Copyright Brine Development Services, LLC 2012
Office: (813) Office: (813) 699-
Brine
Development Services, llc
Frequently Asked Questions
What is a Replacement Cost Valuation?
A Replacement Cost Valuation, (RCV) is a report that sets out the cost to rebuild a particular building in the event of a total loss due to an insurable cause such as fire. Replacement costs are construction costs that are current as at the time of the Valuation. A current RCV is an essential aid to you, your broker and your insurer in determining the correct insurance value for your building.
Why should you employ an Independent Replacement Cost Valuator?
The probability of accurate insurance coverage on older buildings (5 years or
older) is very low. It is estimated that less than 20% of buildings are correctly
insured. If you are over insured this will result in excess insurance premiums.
If you are under insured you may be required to pay a substantial portion of
any loss, sometimes resulting in re-
An independent valuator can provide you with a knowledgeable opinion of your building's value that is unbiased and is prepared based on your particular building style and construction techniques.
Why is the Replacement Value the only sensible measure when having my property insured?
The market value of a building is often confused with the Replacement Cost Value of a building. In the event of total destruction of a building, it must be rebuilt from scratch and for this purpose one would have to insure it for the actual cost of the building materials together with design, labor and other costs.
Citizens does not allow Independent Replacement Cost Valuations.
Now they have to! On April 30, 2012, the Florida legislature passed HB 1101 requiring Citizens Insurance to accept the lowest Independent Replacement Cost Valuation from any of three sources, provided the data was compiled within the previous 12 months and includes and itemized calculation. The sources can be:
- Any replacement cost software program, provided it is designed specifically for that purpose
- An evaluation prepared by a Florida certified or licensed real estate appraiser
- An evaluation prepared by a licensed general, building or residential contractor, or one from a licensed professional engineer.
Click Here for a Sample Replacement Cost Valuation Report
Replacement Cost Valuation (RCV)
Office: (813) Office: (813) 699-