Insurance Appraisal Report

 

Our work in preparing the insurance appraisal for you will involve the following:

 

  • Discussion of insurance issues with risk manager
  • Discussion of building issues with property manager
  • Reviewing existing building condition reports
  • Reviewing existing environmental site assessment reports (Phase I and II)
  • Inspect the subject property with property manager/on-site staff
  • Measure the subject property
  • Photograph the subject property and a typical unit
  • Review existing plans and working drawings of the subject property
  • Produce a sketch of the building footprint if no plans or survey is available
  • Develop an estimate of replacement cost for insurance purposes utilizing some of the following resources, as appropriate
    • Handscomb's Yardsticks For Costing
    • Internet-based research
    • Marshall & Swift database
    • RS Means Company Inc. Cost Manuals
  • Develop a cost estimate for demolition and debris removal in the event of a loss
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    Replacement Cost Estimate Inclusions

     

    The condominium corporation should make certain that the appraisal, and hence, the property portion of the insurance policy covers only those items for which the corporation is responsible. Typically, insurance policies for condominium corporations include:

     

    • Site preparation and excavation (within the footprint of the building)
    • Foundations
    • Framing
    • Cladding (including windows and doors)
    • Roof frame and covering
    • Floor structure
    • Interior partitions and finishes (up to the finish on the ceiling and walls)
    • Electrical and lighting systems
    • Plumbing systems
    • Heating, ventilation and air conditioning systems
    • Fire protection and security systems
    • Vertical transportation systems (if applicable)
    • Standard units (as built by the Declarant, or developer)
    • Equipment rooms, lockers
    • Site Services and landscaping
    • Any additional specialty features, such as amenities and recreation facilities, underground garages, etc.

     

     

    Replacement Cost Estimate Exclusions

     

    Exclusions are property items that are normally excluded from insurance coverage and include items such as:

     

    • Land
    • Improvements within individual suites made by the owners or tenants
    • Furniture, appliances and other chattels owned by the unit owner or tenant
    • Other current and intangible assets
    • Underground site services (outside the footprint of the building)
    • Common property assets such as fitness equipment, entertainment equipment, furniture and artwork, which are not affixed to the property but are owned in common.

     

     

    Unit Inspections

     

    Each insurance appraisal that we do, whether for a townhouse development or a highrise, involves inspecting a 'typical' unit in order to note the finishes and productions provided by the declarant when the development was originally constructed.

     

    Most new condominium corporations already have a 'standard unit' by-law which outlines in detail what is to be included for replacement in the event of a substantial loss. It deals with unit finishes, etc. and is designed to outline what is to be replicated. Improvements and betterments are excluded from this and are the responsibility of the individual unit owner to insure with their 'unit owner' insurance package.

     

    For those condominium corporations that do not have such a by-law, it is even more imperative that a typical unit be inspected. We recommend that corporations consult with their respective property manager and their corporation's solicitor to develop and pass a 'standard unit' by-law.