- How Much Money Is Needed To Invest In Rental Property?
- Should A Real Estate Investor Get An Agent’s License?
- 5 Big Factors That Affect The Costs Of Renovating Your Home
- SIBOR Hike – What You Can Do With Your Current Loan
- 6 Basic Don’ts Of Real Estate Negotiation Tactics
- Will New Condo Relaunches Trigger The Great Property Sale We Have All Been Waiting For?
- 10 Proximity Amenities That Add Value To Real Estate
- How To Get Personal Loans More Easily With Good Credit
An insurance appraisal is an appraisal of property to determine several types of values and estimates so that the insurer would have a good idea how much coverage is adequate for a policy.
These appraisals are conducted by specially trained staff to take into account variables which the insurer values.
This is why they are seldom conducted by third party appraisers.
The results of these valuation techniques can sometimes vary wildly from a typical appraised value or fair market value.
For example, a building might have a market price of of $500,000 but an insurer might deem that the replacement costs would be just $400,000 in the current market.
This is why they should never be used as a measuring stick of property value, but can be used for research and analytical purposes.