What is a replacement cost evaluation?+
It estimates the current cost to reconstruct the included insured building improvements using stated assumptions for materials, labor, contractor conditions, professional fees, demolition, debris handling, and other applicable factors.
Is replacement cost the same as market value?+
No. Market value reflects what a property may sell for and includes land and market conditions. Replacement cost focuses on reconstructing the included improvements and typically excludes land value.
How often should a Florida condominium update replacement cost?+
Florida condominium law states that replacement cost used for adequate property insurance must be determined at least once every three years at minimum. Boards should confirm the current requirement and acceptable report format with legal counsel, the association’s insurance adviser, and carrier.
Is this a reserve study or milestone inspection?+
No. A reserve study addresses long-term funding for component repair and replacement. A milestone inspection addresses structural safety requirements. A replacement cost evaluation serves a different insurance-value purpose.
What documents should the association provide?+
Helpful records include plans, prior evaluations, statements of values, building schedules, renovation and roof information, amenity inventories, insurance documents, and association responsibility information.
Does the evaluation include every unit-owner improvement?+
The included property depends on the agreed scope, available records, applicable insurance responsibility, and observable conditions. Unit-owner finishes or improvements should not be assumed included unless specifically identified.
Can apartment buildings receive a replacement cost evaluation?+
Yes. The service can be scoped for apartment buildings and other eligible multi-unit properties, subject to building information, access, and the intended use of the report.
