Frequently Asked Questions
Q: Why is it important that living area, garages, porches, terraces, etc. be appraised separately with specific calculations shown in the appraisal report?


A:  Townsend Appraisals carefully calculates and provides you with the values for all of the varied areas of your project. The construction costs for these areas differ significantly, so it is essential to cost them separately to avoid being over or under-insured.


Q: Why is it important to hire a state certified/licensed appraiser?


A:  If the appraiser is not state certified/licensed, the only way to register a complaint is through client litigation. State certified/licensed appraisers are regulated by the Florida Department of Business and Professional Regulations. A state certified/licensed appraiser must also conform to the Uniform Standards of Professional Appraisal and take ongoing continuing education courses to maintain certification. 

According to William D. Knepper, President of Collier Insurance Services, "The Florida Condominium Law (Statute 718) holds directors responsible for maintaining adequate property insurance for the common property including buildings of the association. The only way a director can safely meet this obligation is to obtain an appraisal on a regular basis by a certified appraiser." 


Q: What determines the Hazard Insurance value for Condominiums, Homeowner Associations (HOA) and Cooperatives?


A:  Townsend Appraisals provides a value for Hazard Insurance so you will have an accurate assessment of the insurable replacement cost value with applicable exclusions. This means you will be sure to have adequate insurance coverage without being over-insured. According to the 2003 Florida Statutes for Condominiums, Hazard Insurance does not include:

  • Floor coverings
  • Wall Coverings
  • Ceiling Coverings
  • Electrical Fixtures or Appliances
  • Air Conditioners or Heating Equipment
  • Water Heaters
  • Built-in Cabinets and Counter Tops
  • Window Treatments including Hardware


Q: What determines the Flood Insurance value for Condominium Homeowner Associations (HOA) and Cooperatives?


A: Our estimated values for Flood Insurance are based on guidelines from the Federal Emergency Management Agency (FEMA).  Estimated values for Flood Insurance include:

  • All floor, ceiling and wall finishes
  • All electrical fixtures, appliances, air conditioning, water heaters and built-in cabinets, counter tops and window treatments (including hardware)
  • All foundations, excavation, piping below ground and site work


Q: What about depreciation? Is it included in the values you determine for Flood and Hazard Insurance?


A: Depreciation does not apply for Hazard Insurance:  Replacement Cost Values (RCV) are provided.


Flood Insurance, underwritten by the U.S. government, is available for the total building up to a maximum of $250,000 per unit. It follows that a four-unit building could be covered for a maximum of $1 million. Additional flood coverage for the total building can be obtained on the open market from the excess and surplus lines market, which may use the depreciated value referred to as actual cash value (ACV).

For more information on Hazard and Flood Insurance, view an article by Bob Townsend that recently appeared in the Naples Daily News.

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Q: Do you charge an additional fee to provide flood insurance values?


A: No, we do not. 


Q: Do you offer an annual update service?


A: Yes. We recommend that our clients sign up for our scheduled annual update program. The suggested cycle for the program is a six year period with the initial inspection of the facility considered to be year one. For the next five years an annual update is provided, assuming no changes in the facility except normal maintenance and depreciation. If changes have occurred, an inspection will take place and will be quoted accordingly. New appraisals of previously inspected facilities will receive a discounted inspection. This cycle of update appraisals ensures that you always have a current insurance valuation on hand. Click HERE for more details.