Borealis Appraisals Ltd.
Insurance Appraisal
What is an appraisal for insurance purposes?
An insurance appraisal is technically not an appraisal at all! Considered a “Consulting Report” this type of report contains an estimate of the Replacement Cost of the home to provide to an insurance company. The insurance company uses the report to accurately set the amount of insurance needed to replace the structure according to current building codes and construction standards.
How is an insurance report completed?
Similar to an appraisal, the insurance report begins with a full interior and exterior inspection of the home to document the specifications of the build. The appraiser will then use industry-approved cost manuals and current construction costs from local contractors and construction companies to determine the up-to-date cost to construct your home. An allowance for demolition and debris removal is added to the cost analysis and the report concludes a total insurable value.
It is important to note that this value does not represent a market value for your property.