Insurable Value Estimates in NJ

Clients employ Value Research Group in order to determine the insurable replacement value of their real property. Our valuation services help establish an independent value for our clients’ buildings, and are generally used by our clients and their insurance carriers to determine the proper amount of insurance to be carried. Insurable value estimates are commonly used for the following purposes:

· Proper Placement

Determining the proper amount of insurance to be carried to aid in the recovery in the event of a loss.

· Proof of Loss

Establishing a reasonable basis for preparing the required proof of loss in the event of a tragedy.

· Updating

Providing our client with a detailed report, which is revised on an annual basis so that the property record and insurable values are kept current and up-to-date.


Cost Valuation in NJ

It is essential to establish the replacement cost new (RCN) for the existing property assets that are the focus of the valuation for insurance purposes. In determining this value, an estimate of the replacement cost is determined by the cost approach method. In the cost approach, appraisers compare the cost of subject improvements to the cost of construction of substitute properties with the same utility as the subject property. If necessary, appraisers will also estimate the amount of depreciation attributable to physical deficiencies, design flaws and economic conditions.

As a part of the cost approach, we estimate the current cost of building the structure, then add that value to the value of the vacant land. Then we estimate the amount of accumulated depreciation of the subject property, subtracting it from the total to arrive at the property’s current market value.  The Cost Approach is most useful when supported by comparable sales and leasing information.

Determination of the RCN is the accepted valuation method for real property as part of an insurable value estimate. In the case of real estate valuations, once the overall replacement cost is determined, a reduction is made to account for items that are excluded from coverage under the insurance policy. For example, items that are typically excluded from coverage include the building foundation, wiring, and underground piping. After, we will provide our client and their insurance carrier with a detailed report on the final value for establishing the appropriate amount of coverage for the real property.


Insurable Value Appraisal in NJ

Using the cost approach, our expert staff will determine the final value of your real property, ensuring the proper amount of insurance is carried. If you would like an insurable value estimate, please contact us at Value Research Group to determine the coverage of your real estate property.