Once an organization invests in a structured property insurance appraisal program, annual updates offer a cost-effective way to maintain the integrity of insurable value data. Our professionals apply standard construction cost trend factors to appraised building valuations on an annual basis, which:
- Assume static construction practices
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Do not consider modifications to the original structure
- Remain accurate for approximately five to seven years
In addition, we update appraised personal property values using industry-accepted cost trend sources, including:
- Marshall Valuation Service
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FM Global's Industrial Cost Trends
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The Bureau of Labor Statistics of the U.S. Department of Labor, Producer Price Index
- Handy-Whitman Index of Public Utility Construction Costs
Finally, we account for capital acquisitions and retirements through:
- An on-site visit from one of our professionals
- Application of client-supplied current-year capital asset activity (additions, disposals and retirements)
