Cost Replacement New (also known as Insurance Appraisals) is a replacement cost analysis intended to quantify the total amount required for restoring building/s to a condition that provides the same utility. Materials and craftsmanship do not need to be identical to the original but of like kind and quality to the ones damaged or lost. No deduction is made to account for physical asset deterioration or depreciation.
Why would you want an insurance appraisal?
The majority of the condominium declarations have this as a requirement. There are, however, few other reasons why it is prudent to have Cost Replacement New appraisal study:
Providing accurate information to the insurance underwriters is crucial for obtaining the “right” amount of coverage. If the underwriting insurance value is too low it would not be able to cover the necessary repair costs in the event of an accident. This puts the corporation at risk. If the underwriting value is too high, it would result in constant unnecessary premium overcharges;
Complying with the condominium declaration is a necessity but even if such a requirement is not included, having an insurance appraisal demonstrates prudence by following proper due diligence on the property managers or board members side;
It is an unbiased document that could be relied upon in the event of a dispute between the insurer and the condominium corporation;
It is a reliable report in the event of challenges from individual owners to decisions made by the property managers or board of directors.
You will receive two Reliance Letter Reports in the two years following the Cost Replacement New appraisal. This means that for three years you will have accurate insurance coverage. It is a small cost to pay for three years’ peace of mind.
Why you should rely on our appraisal values:
Extensive knowledge of all variables affecting the conclusion of value – local construction trends, market conditions, construction materials, bylaw regulations, and availability of resources.
Extensive experience in valuing all types of condominiums – bare land, every imaginable type of townhouses, high-rise apartments, historic and some of the landmark buildings in downtown Toronto and Ottawa, commercial and industrial condominiums of all sizes.
All our reports adhere to the Canadian Uniform Standards of Professional Appraisal Practice, unlike others that choose to follow in Canada the US Uniform Standards of Professional Appraisal Practice.
We know it is inefficient to have CRN appraisal every year. As part of our service, we will issue two low-cost Reliance Letter Reports up to two years after the original appraisal date.
Building location can cause significant price premiums or discounts. We know the market we serve very well – we pay special attention to the location of the building and the ability of the construction company to deliver the required materials.
Cost Replacement New Updates
We had a Cost Replacement New appraisal done 5 years ago and just keep updating it with the Consumer Price Index. How wrong could we be? The accurate answer to this question cand be quite long and bore even the most die-hard statisticians. Therefore, we will provide a shorter version – until we develop capabilities to import entire assembled buildings using the Consumer Price Index will inevitably provide a wrong answer because it does not take into consideration the changes in the building techniques, the introduction of new construction materials, and the specifics of the local market. It tracks exactly what is designed to track – evolving over time basket of consumer products.
Markets We Serve
Our team of appraisers have specialised serving the market areas of:
