Report states not USPAP compliant

[sos]

You are right. It is an estimate of replacement cost.

Also if the state of Florida allows Citizens to write policies for commercial properties, it will take an act of the legislature, here is another income stream.

Who needs to fight with mortgage people?

 

[Fred]

not any type of value by definition

You have hit on the key question.

Just for information, the ASA long defined an appraisal as an estimate of value, an estimate of cost, an estimate of income capacity.

Also, value is not necessarily exchange value. Replacement is often what something is worth to an owner in a compelled transaction, ie insurable value.

If it is reasonable to say that a cost estimate for an insurance company is not an estimate of any kind of value, then one would not be performing work covered by the SOWR or Std 1 and no cert would be required.

 

[Verne Hebert]

But the question is what is the scope of the assignment?

The insurance company may have asked for an "appraisal", and the appraiser may not have given them what they expected............and they don't know the difference.

Does the appraisal defined any type of value? Does the letter of engagment or appraisal order?

 

[sos]

All that Citizens states in their Underwriting Manual (Rule 130E 2) is "a current appraisal". Nothing else. But having done them, all they want is replacement cost and pictures.

 

[Terrel L. Shields]

an "appraisal",

is a generic term which involves everything from assessing the performance of an employee or operation to the valuing of property for a variety of purposes.. "Appraisal" is an unfortunate choice of words for what we as Real Estate Valuers do.. Our work is "certified" and "licensed" and other appraisers do not and cannot claim that. It would be far more transparent to be called something else besides appraiser when we value homes.

 

[Fred]

But the question is what is the scope of the assignment?
The insurance company may have asked for an "appraisal",

But USPAP's definition of appraisal practice says nomenclature doesn't matter. It is what it is, and that may not be what it is called.

Just because the report doesn't define the value, doesn't mean the appraiser didn't estimate one.

 

[robert higgins]

His insurance is requiring appraisals, sounds like an appraisal by name. What is the SOW stated in the report.

Sounds funny to me that an insurance company would ask an Appraiser to do a estimated replacement cost of improvements, isn't that the job of an insurance agent, to estimate replacement cost for insurance.

What happens if the appraser is wrong with the replacement cost?

 

[Ms. Janet]

And USPAP states explicitly "USPAP does not establish who or which assignments must comply." (page 6, Line 176)...Janet, you might want to read the rest of that paragraph.

Ok, I read it. Didn't learn anything new really


This is from Citizens Insurance 6/14/06.

Appraisal: All commercial submissions must be accompanied by an appraisal not more than 18
months old. Due to the unavailability or delay of appraisals, we can accept the following
documentation to substantiate the building values and construction details until the appraisal is
received. If you submit one of the items below, we also need a copy of an executed contract to have
an appraisal completed by a Florida Licensed appraiser.
1. A full inspection along with the replacement cost estimate.
2. A letter from a licensed builder stating the construction details of walls, floors and roof along
with cost per sq ft.
3. An ISO commercial valuation system detail report along with MSB comprehensive
commercial worksheet
4. A “4-Point” inspection along with the MSB estimator
Please be advised that when the appraisal is received if the values differ from either of the
acceptable methods above we will endorse the policy back to inception date in accordance with the
appraised values.

 

[sos]

Cost is not necessarily value. As to what happens if the appraiser is wrong with the replacement cost? What happens if the appraiser is wrong with his estimate of value for a house? In other words, you better know what you are doing.

 

[jay trotta]

I can clearly see the "Target" - it's the language Indians eye can't see

ahhh, that tid bit of americana....A praisal or Ap praisal...perhaps App raisal-
guess ifn ya move all the letters together.....U might find the answer.

Perhaps we are all Certified/Licensed so that we can become the ones with the greater "Liability" in the end. One would possibly believe if their are "figures involved" that provide an end result - it could be something in favor of what the "License/Certification" was "Intended" for;

The end result for a CPA is ?