INSURANCE APPRAISAL INFORMATION

Sedgwick | Valuation Services Division has performed insurance appraisals throughout the United States, Canada and the Caribbean, and has performed appraisals on hundreds of clubs. Prudent club managers and board members must ensure they have a dependable and accurate replacement cost for their structures and amenities in order to determine correct insurance coverage. Obtaining an independent third party professional appraisal accomplishes this.

WHAT IS AN INSURANCE APPRAISAL?

An insurance appraisal is a replacement cost analysis which provides an accurate estimate of the amount of insurance required to replace each structure and/or amenity exactly as it stands on the day the report was prepared. These values are provided to assist the club in determining the amount of insurance needed for each structure and/or amenity for which the club insures. Sedgwick | Valuation Services Division appraisers calculate each building’s replacement cost on a component-by-component basis from the ground up.

HOW ARE REPLACEMENT COST VALUES DERIVED?

The estimated replacement cost values reported in our valuations are derived through a number of methods. The primary method utilized for estimating the replacement cost in our Insurance Appraisals is provided through a software system called Timberline by the Sage Corporation. This estimation software is used by a large number of construction, engineering and architectural companies. The database with Timberline for estimating the replacement cost is RS Means. RS Means is an established and reputable construction data collection company which has been a prominent provider since 1940. The labor wage rates and material cost used are localized to the club’s location, and pricing is based by zip codes which ensures greater accuracy. Additionally, the database allows custom cost inputs from the marketplace furthering its accuracy. All of the replacement costs contained in our analysis include the contractor’s overhead and profit, all labor, taxes and insurance costs as well as general building conditions. In addition to this cost data, our appraisers have formed relationships in the marketplace with general contractors and architectural and engineering firms which are utilized in support of the cost data found in the Timberline software as needed.

WHY OBTAIN AN INSURANCE APPRAISAL?

Most club managers and board members believe that obtaining an insurance appraisal for their club is one of the best decisions they have ever made. The reasons for this are simple:

• Obtaining an insurance appraisal demonstrates due diligence on the part of the club manager and board members.
• The manager, board members and members have peace of mind knowing that the property is correctly insured.
• An insurance appraisal assists your agent in placing the property coverage with a carrier by providing documentation that underwriters need to write coverage.
• Obtaining an insurance appraisal prevents under-insuring, which puts the club at risk for not having adequate funds to rebuild in the event of a catastrophic loss, or over-insuring, which results in paying extra insurance premiums.
• Having an up-to-date insurance appraisal provides accurate values for coverage, eliminating the possibility of a co-insurance penalty in the event of a loss.
• An insurance appraisal provides a third party, unbiased valuation of the club’s replacement cost.
• If a loss occurs, a Sedgwick | Valuation Services Division appraisal along with all data acquired in performing the appraisal will be available to the client to expedite the settlement of the claim.
• All digital photographs taken at the time of the physical inspection are electronically archived for the client's use in the event of a loss.

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