Insurance Appraisals

What is an Insurance Appraisal?

An insurance appraisal is a replacement cost analysis which provides an accurate estimate of the amount of insurance required to replace each structure and/or amenity exactly as it stands on the day the report was prepared. These values are provided to assist the client in determining the amount of insurance needed for each structure and/or amenity for which the property insures. Sedgwick | Valuation Services Division's appraisers calculate each building's reproduction cost on a component-by-component basis from the ground up. Our software processes the complex calculations needed to correctly estimate the labor and material costs for each building component. Our software also calculates the taxes, fees, overhead and profit to provide an accurate estimate of what it would cost to reproduce the structure as it stands on the day the report was issued.

Why obtain an Insurance Appraisal?

Most property owners, managers, boards and/or insurance agents believe that obtaining an insurance appraisal for their property is one of the best decisions they have ever made. The reasons for this are simple:

  • Obtaining an insurance appraisal demonstrates due diligence on the part of the board members, property manager and/or insurance agent.
  • The owners, board members, manager and/or agent have the peace of mind knowing that the property is correctly insured.
  • An insurance appraisal assists your agent in placing the property coverage with a carrier by providing documentation that underwriters need to write coverage.
  • Obtaining an insurance appraisal prevents under-insuring, which puts the property at risk for not having adequate funds to rebuild in the event of a catastrophic loss, or over-insuring, which results in paying extra insurance premiums.
  • An insurance appraisal provides a third party, unbiased valuation of the property's replacement cost.
  • If a loss occurs, a Sedgwick | Valuation Services Division appraisal, along with all data acquired in performing the appraisal, will be available to the client to help expedite the settlement of the claim.
  • All digital photographs taken at the time of the physical inspection are electronically archived for the clients use in the event of a loss.
  • Having an up-to-date insurance appraisal provides accurate values for coverage, eliminating the possibility of a co-insurance penalty in the event of a loss.

What is Involved in a Sedgwick | Valuation Services Division Insurance Appraisal?

  • A full consultation with a representative of the property to discuss the scope of the work
  • In-depth on-site inspection of the property by the appraiser
  • Examination of all construction plans for the structures included in the insurance appraisal, if provided
  • Digitization of all construction plans to determine accurate square footage and material quantities
  • Production of appraisal report with the construction plans utilizing state of the art engineering and construction cost data
  • software programs

The complete insurance appraisal includes:

  • Definition of Hazard Valuation (Any non-flood peril)
  • Definition of Flood Valuation (based on National Flood Insurance Program Guidelines), if needed
  • Detailed Building Descriptions
  • Property Location Map
  • Photographs of Each Appraised Structure (High Resolution Digital Photographs)
  • Recapitulation of Values
  • Replacement Cost Estimates
  • Insurable Replacement Cost Estimates
  • Depreciated Replacement Cost Estimates

All digital photographs taken at the time of the physical inspection are electronically archived for the clients use in the event of a loss.


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