Modern commercial building against a clear sky, symbolizing the importance of timely property valuation for insurance, investment, or financial planning purposes.

Good Question - When is the best time to order a commercial building valuation?

Good Question
April 27, 2025•1 min read

Short Answer:

Anytime after a commercial building has been completed or substantially rebuilt is a good time for a building replacement cost valuation.

The Top-10 Reasons for Determining a Building’s Replacement Cost:

  1. There is an upcoming commercial property policy renewal or new submission.

  2. It has been more than 3-years from the last valuation.

  3. Local construction costs have risen noticeably since the last valuation.

  4. There is a dispute over the replacement cost with the carrier.

  5. The structure with a new addition increasing the square footage.

  6. A Small Business Administration loan requiring a building valuation.

  7. A Mortgage lender requiring a replacement cost report to determine if the building is question is adequately insured.

  8. A National Flood Insurance Program policy requiring a building valuation.

  9. A county’s Property Valuation Administration requiring a building valuation.

  10. When there is a dispute with a claims adjuster over the amount of a total building loss.

Things for an Insurance Professional to Remember About Building Valuations:

  • A building replacement cost report is an estimate compiled by a qualified person and should not be considered as an exact amount.

  • In Centurion’s marketing area there are very few commercial insurance brokers that offer this service.

  • A replacement cost report submitted with a property insurance application to the carrier can be an importance factor in getting a competitive quote back from an underwriter.

  • We are confident enough on our replacement cost number that we show all of our calculations on paper.

 

For Additional Information Contact Rob at: (606)434-0739

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