What is the definition of Appraisal?

An Appraisal provides the value of the property or the amount of the loss to be claimed when that insured property is damaged.

The appraisal provides a report as to:

1. The estimated value of the property or asset: This happens when a piece of art work, a precious metal, a building is being insured. An appraisal is needed so that the insurance company knows how much to insure the property. Having your property appraised before you insure it prevents under-insuring. You more or less are able to insure your property for the amount that it is currently worth in the market. Otherwise, you may have to fork more money to rebuild or replace that property when it is lost.
2. The estimated value of the claims to be paid: When a claim is made, an appraisal is also needed to determine just how much the insurance company has to pay in claims. When a loss is incurred, such as a loss of a building because of a covered hazard like a fire, the appraisal will compute how much it would take to replace the building (this includes materials, labor costs, taxes, etc.).

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability