Basics of insurance appraisal

In Florida state, the condominium law requires all groups to receive insurance appraisals. Insurance valuation is a document that estimates the exchange cost of all buildings or buildings within the association. This appraisal report shows all building sizes and improvements, talks about building construction and estimates the current cost and improvement for building exchange. The association submits this document to the insurance company and purchases insurance compensation for their community.

Specifically, the law of Florida statue 718. 111 (11) (a) is based on adequate casualty insurance, despite any request in the declaration of an apartment for compensation by the association for adequate damages. An asset renewal cost guaranteed as determined by independent insurance valuation or previous valuation update.The exchange fee must be determined at least once every 36 months. "

The purpose of the insurance evaluation is to know how much compensation the association will purchase. If not, the association will have to make this decision based on the insurance company's recommendation or estimate. Many organizations were over-insured before the legislation requiring independent appraisals was enacted. Accurate insurance valuation is a very valuable tool for confirming that the association got an appropriate compensation amount.

There are two kinds of insurance appraisals. The most common thing is evaluation to subscribe to danger insurance. This compensation includes hurricane, tornado, fire, smoke, and damage caused by vandalism. In the evaluation of dangerous insurance, we calculate new exchange expenses out of the improvement points of the property and deduct the buildings not covered by insurance. Association's risk insurance covers structural items of buildings and other items including plumbing, electricity, HVAC rough in, seat lock, indoor door, baseboard. However, purchasing a separate policy (called H06) to cover the interior of the unit for items such as finished carpenters, cabinets, countertops, piping trims, electric trims, ceiling fans, interior paint, It is the responsibility of the owner. Flooring, bath style and bathtub, and built-in appliances.

The second type is an evaluation to receive compensation for flood insurance. This kind of assessment may be necessary for the land in a high-risk flood area. Flood insurance is acquired through the National Flood Insurance Program (NFIP). Flood insurance covers more items in individual apartments than hazardous insurance, such as cabinets, countertops, showers, and other built-ins.

It is very important to understand how the apartment insurance process works. With basic knowledge, you can save money on a condominium by utilizing this knowledge, hiring qualified competent experts in advance and shopping that appraisal to various insurance companies .

Steve Swartz is one out of about 200 people nationwide receiving Reserve Specialist (RS) designation from the Community Association Association. He is a reserve analyst and real estate appraiser in Tampa, Florida, and has reserve studies and insurance appraisals throughout Florida.