Leverage these methodologies to maintain up-to-date property data and insurable values
For any organization with a large property schedule, maintaining accurate and up-to-date property data and values can be a challenge. However, providing your broker/insurer with recent valuation results and detailed property data can help them better understand your risk profile and potential for loss. In turn, this can help ensure your property is properly insured and in the event of a loss, you receive adequate support. Here are a few strategies for mixing value trending with onsite, physical inspections to maintain reliable data.
Divide your Property Schedule into Smaller Groups
Rather than have your entire property schedule appraised year after year, break it into thirds and appraise one third each year. In the off years, consider value trending. As long as your original data is solid, a couple of years of value trending won’t hurt.
Consider the Value of the Buildings and Structures on your Property Schedule
The properties with the highest insurable values should be a top priority for an onsite appraisal if one hasn’t been completed in a couple of years. Some of our customers have elected to have these buildings and structures appraised more frequently than the others on their property schedule. On the flip side, if the replacement cost on a shed or dugout is less than your deductible, you can consider value trending with little to no harm done.
Consider Susceptibility to Risk Events
Every building or structure on your property schedule is exposed to risk. However, some property may be more or less likely to experience damage due to a risk event. With that said, it’s important to ensure that the buildings in high risk areas (e.g. coast lines, fault lines, flood zones) have values and data that are accurate and up-to-date. If it’s been a few years, these should take top priority for an onsite appraisal.
While an onsite, physical inspection produces more current, accurate, and complete results than a desktop appraisal or multiple years of value trending, even we know that it’s not necessary every year for every building and structure on your property schedule. Apply the strategies above to determine the best mix for your organization.