What Kind Of Special Appraisal?

[Helmut Forren]

I spoke to a gentleman more than a year ago, and really wanted him to do a special real estate appraisal for me. I want to do that now, but can't recall and can't locate my email records.

My question to the forum is to help me remember the TYPE of this special appraisal. It wasn't an approach, like sales/market, cost, or income. It was something totally different. Most appraisals we encounter are made for the lender. This appraisal was specifically made for the property owner.

In my specific case, I have a very unusual residence, whose replacement cost is as much as double the cheap-and-easy local-only market value, due to construction methods and materials. I worry in the case of a future total loss that my homeowner's insurance will want to replace my house with a cheap knock-off. When I was doing a bunch of research on this, I found this gentleman who did a different type of appraisal, designed for property owners. My recollection is that we agreed that having his type of appraisal might help me out in this insurance situation. My intent today is to get such an appraisal and then work with my insurance company to get almost anything in writing.

I do have one adjective-appraisal in mind, but I don't know if it's the correct adjective. When I looked up the definition, it didn't seem to match exactly. I won't mention that adjective here so as not so skew the responses I may get.

Thanks very much for your advice and assistance.
-Helmut Forren

 

[BRCJR]

Sounds like you are wanting an appraisal that opines the insurable value.

 

[Ken B]

Sounds like you are wanting an appraisal that opines the insurable value.

More specifically, it would seem that the OP is looking for a reproduction cost estimate rather than a replacement cost estimate.

The OP should be advised that most appraisers are not general contractors and are not typically considered to be experts with regard to cost estimating, although the cost approach is one of the valuation methods we utilize. If I had a one-of-kind improvement, I would be seeking the services of general contractors for cost estimating.

 

[Helmut Forren]

I appreciate those inputs, but there was a specific adjective for the type of appraisal. And I got the idea that there were many appraisers that did this kind of appraisal. I believe if I can find the right adjective, just like finding the right search term, it wall become clear and easy...

 

[Eli]

You are wanting a reproduction cost estimate like Ken said. I would call an architect or contractor like Ken suggested. Your insurance company may even have a specialist who could help you. You could get more than one insurance company to help you. The building supplier experts in your area probably have a professional contractor that could help you like Home Depot or Lowes.

An appraiser can do what you want but their sources will not be as credible or reliable as a contractor or insurance agent who specializes in reproduction costs unless they go hire a contractor or specialist after you hire the appraiser.

You really need a detailed materials list for reproduction costs and labor cost estimates. If you have building plans and a detailed materials list that would help whoever you hire. They will do that for you if they specialize like building contractors or insurance agents.

 

[leasedfee]

Value in Use? Or "Investment Value"? Reproduction Cost (not replacement cost) ?

 

[gregb]

Brother sells insurance, including home insurance. For certain clients he says Chubb is the only way to go, when protecting special properties.

https://www2.chubb.com/us-en/individuals-families/home.aspx

 

[CANative]

So why doesn't the OP just want an appraisal for Insurable Value? Sounds like that is what is wanted.

Insurable Replacement Cost

“Insurable Replacement Value” represents the replacement or reproduction cost of the insurable improvements. It is not a “Value”, but rather a Cost Estimate that makes no allowance for land value, depreciation, indirect costs, or developer’s profits. As such, it is totally unrelated to Cash Value or Market Value. “Insurable Replacement Value” is normally defined as follows:

1) The value of the property that is recognized as insured under the provisions of the applicable insurance policy.

2) The value used by insurance companies as the basis for insurance. The replacement or reproduction cost of the property with materials of like kind and quality intended for the same use less deterioration and non-insurable items. This Value is not market or cash value but rather it is entirely a cost concept.

The OP would want the appraiser to use reproduction cost in this assignment.

 

[Noreen]

Brother sells insurance, including home insurance. For certain clients he says Chubb is the only way to go, when protecting special properties.

https://www2.chubb.com/us-en/individuals-families/home.aspx

I've heard this too. Friends who have custom built homes at the Cape, and considering the cost of Flood Insurance for these homes, that's exactly what they select (Chubb's). I have read one of these reports and the one I saw was a very detailed narrative.

 

[gregb]

I've heard this too. Friends who have custom built homes at the Cape, and considering the cost of Flood Insurance for these homes, that's exactly what they select (Chubb's). I have read one of these reports and the one I saw was a very detailed narrative.

A local SRA used to work for Chubb inspecting and measuring homes, documenting the quality of construction in order to determine the proper insurance coverage for a particular property.