FAQ
Insurance Appraisal questions, answered.
Common questions on replacement cost, insurable value and the Canadian co-insurance clause — drawn from briefings with brokers, property managers and trustees.
Frequently asked questions
An independent assessment of the cost to rebuild a property on a like-kind-and-quality basis in the event of a total loss. It includes demolition, soft costs, code upgrades and an allowance for cost movement during the rebuild period.
Most Canadian insurers expect a full appraisal every three to five years, with annual indexation between formal reviews. Material changes — additions, refits, re-roofing — warrant an interim review.
Most Canadian commercial property policies require the insured to carry coverage at a stated percentage (commonly 80%, 90% or 100%) of the replacement cost. If you are under-insured against this requirement, the insurer can apply a co-insurance penalty and settle a partial loss on a proportionate basis. A robust independent appraisal protects against this exposure.
Yes. Cover is held to the limits required by the RICS for the size and nature of the engagements undertaken. A certificate of insurance can be provided as part of the engagement letter.
Reports are prepared to the RICS Red Book standard and signed by an MRICS-designated chartered surveyor. They are accepted by Canadian insurers and brokers as evidence of insurable value at renewal.
Yes. Single-asset appraisals are most efficient within day-trip distance of major centres; portfolios are sequenced into regional inspection trips. Travel is itemised separately on the quote.
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