Appraisals are an important part of the insurance industry.
They play an essential role in valuing commercial and personal property to determine how much money should be paid to replace lost or damaged items after an accident or disaster.
However, many people aren’t aware of what an appraisal entails, which means that their insurance claims may be lower than they should have been.
This article will help you get started if you want to learn more about how appraisals work.
What Is An Insurance Appraisal?
An insurance appraisal is a process in which an appraiser determines the value of the property that has been damaged, stolen or destroyed.
An appraiser will use many different valuation methods to determine a dollar amount for your loss.
For example, if you have experienced a burglary at your home and they take jewelry worth $2,000, you would need to hire an appraiser specializing in this type of work.
They might rely on photographs and descriptions of the missing items and their condition when they were taken.
Why Do I Need An Insurance Appraisal?
If you have been in a car accident and your vehicle is damaged, the insurance company will send an appraiser to assess the damages. If your vehicle is totaled, they will need an appraisal from their company to prove it has reached the salvage value.
The insurance company needs this document when you buy a new car or truck because they need proof that the vehicle is worth what they are paying.
You may also be wondering why you would want an appraisal of your vehicle- if you are trying to sell it or trade it in for something newer, most dealerships and banks will require one before they even consider giving you a loan or trade-in value.
How Often Do I Need an Insurance Appraisal?
The frequency of your property appraisal depends on a variety of factors.
The property type, location, and age of the home are just a few things that contribute to how often you need an insurance appraisal. You may need an annual appraisal if you live in an area prone to natural disasters or have a house over 100 years old.
For properties located in more stable areas, annual appraisals are usually sufficient. Your broker will help you determine what type of property you have and how often it needs an appraisal.
How Do I Get an Insurance Appraisal?
An insurance appraisal is an evaluation or assessment of a property’s value, condition, and marketability.
It is usually conducted by a qualified professional appraiser who will determine the value of your insured property and its replacement cost.
The result can be used for many purposes, such as determining the amount of your insurance deductible, determining how much you should pay for an insurance policy premium, or as proof that a certain amount would have been received if your property was sold at the time it was destroyed.
And having a company like RARE ART APPRAISALS doing this on your behalf while guiding you is a plus.
Having experts in place does help. Having an expert with you will likely get both parties on board because they’ll share the same goal: getting you out promptly so they can get back to their day-to-day lives!
