1. First and foremost, to ensure that property values are accurate and adequate!
o That means more accurate premiums and coverage.
2. In the event of a loss, settlement maybe expedited.
o Values and actual property lost are certified, and the appraisal helps to form the basis for proof of loss.
3. Accurate statements of values form the foundation of limits, coverages, deductibles, and retentions.
o Risk management plans are complete, current, accurate, and documented.
4. Potential penalties and delays maybe avoided.
o Under-insured assets, co-insurance penalties, and conflicting valuations can spell trouble for your clients. So can often forgotten things like fine arts, rare library books, documents, etc.
5. A delay (or denial) of property coverage can be the difference between weathering a claim and going out of business. Or litigation versus smooth sailing.
6. Even with blanket or Agreed Amount coverages, appraisals can help expedite losses because there is no wrangling over values.
7. Real estate appraisals and bank appraisals are not interchangeable with replacement cost!
o Banks use many different types of valuations, but replacement cost is almost never used.
8. Having a professional appraisal can also help you and your Board be compliant with GAAP.
9. Appraisals can also help determine values in M&A situations and Buy/Sell agreements, especially when assets are being transferred among families.
Information above supplied by Industrial Appraisal Company (IAC), For a sample appraisal or more information please contact: Richard Starr, Regional Manager, rstarr@indappr.com, www.indappr.com, 443-350-4403
