Why a rebuild value appraisal is important
Do you ever wonder what amount your building is actually insured for? Correctly estimating the rebuild value of your commercial or residential building is more than a formal requirement of your insurer. It is your safety net in times of unexpected events such as damage or loss. But how sure are you of the amount you are insured for and what if that amount is incorrect?
Insurance based on proper assessment of rebuilding value
An incorrect rebuild value can have more consequences than you might think. With insufficient insurance, in the event of damage, not all costs may be reimbursed and additional expenses will be your own responsibility. An overestimation of the reinstatement value, on the other hand, can result in an unnecessarily high insurance premium. These are extra costs that you would rather spend elsewhere. It is therefore advisable to check the current insured amount and adjust it if necessary.
An appraisal on a fixed basis is the solution
At FH Appraisals, we understand that determining the correct reconstruction value yourself can be difficult. That's why we recommend a fixed appraisal based on Section 7:960 of the Civil Code. This appraisal takes various factors into account, such as unique features and market conditions. In this way, the correct value is determined and there is no question of over- or underinsurance. With a fixed appraisal according to the article of law, discussion about the insured value in case of damage can be avoided.
Why should you choose a rebuild value appraisal?
A reconstruction value assessment is appropriate for anyone who owns a building. Whether you are a business, owners association, investor, social institution, municipality or private individual, we are here to help.
Avoid overinsurance and save on insurance premiums
Prevent underinsurance and avoid discussion in case of damage and/or loss
Minimize financial risks in the event of damage and/or loss
Why FH Appraisals?
At FH Appraisals, you can always count on:
Our experience
At FH Appraisals, we know what we're talking about. After our inception in 2020, we have made great strides and have grown solidly. We have strengthened our team with experienced industry professionals. We are proud to say that we are now a mid-sized appraisal firm.
Want to know more?
Discover the possibilities
We perform all of our appraisals with enthusiasm. It is important to us that you are helped as quickly as possible. Therefore, we are easily accessible and respond immediately to your question or request. Please contact me without obligation!
Frequently asked questions about rebuild value appraisal
Do you have questions about rebuild value appraisal? Our FAQ section provides answers to the most common questions and supports you in making informed decisions.
In many cases, a rebuild value appraisal is required by the insurance company. A building appraisal based on rebuild value is also required if there is doubt about the accuracy of the current sum insured or to be insured on a fixed basis.
A building appraisal based on Art. 7:960 of the Civil Code(reconstruction value) has a validity period of six years. This term is maintained by most insurers. After this period has expired, most insurers require a reappraisal in order to remain insured on the same basis. This reappraisal then again has a validity period of six years. In many cases, insurers use an index figure to keep the insured amount somewhat up to date.
If we receive an order for reappraisal within the expiration of the validity period of the appraisal we previously performed, we always provide a reappraisal discount on the then current rates.
The main difference between an appraisal based on rebuild value and market value lies in the purpose of the appraisal. An appraisal based on rebuild value estimates the cost to rebuild the property in the event of a total loss and is primarily important for insurance purposes. It ensures that the property is not underinsured or overinsured. An appraisal based on market value, on the other hand, determines what the property is worth in the current real estate market, crucial for buying or selling the property, obtaining financing, or for valuing the property in financial records.