Insurable Value

[flynno]

Is anyone else receiving insurable value requests to be included in a market value appraisal from a lender? I told them there are several good reasons for not including that in a residential URAR appraisal report.

 

[gregb]

USDA Rural Development form-

 

[ZZGAMAZZ]

Don't the cost manuals used to determine residential real propery replacement values include a caveat that Insurable Value requires a different source? [Alhough gregb's post above confused me....]

 

[Terrel L. Shields]

Don't the cost manuals used to determine residential real propery replacement values include a caveat that Insurable Value requires a different source? [Alhough gregb's post above confused me....]

Insurable value is known to Insurance agents as "Reconstruction Value". After all, you have to demolish the damaged parts and rebuild. It's more expensive.

 

[Terrel L. Shields]

The old Boeckh software (bought out by M & S and ruined) allowed you to toggle between the two values with a button. It was generally about 20% higher.

 

[flynno]

My points to the lender about not doing insurable value were: 1) basic E&O insurance doesn't cover it, 2) CoreLogic is typically not used by insurance agents, but rather 365, 3) the point made earlier that insurable value typically covers demolition cost which most appraisers don't know how to calculate, 4) most insurance companies provide it free of charge whereas this one lender in my case expects it to be included in the appraisal, 5) I believe it's a USPAP violation to include data within an appraisal report that has nothing to do with the development of the market value. I told my lender client the words "Insurable Value" have no business in an appraisal report.

 

[J Grant]

Never received it.

 

[flynno]

My points to the lender about not doing insurable value were: 1) basic E&O insurance doesn't cover it, 2) CoreLogic is typically not used by insurance agents, but rather 365, 3) the point made earlier that insurable value typically covers demolition cost which most appraisers don't know how to calculate, 4) most insurance companies provide it free of charge whereas this one lender in my case expects it to be included in the appraisal, 5) I believe it's a USPAP violation to include data within an appraisal report that has nothing to do with the development of the market value. I told my lender client the words "Insurable Value" have no business in an appraisal report.

 

[ZZGAMAZZ]

My points to the lender about not doing insurable value were: 1) basic E&O insurance doesn't cover it, 2) CoreLogic is typically not used by insurance agents, but rather 365, 3) the point made earlier that insurable value typically covers demolition cost which most appraisers don't know how to calculate, 4) most insurance companies provide it free of charge whereas this one lender in my case expects it to be included in the appraisal, 5) I believe it's a USPAP violation to include data within an appraisal report that has nothing to do with the development of the market value. I told my lender client the words "Insurable Value" have no business in an appraisal report.

If you are indeed a Freshman tradesperson, eventually u will grow weary of responding to inane conditions, especially to a client who MUST already know you cant n wont do it, if it is a routine mandatory requirement. Someday you stop yourself before responding "**," or not, depending on your desire to earn a decent income...

 

[Terrel L. Shields]

I don't mind responding with insurable value as long as I use the insurance books and report that number with the caveat that I am not responsible for the accuracy of the numbers and the client should consult an insurance underwriter. (My uncle was an underwriter with a small mutual firm)