November 2024
Insurance appraisals provide an estimate of what it costs to replace property should there be a total loss. They are used to determine how much insurance should be placed on a condo building and its property.
A condominium corporation is required to insure their property for full replacement value. Insuring for a lesser amount to lower insurance cost is not an option. A new insurance appraisal is required according to a pre-determined schedule to ensure adequate insurance is maintained.
The process of obtaining an insurance appraisal should commence up to six months prior to expiration of a policy. This allows time to obtain quotes, review proposals, provide documentation, schedule a site inspection, and negotiate terms prior to a policy’s renewal date.
An appraiser will conduct an exterior and interior property inspection. They look at visible damage, interior finishes, safety and security systems, mechanical systems, roadways, landscaping, building construction materials, architectural plans and the corporation’s governing documents.
Replacement costs for a building will reflect current building codes and laws to ensure compliance with current standards.
An insurance appraisal ensures that, in the event of a total loss, your corporation has money available to rebuild without requiring a special assessment or other funding sources.
