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.


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


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.

“Kent-Macpherson has been our family and businesses real estate valuation professionals for over 20 years. Whether at Tallus Ridge, or our many past and current real estate ventures, Kent-Macpherson consistently provides quality and reliable real estate advice we respect and trust.”
TRENT KITSCH • Project Manager Tallus Ridge at Shannon Lake