Insurable Value Studies
The purpose of an Insurable Value Study is to develop an appropriate replacement cost that can be used to support insurance coverage.
The scope of work includes an inspection of the property and review of available drawings. A narrative report is prepared to support our estimate of replacement costs including a property description, detailed replacement cost estimates, photos and certification. The drawings assist in estimating the sizes and areas of the property. An Insurable Value Study can be used for all asset classes (multifamily, retail, hospitality, warehouses, self storage, etc.) and is particularly useful for condominiums.
For purposes of the services,
replacement cost is defined as:
The current market value to provide functional, full replacement of the structure with components and systems of similar utility, but without deduction for depreciation (physical deterioration). Such value is inclusive of increased cost of construction in order to conform with mandated municipal ordinances or codes relating to compliance with building codes in effect at the time of the valuation. In addition, such value is to be inclusive of demolition, demolition debris removal, and appropriate indirect costs, but net of construction financing related costs. Costs will not be estimated for residential unit interior improvements or commercial interiors/tenant work, if any, foundation systems, or utility connections.