If you own property in the State of Florida, it is essential to obtain a property appraisal for insurance purposes. The value of real estate in Florida has been rising rapidly over the past few years, as has the cost of property insurance. By obtaining an insurance appraisal, you can ensure that you have the right level of insurance coverage to protect your investment.
What is a property appraisal?
A property appraisal is a detailed, written, independent assessment of a property’s worth by a licensed appraiser. Property appraisers assess the property’s condition, location, and other relevant factors to determine its value. It can be ordered by you, a professional advisor, lender, lender’s agent, or your insurance company to help facilitate a real estate related financial transaction for any number of purposes. This includes such things as:
- Buying or selling a residential or commercial property
- Mortgage refinancing
- Insurance purposes
What is an insurance appraisal?
Like any property appraisal, an insurance appraisal seeks to put a price on the value of your home or commercial property. But unlike a purchase appraisal, which determines a property’s market value by comparing it to other properties like it in the area, an insurance appraisal calculates what it would cost to replace / rebuild the property in the event that it was damaged or destroyed. Insurance companies request appraisals to understand these costs when determining insurance premiums and estimating the damages following a covered loss.