Expert Reserve Services, Inc



Replacement Cost Valuations

A replacement cost valuation simply is what the cost would be to replace (rebuild) the structures and site additions on the property. This has nothing to do with the price you may have paid, the real estate value or the taxable value.
0 %

Are under-insured by an average of 27 percent.

-CBS News Special Investigative Report

Up To
0 %

of commercial & residential properties
are at least 30% under insured.

-American College of Public Insurance Adjusters

We do not take into consideration the value of the land.
The replacement cost is what the price would be to the clear structural debris, clean and prepare the site and reconstruct the building or home as it currently is. By knowing this, the client will have the correct amount that it should be insured for. Most people do not know that it is the responsibility of the insured to provide the insurance company with the correct amount that the property should be insured for. When you sign the insurance application, you are guarenteeing the insurance company that you have determined the full replacement cost of the building and are insuring it for that amount.

In the event of an insurance claim, most people find out that they are badly under insured.


Florida law makes it mandatory that all residential condominium associations have an independant replacement cost valuation conducted at least every 36 months – FS718.111(11)a. Failing to do so is a violation of Florida statute and can fined up to $5,000.


Currently, Florida law does not make it mandatory to have replacement cost valuations conducted. However, it is still the Board of Directors legal fiduciary responsibility to properly insure the association’s assets and property. The only way to correctly do that is to have a regular insurance appraisal (re-placement cost valuation) conducted.


Some of the most under insured buildings are churches or other houses of worship. They have unique components that are often overlooked – pews that are attached to the floor, steeples, speaker systems, video components and organ systems just to name a few.