The article idea was developed after the various tornadoes and flooding disasters many areas of the U.S. recently witnessed. Given the amount of property loss from these natural disasters and being in so many different geographic parts of the country, it is important for appraisers to be prepared to work with clients and insurance groups. Bob's P4A article, Disaster Appraising: The Value of Preparation gives some good insight into the process.
Bob writes
To read the complete article by Bob Goldberg on the P4A site, click HERE.The recent tornadoes and flooding from the heavy rains in the South, especially the damage wrought by the overflowing Mississippi River and its tributaries, conjure up my memories of appraising after Hurricanes Katrina in 2005 and Gustav in 2008. No matter how experienced an appraiser you are, nothing can prepare you completely for appraising among the sights, sounds and smells of the complete devastation, left behind by a major weather-driven disaster. At the time of Katrina I had had twenty-five years of experience as an appraiser of antiques and residential contents and had handled numerous fire and flood cases, but the sheer number of flooded homes and the level of destruction was overwhelming.
One of my first post-Katrina appraisals brought me to an upscale home in a suburb of New Orleans, not far from the levee break that caused the inundation. This home had taken in over eight feet of Lake Pontchartrain water, and the client’s furniture had fallen to pieces and was lying in heaps on the floor. I had to determine age, style and wood from the water-soaked remains. Lamps, china, crystal and other ruined decorative objects were stacked in rows outside. These conditions were not uncommon in the aftermath of Katrina.
Fortunately, in this case, the client, a man in his 40s, was relatively composed - his family was living elsewhere, and he was trying to make order out of the mess of their lives and home – but this is not always the case. The ability to successfully interact with clients who have been victims of natural disasters is an important attribute for an appraiser. They likely will be emotionally distraught, so try to be sympathetic and empathize with their predicament. People in these situations are usually happy to see the appraiser and are extremely cooperative, and it is important to ask for information that would assist in the valuation of their property. For instance, it is important to learn what type of insurance they have. If there are insurance policies, hopefully they are available to guide you to the proper valuation basis for the appraisal report. You will also want to determine if there is a flood policy in place. The Federal flood insurance program has limitations on what property is covered, and it requires that contents be valued at actual cash value (replacement cost less depreciation), not replacement cost. If there are antiques involved, try to determine if they have been appraised and insured in the past. You will also want to know if there are any receipts or purchase records available. Having all of this information prior to arrival at the site will save time. When insurance companies or independent adjusters hire you, they can usually provide you with all the necessary background information before the visit to the appraisal location.
No comments:
Post a Comment