Insurable Value Appraisals: A Vital Component of Your Association’s Disaster Management Plan

June 13, 2023

“Insurable Value Appraisals: A Vital Component of Your Association’s Disaster Management Plan”

By Scott Tew, MAI

The 2022 hurricane season forcefully reminded us that disasters are indiscriminate; they strike anytime, anywhere. The essence of preparedness lies in not just expecting the unexpected, but also planning for it meticulously. For owners’ associations, this includes ensuring the welfare of residents, documenting all association-owned property with timestamped photographs and videos, and more importantly, carrying out insurable value appraisals.

The Florida Condominium Act mandates associations to arrange an independent insurable value appraisal triennially. Beyond this statutory requirement, however, it is universally acknowledged as sound practice for associations to perform such appraisals regularly. This ensures they maintain adequate insurance coverage and can promptly adjust to fluctuating market conditions. Certain insurers, like Citizens Insurance, have taken these measures a notch higher by insisting on triennial inspections, as well as annual desktop evaluations to keep up with ever-changing construction costs.

Florida’s susceptibility to hurricanes, tornados, fires, thunderstorms, and lightning strikes necessitates its associations to take preemptive measures. An insurable value appraisal plays a pivotal role here, helping the homeowners’ associations accurately calculate the replacement costs of buildings, common areas, and other assets. This, in turn, aids in determining the appropriate level of insurance coverage to purchase, thereby safeguarding the financial stability of the association.

Scott Tew, MAI, serves as the Senior Managing Director at Valbridge Property Advisors | Orlando. For further insights on insurable value appraisals, reach out to Scott at or call at 407-841-4322.

Editor’s Note: A version of this article first appeared in the June issue of the Florida Community Association Journal (FLCAJ). Established in 1987, FLCAJ has been a steady source of news and indispensable information for operators of condominiums, homeowners associations, cooperatives, and other multi-unit communities each month. Read the June issue here.


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