Insurance appraisal FAQ

Coverage Estimate provides independent insurance appraisals and replacement cost evaluations. We estimate what it would cost to rebuild a property after a major loss so associations and their insurance advisors can set accurate master policy limits. See all six services.

Mainly condominium associations, HOA boards, community associations, property managers, insurance agencies and brokers, and large residential communities. The Who We Serve page explains how each group uses the report.

Nationwide. We have evaluated 2,400+ associations and serves all 50 states with licensed appraisal specialists.

Use the contact form or email appraisals@coveragestimate.com with the property address, number of buildings and your renewal date. We respond within 1 business day.

An independent estimate of what it would currently cost to reconstruct your buildings after a total loss. Associations use it to set accurate limits on the master insurance policy.

No. Market value includes land and reflects buyer demand. Insurance value should be based on replacement cost alone, meaning what it takes to rebuild the structure.

A market value appraisal estimates what a property would sell for, typically for a sale, refinance or tax purpose, and relies on comparable sales. An insurance appraisal ignores sale prices and land, and estimates the labor, materials and related costs to rebuild the insured improvements.

No. A reserve study plans for the repair and replacement of components as they wear out over time and helps set reserve contributions. An insurance appraisal estimates the cost to rebuild after a sudden loss. Some figures overlap, but the purpose, scope and assumptions differ.

Our analysis covers the building components themselves, plus demolition and debris removal, contractor overhead and profit, professional fees, and applicable building code requirements that would apply to a rebuild. The glossary defines each term.

It depends on what your master policy is responsible for. Some declarations make the association insure only the structure and common elements, while others extend to original unit finishes or improvements. We confirm the scope from your governing documents during intake. Requirements vary by declaration and by state.

It is the ratio of your insured value to your actual replacement cost. A low ratio means you are underinsured and may face a reduced claim payout after a loss.

Coinsurance is a policy clause that reduces claim payouts proportionally when a property is insured below the required percentage of its replacement cost. The example below shows how the math typically works.

Automatic increases, often called inflation guard, apply a percentage to the existing limit. If the starting figure was wrong, or if construction costs in your market rose faster than the factor, the gap carries forward and can grow every year. They also do not capture renovations or additions.

Generally, a property insurance claim pays the cost of the covered loss, not the policy limit, so carrying a limit well above replacement cost usually means paying premium for coverage you cannot collect. An accurate appraisal helps avoid both underinsurance and overinsurance.

Some carriers will remove or suspend the coinsurance clause, through an agreed value endorsement, when they receive a current, documented valuation. Whether that option is available, and what documentation it requires, varies by carrier and state. Your agent or broker can confirm.

Building plans if available, the unit count and configuration, any prior appraisal, and access for a site inspection. We handle the rest. The full checklist is on How It Works.

Most engagements are completed in 10–15 business days from site inspection to final report delivery.

Many carriers and reserve professionals recommend a full appraisal every 3–5 years, with lighter updates at renewal in the years between.

Yes. A site inspection is the second of our four steps. It verifies construction type, systems and finishes, and produces the photo documentation included in the report.

That is common, especially for older communities. Plans speed things up, but the site inspection documents what is actually built, so missing plans do not prevent an appraisal.

Usually the community manager or one designated board member. A single contact makes it easier to gather documents and coordinate access to roofs, mechanical rooms and amenity buildings.

A component-level cost breakdown, a methodology summary, local labor and material pricing citations, photo documentation from the site inspection, and a signed independent professional certification.

The board and management, and your insurance agent or broker. The report is ready to hand to the carrier as is, and agents typically use it to update the statement of values.

Reports are prepared to be handed directly to carriers and to show how every figure was reached. Underwriting decisions, however, are always made by the carrier.

Share it with your agent before renewal and discuss adjusting the building limit and any related endorsements. An insurance-to-value analysis can help quantify the gap and the options.

A calculator is useful for a quick, directional check, and ours are free on the insurance calculators page. It cannot inspect your property or produce a signed report, so it is not a substitute when you are setting master policy limits.