2 Property Appraisal considerations for large insurance programs

September 5, 2022

Insurance Appraisals

There are countless factors impacting property appraisals today including, but not limited to – a hard property market, increased CAT loss modeling, COVID-19 and related government spending programs, climate change impacts, construction cost changes and the list could go on and on. You can learn more about these factors here. With everything that’s happening, there are some patterns in the property insurance industry that you need to consider. 

  1. Shortening the Frequency Between Onsite Appraisals 

While every situation is unique when it comes to the frequency between appraisals, we’ve found that the sweet spot is around 3-5 years to ensure that you are minimizing your risk. A few factors that can impact your decision to appraise: 

  1. Implementing Annual Adjustments of Replacement Cost Values 

It is critical to implement a consistent, annual adjustment of replacement cost values, so they stay current with inflationary pressures. 

When adjusting your values each year, you should have a few resources that are applicable and reliable for your business. 

If possible, look for accurate data that is focused on your geographic region and make sure that your sources incorporate both labor and material costs. 

A few of our favorite trustworthy sources that we often utilize in our client researchare: 

We can help you interpret and apply all of this complex data to ensure you have the most accurate data customized to your specific needs.