There are plenty of reasons why an older building can have significant value: it comes down to architectural style, age, construction process and community significance. Without historic property appraisals, there’s no way to properly tell how much an old building really costs. Here’s a closer look at the appraisal process and how it can shed greater light into the true value of a historic property.
Historic Insurance Policies
It takes a unique craftsman and extra time to fix a damaged historic building, and finding the materials needed can prove to be a difficult process. On top of that, you have to think about getting professional services with recertification and tax benefit recovery. An insurance policy has to encompass everything about the cost of rebuilding. You want the property to look the same as it did prior to the damage that happened. When that can’t happen, it’s important to get the building looking as close to the original as possible. A standard insurance policy doesn’t estimate the value of historic properties, however, meaning that many properties can be underinsured. This is why it’s so important to have a historic insurance policy in place that not only has the right coverage, but the proper guidance.
Why You Need An Expert Appraiser
If you want to keep your historic property adequately protected, then you’re going to want an appraiser to look at your building. They are trained specifically in this type of insurance evaluation. Appraisers have to know things like that using masonry cement instead of lime mortar can severely damage historic brick or that the moldings you might need aren’t always found at building supply centers. Defining unique historic features is highly research-based and quite extensive. It’s something that can’t be done with the systems used to value modern buildings.
An appraisal process consists of five phases: the preliminary phase, onsite assessment, research, valuation and reporting. All of these things help find the true value of a historic property.
A Historic Valuation is a Puzzle
Since every property is different, what makes it historic can differ drastically. A historic property appraisal helps you find out the very essence of your property. It’s something that can’t be done with just anyone. Each structure can include some features that make things strange for an appraiser. Think of it like assembling a puzzle: all of the pieces are intricate and play a significant role. Determining replacement costs of materials that don’t exist anymore is one of the things that you’ll run into as a historic property owner; this is something that all appraisers are trained to handle. Without an appraisal, you can’t really insure the value of your property accurately. This is why it’s so important to have historic insurance.