Insurance Apraisals

[wayne forbes]

A freind of mine is a Certified Residential Appraiser in Florida. She claims that she is doing work for an insurance company. She has so far appraised an older home (Built in 1920) valued at 1 million and has provided a Cost Approach quoting Marshall and Swift of which she has used their programs and calculations. As a Certified Residential Appraiser, what are the rules and ramifications of doing an appraisal for an insurance company?

 

[Webbed Feet]

A freind of mine is a Certified Residential Appraiser in Florida. She claims that she is doing work for an insurance company. She has so far appraised an older home (Built in 1920) valued at 1 million and has provided a Cost Approach quoting Marshall and Swift of which she has used their programs and calculations. As a Certified Residential Appraiser, what are the rules and ramifications of doing an appraisal for an insurance company?

Mr. Forbes,

Those answers are obtainable at this web site.

www.whatisthesow.net

:laugh:

Webbed.

 

[GA Benny]

I have received offers from insurance companies as well. Usually, all they ask for is the cost approach. I even had one that didn't even need a cost analysis but wanted me to inspect the property and prepare a report including measurements and notes on quality of construction so that they could accurately make decisions on cost estimates. Not a bad deal but the pay is pretty low. The one that just wanted inspections were only offering $25 per inspection. Which wouldn't be too bad if I could do 10 a day all in my county but they only needed about 20-30 per month within a 45 mile range. I said "no thanks!"

 

[Jim Onderisin]

If you are offering an opinion of value as an appraiser, you are subject to the USPAP. That's your guide. If you are just doing inspections, that's a different story...you can collect your $7 to $15 per inspection without having to worry about it.

 

[Joker]

I've performed several assignments for insurance purposes (appraisals and consulting). The rules are simple: follow USPAP. The ramifications are nill.

These assignments pay more than appraisals for mortgage purposes. Who cares what "they" offer? I know what I charge. If they want it, they pay for it. If I offer $2,000 for a new truck, there is a reason I won't get it. It's called negotiation.

 

[Fred]

Insurance appraisals aren't all that different from mortgage appraisals. After, they banks are already treating the cost approach like an insurance appraisal.

 

[CANative]

If you are offering an opinion of value as an appraiser, you are subject to the USPAP. That's your guide. If you are just doing inspections, that's a different story...you can collect your $7 to $15 per inspection without having to worry about it.

If you're an appraiser you're still "subject to USPAP" even if there is no opinion of value involved.

Correct?

 

[Ross (CO)]

Yeah,.....kind of like the same when an appraiser with an ACTIVE state-issued "appraiser" license goes out and performs and delivers reports of requested BPO's.....for some certain party's certain intended use....even if that use is not clearly defined within the "order" for the BPO.

 

[Financially Feasible]

Insurance appraisals aren't all that different from mortgage appraisals. After, they banks are already treating the cost approach like an insurance appraisal.

No one better be using my cost approach in my appraisals for insurance purposes... I have specific language (noted in 5 different places on the appraisal) that the cost approach is not to be used for insurance purposes. If I ever found that out otherwise, the guilty party better be ready to answer to my lawyer. :icon_mrgreen:

 

[mwbode]

There is a couple of large nationwide companies that specialize in insurable purpose appraisals only. Basically an inspection and a cost approach. I get requests from time to time, but don't provide due to my E&O coverage not covering me for that type of work. From what I have heard a number of local Certs are sub's for the large companies and are paid anywhere from $75-$105 an inspection.