Why Property Appraisals Are Invaluable to Business Owners
As a business grows, or as time goes by, the property you own will most likely change. These changes will impact the amount of insurance coverage you have in place. Maybe you made educated guesses on the value of all your real estate property. At the time, it was probably fresh on your mind when you purchased your properties. But, that may not be the most prudent method.
Here are the top 5 questions business owners need to ask themselves to properly value their real estate properties:
- When did I last review my property values?
- Is there a chance the property may grow or decrease in value?
- What have we added over the years?
- Have there been any changes in stock?
- Do I really know what my values should be insured for?
This past year, two of my clients have taken on the process of checking their property values. They hired independent appraisers to be sure that the property values on their buildings, contents, stock and equipment were in line with current estimates on their insurance policies. Both clients said this process was invaluable and gave them peace of mind.
Here's how the process goes:
- Start by hiring a trusted and recommended appraiser.
- The appraiser will ask for some very limited information to make sure they meet the right people at each location.
- They will inspect each property and send back a complete report with descriptions, values, pictures and recommended values.
- After receiving the report, you’ll have complete information to send to your insurance carrier and get a more accurate policy that will respond correctly in case of a claim.
If you want more details about property appraisals, talk to a member of the 'A' Team.
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