Property Valuations - Be in Control of Your Data
Regardless of the premium amount, my goal with each public entity or education client is to reduce their overall cost of risk. In a situation involving building valuations, it’s clear that insureds must be in control of their own property data. Rather than letting those that underwrite your property exposures also set your values, you must conduct an independent appraisal at least every five years, provided you update the values annually for betterments and improvements.
Why is this important?
- It puts you in control of the values being used and prevents overinflated values which result in higher premiums
- It provides underwriters with better C.O.P.E. information and values resulting in a better comfort level which could result in more competitive rates
- It allows you to properly set your blanket limit and avoid having an undervalued building be questioned in a time of loss
- It highlights special features that are often overlooked (e.g. historical features, fine arts and antiquities, unusual construction materials, specialty equipment, etc.)
- It gives you an independent inventory of your properties.
- It provides a guarantee from a third party as to the validity of scheduled buildings and their values
In the end, you may be surprised by previously overvalued buildings which will now result in lower premiums. But, don’t fear that an appraisal that results in new, higher values. You now have a tool to negotiate better terms with carrier underwriters. The comfort level of them knowing exactly what you have will pay dividends. Still have questions? We have answers! Chat with an 'A' Team expert today.
- Property Valuation: Cost Approach Method
- C.O.P.E. — What Is It, and Why Does It Matter?
- The 8 Cyber Components Underwriters Evaluate
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