Q: Why is it important that living area, garages, porches, terraces, etc. be appraised separately with specific calculations shown in the appraisal report?
A: Townsend Appraisals carefully calculates and provides you with the values for all of the varied areas of your project. The construction costs for these areas differ significantly, so it is essential to cost them separately to avoid being over or under-insured.
Q: Why is it important to hire a state-certified appraiser?
A: If the appraiser is not state-certified, the only way to register a complaint is through client litigation. State-certified appraisers are regulated by the Florida Department of Business and Professional Regulations. A state-certified appraiser must also conform to the Uniform Standards of Professional Appraisal and take ongoing continuing education courses to maintain certification.
According to William D. Knepper, President of Collier Insurance Services, "The Florida Condominium Law (Statute 718) holds directors responsible for maintaining adequate property insurance for the common property including buildings of the association. The only way a director can safely meet this obligation is to obtain an appraisal on a regular basis by a certified appraiser."
Q: What determines the Hazard Insurance value for Condominiums, Homeowner Associations (HOA) and Cooperatives?
A: Townsend Appraisals provides a value for Hazard Insurance so you will have an accurate assessment of the insurable replacement cost value with applicable exclusions. This means you will be sure to have adequate insurance coverage without being over-insured. According to the 2003 Florida Statutes for Condominiums, Hazard Insurance does not include:
Floor coverings Wall Coverings Ceiling Coverings Electrical Fixtures or Appliances Air Conditioners or Heating Equipment Water Heaters Built-in Cabinets and Counter Tops Window Treatments including Hardware
Q: What determines the Flood Insurance value for Condominium Homeowner Associations (HOA) and Cooperatives?
A: Our estimated values for Flood Insurance are based on guidelines from the Federal Emergency Management Agency (FEMA). Estimated values for Flood Insurance include:
All floor, ceiling and wall finishes All electrical fixtures, appliances, air conditioning, water heaters and built-in cabinets, counter tops and window treatments (including hardware) All foundations, excavation, piping below ground and site work
Q: What about depreciation? Is it included in the values you determine for Flood and Hazard Insurance?
A: Depreciation does not apply for Hazard Insurance: Replacement Cost Values (RCV) are provided.
Flood Insurance, underwritten by the U.S. government, is available for the total building up to a maximum of $250,000 per unit. It follows that a four-unit building could be covered for a maximum of $1 million. Additional flood coverage for the total building can be obtained on the open market from the excess and surplus lines market, which may use the depreciated value referred to as actual cash value (ACV). |
