Do you need an appraisal for your home?
When appraising your home, you want to be sure of the appraiser's expertise. The first thing to determine is what type of appraisal you need. In fact, there are several ways to have your home appraised.
This may be for insurance purposes (called rebuilding value)
The value of a building to be insured is the reconstruction value. This is often confused with an economic value or a WOZ value. When taking out insurance, the purchase value, the historical cost/building cost or the current value are used, for example.
As a result, the chances of underinsuring your home in all these cases are very high. A fixed appraisal eliminates that. We look at what the current construction costs are for the home. Often the insured amounts are indexed annually. This can create the risk that after a number of years the rebuilding value will be very different from the actual construction costs. Standard indexing uses a percentage that can often differ from the actual increase in the value of your home. This can cause over- or underinsurance.
Underinsurance
The term underinsurance actually covers it. Your insurance pays out too little because the insured value is lower than the current reinstatement value. This could have been prevented with a fixed valuation based on article 7:960 BW.
Overinsurance
An often slightly less-exposed side of insurance is overinsurance. The danger of this is that you pay too much premium while the insurance does not compensate more than the actual damage. You can prevent this too with a fixed valuation based on Article 7:960 of the Civil Code.
Article 7:960 BW
The insured shall not receive any payment under the insurance which would put him in a clearly more advantageous position. The preceding sentence shall not apply in the event of a prior assessment of the value of an item of property pursuant to a decision commissioned from an expert or pursuant to a decision of the parties in accordance with the advice of an expert.
Whether this can be for economic purposes
You can also have your home appraised for economic purposes, such as when buying or selling a home, as justification for an investment decision or for (re)financing.
However, valuation is a complex matter that requires expertise and care. Something, therefore, best left to the specialists at FH Appraisals.
Our appraisers have years of experience and we are affiliated with the NWWI and appraisal web so you are assured of a good and validated appraisal report for your home with FH Appraisals.
For the valuation of houses we have to deal with a working area registration. This means that we are only allowed to appraise houses in 'Greater Amsterdam'. For example besides Amsterdam also in Amstelveen, Haarlem, Abcoude, Baambrugge, Vinkeveen, Mijdrecht, Uithoorn, Zaanstad, Purmerend, Almere etc.