Did you know that the industry best practice for onsite appraisals is anywhere from 3-7 years? Given the recent wild swings in construction material and labor costs, ignoring a regular review of your property schedules could prove to be a costly mistake.
This is typically the best cadence to follow because buildings and the costs of replacing them can significantly change over time. It is critical to get updated valuations on a consistent basis.
There are a variety of factors that impact appraisal valuations, including external factors and internal forces.
Influencers:
External Factors
- National / Local Construction Cost Changes
- Demand / Pressure from Insurers, Agents
- Pool / Insurer Support
Internal Factors
- Type of Annual Valuation Updating (none/trend-only/onsite)
- Amount of growth/expansion (# of major projects)
- Recent Loss History
- Specific Concerns (i.e. Historic, utilities, specialty property)
Have any questions about property appraisal cycles? We’re here to answer all of them and get you the support and accurate data you need. Get started by reaching out to us here.