Zambendorf
Sophomore Member
- Joined
- Jul 7, 2008
- Professional Status
- IT Professional-Appraisal Related
- State
- Florida
MSB's BVS is only for commercial and agricultural structures.
For homeowners, the MSB tool is RCT, available to consumers online at accucoverage.
The M&S MVS book (or the equivalent Swiftestimator software) would not be the correct cost basis for insurance (new construction vs. reconstruction).
Reconstruction basis is higher, reproduction can be higher still.
Same problem with all the free on-line tools others may use for the cost approach.
You can also try 360-Value, or e2Value. Ask the client to check with their agent to see which estimating tools will be acceptable to the carriers that will be asked to quote.
I wouldn't trust any desktop tool for a historic home.
Unlikely the client is looking to pay a third-party without some reason: they can get this done for free by any agent. Common scenario is that the estimate has already been done, but the client didn't like the answer (because it's higher than the market value).
Under-reporting the value can lead to inadequate limits for a total loss, or coinsurance penalties for a partial loss.
All of the valuation models are sensitive to inputs, they have system generated defaults and/or can pull from assessors records. The inputs should all be checked carefully.
You should read the policy to make sure you understand the valuation terms.
NFIP Flood has different terms than standard policies.
There may be special cases for older (ACV) or historic (reproduction vs reconstruction) properties.
Foundations may be included or excluded.
Making assumptions about application of deductions or depreciation without having the read the subject policy is not a practice I would recommend.
I suggest you confirm that your E&O covers this type of assignment.
For homeowners, the MSB tool is RCT, available to consumers online at accucoverage.
The M&S MVS book (or the equivalent Swiftestimator software) would not be the correct cost basis for insurance (new construction vs. reconstruction).
Reconstruction basis is higher, reproduction can be higher still.
Same problem with all the free on-line tools others may use for the cost approach.
You can also try 360-Value, or e2Value. Ask the client to check with their agent to see which estimating tools will be acceptable to the carriers that will be asked to quote.
I wouldn't trust any desktop tool for a historic home.
Unlikely the client is looking to pay a third-party without some reason: they can get this done for free by any agent. Common scenario is that the estimate has already been done, but the client didn't like the answer (because it's higher than the market value).
Under-reporting the value can lead to inadequate limits for a total loss, or coinsurance penalties for a partial loss.
All of the valuation models are sensitive to inputs, they have system generated defaults and/or can pull from assessors records. The inputs should all be checked carefully.
You should read the policy to make sure you understand the valuation terms.
NFIP Flood has different terms than standard policies.
There may be special cases for older (ACV) or historic (reproduction vs reconstruction) properties.
Foundations may be included or excluded.
Making assumptions about application of deductions or depreciation without having the read the subject policy is not a practice I would recommend.
I suggest you confirm that your E&O covers this type of assignment.
