This Is NOT The Time To Appraise Your Tangible Assets

Picture This Scenario

A fire breaks out at your property and within minutes a major portion of the building and its contents are lost. The fire department responds promptly, but many of the assets not lost to fire are lost to smoke and water damage. Your initial reaction would be to contact your insurance broker. When they report the claim to the insurance company, an adjuster is appointed to handle the claim. The adjuster will ask questions such as; How much is the property worth now in terms of current construction? Without an up-to-date appraisal, you could be scrambling to try to establish replacement costs for your assets and possibly find yourself under insured.

You Are Responsible

In the event of any loss where an insurance claim needs to be processed, the onus is always on you, the insured party, to provide “proof of loss”. An appraisal provides that proof accurately and immediately, when kept up-to-date.


Do You Know The Current Value Of Your Assets?

If you are under-insured and suffer a major loss, this could result in dire consequences. Many property policies contain a co-insurance penalty. Alternatively, if you are over-insured, you are paying for extra insurance you cannot claim. An accredited appraiser can determine the replacement cost of your building and content assets, in accordance with your insurance policy.


Asset values are changing continuously

 Inflation can increase the replacement cost of your building;
 Certain building systems become obsolete;
 Buildings are expanded and renovated;
 Imported components (such as HVAC equipment) are subject to foreign exchange fluctuations;
 Machinery and other equipment are replaced, sold off, retired, or become obsolete (particularly with Information Technology).

READ: Cost Appraisals vs Value Appraisals – What Are The Main Differences?

What are the Benefits of an Insurance Appraisal Program?

 Up-to-date appraisal reports allow for quick loss settlements;
 Insurance premiums are based on investigated, not arbitrary, values;
 A reputable appraisal company backs what it says with professional liability insurance;
 An appraisal avoids any under-insurance penalties.


Did you know?

• Suncorp Valuations has been providing insurance valuations to its clients across the globe since 1960;
• We are the insurance appraisers of choice for some of the largest insurance companies in the world;
• We have expanded our service line to include value added professional services in the areas of loss prevention, including but not limited to playground audits, fleet surveys, custom premises liability and crime surveys.



Cannabis legalization, will it impact Real Estate

With many North American jurisdictions legalizing cannabis, we see inquiries from our clients as to what will be the impact of legalization on Real Estate. Will it affect the rents that can be charged on property? Will it affect the value of residential homes? What if you don’t want a cannabis retailer in your building, what options do you have? As an investor, are there opportunities in Real Estate given these changes? The predominant answer at this time is “only time will tell”.

Effect of cannabis legalization on real estate

What’s Happening with Real Estate in Colorado?

Given that the legalization is federal legislation with provincial regulations coming, we have no basis of comparison in Canada. The closest example we can reference is select States in the US that have moved to legalization in recent years and the information from their Real Estate Markets is still relatively fresh. Economists in the US have studied the impact that legalization had in Colorado (January 2014) relative to residential Real Estate. The results paint an interesting picture of higher than average increases in residential home values in areas near cannabis retailers, however, the exact reasoning is hard to quantify given the vast number of market dynamics in play and the limited window of time to analyze.

What we do know at this time is that many areas across North America are looking at or moving to legalization. As per the Colorado experience this means there will be real estate demand brought on by industry players such as wholesalers, retailers and home growers. We know that wholesalers and retailers will have a demand for space.

Owning Property in the Proximity of Cannabis Retailers

Property owners who choose to participate in the industry at some level will be tested as there will be unique regulations and limitations around all aspects of the space, including considerations for location, zoning, security, etc. We would also suggest that significant “fit-out” to these spaces may be required to make spaces both compliant for use in addition to being functional and inviting. There may be opportunities for property owners to capitalize if their properties meet the requirements for use by cannabis retailers as the level of investment required by the tenant might give assurances of longevity with relocation being expensive to tenants. Even more likely is that these retailers and wholesalers will want to own spaces versus rent given the anticipated investment to have the space meet requirements, which might mean owners of Real Estate in highly desired areas, could see motivated parties knocking.

Change is Coming. Property owners can profit taking the high road

Those who know the local regulations combined with some opportune luck in having a property that meets the requirements will have an advantage in capitalizing. Whether you stand for or against the legalization, change is coming and there will be those in the Real Estate investment sphere who are “high” on making the most out of the new rules.

Does this subject interest you? For more information, contact Devin Baker, B.Comm., Manager, Business Development at

About Suncorp Valuations

Suncorp Valuations is a leading provider of independent valuation, appraisal, and advisory services. Suncorp’s valuations and appraisals have been relied upon by leading insurance companies, public and private companies, property owners and managers, tax authorities, accounting bodies, courts, municipalities and financial institutions from all over the world.

Our valuation and appraisal staff consist of professionals that are highly accredited in the fields of engineering, real estate and equipment appraisal, business valuation, risk management and loss control. Our multi-disciplinary, multi-regional and multilingual staff take an interactive team approach and have been involved in some of the most complex valuation assignments across the globe.

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