Insurable Value

Your home is your most valuable asset. Do you know if you’re protecting your net worth from unforeseen disasters?

Anderson Appraisal Services can be trusted to help you ensure that you’re properly protected

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Insurance Replacement Valuations

Is your home properly insured? You need to know the answer now, not after a catastrophe.

For many people, their net worth is made up largely of a home. It’s common for many homes to be under-insured and in some cases over-insured. When you’re under-insured, it means something as common as an electrical fire could wipe out nearly all of your net worth. And if you’re over-insured, you’re wasting hundreds or thousands of dollars that could be put to better use.

A key component in your home insurance is the Insurance Replacement Valuations. This is defined as “the cost of replacement of all improvements to a property which could conceivably be destroyed.”

The insurable value is less than the property’s appraised market value, because it excludes the value of land on which the building stands. The formula for computing the insurable value is usually stated in the valuation clause of the insurance policy document. Some clauses can either include or exclude the foundation and certain portions of the plumbing and electrical systems.

Insurable value appraisals and services are generally used for the following purposes:

  • Proper Placement – Determine the proper amount of insurance to be carried to assist in recovery in the event of loss, without paying premiums for excessive coverage that can never be collected.
  • Proof of Loss – Establish a reasonable basis for preparing the required proof of loss in the event of a catastrophe.
  • Updating – To provide the client with a report which facilitates its revision on an annual basis in order that the property record and insurable values may be kept current.
  • Damage Verification – In the event of a catastrophe within the county, we provide verification inspections to determine if properties were damaged.

Replacement Cost New (RCN)

For insurance purposes, it is necessary to establish the “replacement cost new” for the existing property assets that are the subject of the valuation. In determining this value, an estimate of the replacement cost of the assets is determined by utilizing an appraisal technique referred to as the cost approach. In using the cost approach, the value of a residence is determined by the current expense of constructing a similar structure of like utility.

In the case of real property valuations (buildings), once the overall replacement cost for the asset is established, a reduction should generally be made to account for items that are excluded from coverage under the insurance policy. Examples of items typically excluded include the building foundation, underground piping and wiring.

The final value is then reported to the client and/or their insurance carrier for establishing the appropriate amount of coverage for the real property.

At Anderson Appraisal Services, our professional Insurance Replacement Valuations establish an independent, insurable replacement value of residential real estate. The results of our valuations are generally used by lenders, homeowners and insurance carriers to determine the proper amount of insurance to be carried on a residence.

Why Choose Anderson Appraisal Services

Having a well-developed and accurate Insurance Replacement Valuation is important for peace of mind and financial protection. We are one of the most experienced appraisal firm in San Diego County and will provide trustworthy valuations that enable people to make well-informed decisions.

Homes Appraised

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Total Value

Unique Clients

Years of Experience

I am currently a mortgage banker and have worked for other bankers, mortgage brokers and big banks over the past 16 years. Anderson Appraisal is by far the best appraisal company I have ever work with. They are knowledgeable, straight forward, responsive and do quality work. They do what they say they are going to do. Their performance is impeccable.
Dean Brown
Dean Brown
21:12 03 May 18
Anderson Appraisal Services did a great job of successfully presenting arguments to the Assessments Appeals Board that reduced the assessed value of our property from $3.0 million to $2.0 million, and performed the work both promptly and at a reasonable price. I would not hesitate to use the firm again.Joel H., Property Owner
Joel Holliday
Joel Holliday
21:09 07 May 18
By far the best service we have ever received from an appraisal service! Professional and knowledgable...a true pleasure to work with.
Kurtney Noonan
Kurtney Noonan
20:52 28 Mar 18
OMG.... efficient. Friendly, Professional. Needs to be on every good AMC's list.
David Sider
David Sider
07:02 11 Apr 18
Our appraiser, Kevin, was fantastic. He was fast, understanding, and very informative. He understood the dynamics of the neighborhood, offered advice on selling, and suggestions for improvements to get added value. I would certainly recommend the services of this company.
S. Rosser
S. Rosser
02:19 21 Dec 17

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