due to Building Bylaws and/or Building Code requirements
The Cost Approach best suited for developing an estimate of the Replacement Cost New (RCN) for insurance placement purposes, as insurance premiums are normally based on Replacement Cost and not market value. The market and income approaches to value are therefore not applicable to the insurance appraisal assignment.
It is recommended that a full insurance appraisal be completed every three years. Having your property appraised frequently will ensure that the most up-to-date changes to construction costs, building codes, and bylaws are integrated into the appraisal. The initial insurance appraisal is a very comprehensive report. Current clients will benefit from an updated insurance appraisal, often at an appreciably lower fee, when the property has relatively remained unchanged. An update will include all changes since the previous inspection and will contribute to the latest insurable value. Ultimately, an insurance appraisal verifies that your property is effectively protected.
“We are pleased and honored to set forth a well deserved recommendation for Kent-Macpherson, who are and have been the major leading real estate appraisal and consulting firm serving our thriving communities of the Okanagan and Similkameen Valleys of British Columbia for more than 40 years… It was Kent-Macpherson who first realized the huge potential of establishing a wine region in this pristine, northern fruit growing region … We are so grateful for their expertise and their continued heartfelt contributions to all in the community.”
Steve Cipes, Proprietor/Founder, Summerhill Pyramid Organic Winery and Bistro