Estimating real estate property value for Property Insurance

[connda]

Back in the US is was relatively easy to get an estimate of the value of your property by hiring someone to assess the property value.
I don't know anyone who does that here.

Anyway, I sort of got a wake-up call after the major earthquake in Turkey and Syria that has killed 40K people.
I'd like to purchase property insurance, but I honestly don't know the value of the property.  I could have figure it out 10 years ago, but we have done significant modifications to the property and have added a guest house and car port plus renovating the existing "Thai house" which wasn't much more than a cement two-bedroom house with cement floors before we started the renovations, and over the last 10 years I'm sure land prices have increased.

To purchase the insurance the insurer wants to know the property value and the value of the contents of the house.  I'm stumped.  I don't want to over-insure or under-insure. 

Any suggestion on how to valuate the property value as well as the home's contents???

[connda]

Mods - put this wherever it best fits as a topic.
Thanks.

[CharlieH]

REAL ESTATE FORUM more appropriate 

 

MOVED

[Patong2021]

Shouldn't you be looking at this as "Replacement Cost"? The  intent of insurance is to put you back to where you were before the loss.  Do an inventory of your household goods and then look at some of the home furnishing catalogues online and you will get an idea of the cost to furnish a bedroom, kitchen etc.  In respect to the house structure, ask a reputable builder for an estimate of the cost of rebuilding. If the house is 25 years old with original windows , doors etc. those items will be depreciated and likely worn out, so you need to estimate using current  cost to replace. 

If someone here suggest looking at the evaluation used to obtain a bank mortgage, never mind, because it is different than that used for insurance purposes. The bank takes into account land value.  Land remains after  a loss, so the value doesn't need to be considered for insurance.

[Etaoin Shrdlu]

It can be difficult to get property valued for insurance purposes in Thailand. You might wish to contact one of the loss adjustors here, perhaps Crawford or Sedgwick, and ask if they will do valuations for residential properties. If they can't, perhaps they can refer you to someone who will.

 

If you aren't able to find someone to do a professional valuation, you can submit values based upon your estimates.

 

Most homeowners policies will require the insured to report replacement value. RV is the estimated cost to repair or replace the lost or damaged property with like kind and quality. Check to make sure that the policy on offer is for replacement value. If you know a contractor, you may be able to ask what the cost would be to replace the buildings.

 

For furniture, fixtures, and other contents, you can make an inventory and find costs for identical or similar items either in stores or online. This can be a rather time-consuming task as one often has many more possessions than one thinks. But if you do this, you'll have a good basis for submitting proof of loss in the event you need to file a claim.

 

Land is not insurable, so do not include the value of land in the values you submit to insurers.

[connda]

15 minutes ago, Etaoin Shrdlu said:

Land is not insurable, so do not include the value of land in the values you submit to insurers.

That would have been my first mistake.  ????

15 minutes ago, Etaoin Shrdlu said:

If you know a contractor, you may be able to ask what the cost would be to replace the buildings.

And this is a great idea.  I'll have my wife contact the guy who has been doing the general contracting for us over the years (a man in our village who sets up my wife's building projects for us) and have him give us an estimate for replacement value of the houses and outbuildings.

What about things like the concrete walls around our property?  Can those be included?  Are there things that can't be included in the valuation?  For example, if there is an earthquake and my carport fall on the car and motorcycle, can these be included in the valuation? 

Edited February 20, 2023 by connda

[Etaoin Shrdlu]

24 minutes ago, connda said:

That would have been my first mistake.  ????
 

And this is a great idea.  I'll have my wife contact the guy who has been doing the general contracting for us over the years (a man in our village who sets up my wife's building projects for us) and have him give us an estimate for replacement value of the houses and outbuildings.

What about things like the concrete walls around our property?  Can those be included?  Are there things that can't be included in the valuation?  For example, if there is an earthquake and my carport fall on the car and motorcycle, can these be included in the valuation? 

Outbuildings and carport awnings can usually be insured. Check to see what the prospective policy says about things like foundations, driveways and perimeter walls. Some policies may exclude things like this.

 

A homeowner's policy will exclude damage to motor vehicles, so if you are concerned about damage to your car and bike as a result of a fire or other peril occurring while they're parked at your home, check the auto and bike policies you already have. If this is an issue, you may need to upgrade them to get this cover.

 

One thing that comes up frequently is that of electronics, jewelry, fine arts, antiques and other high-valued items. Insuring these items can be expensive and there may be rather low limits on offer from insurers for such items. Again, check with the proposed policy to see how the insurer handles these items and what your declaration requirements are and what restrictions to cover may exist.

 

Edited February 20, 2023 by Etaoin Shrdlu

[yeahbutif]

The other thing when I inquired they asked sq m of property.... Again is does this mean floor area only..  but as we have area outside like a car port outside kitchen ect would this area be say any tile and concrete floor areas or roof areas.. as like most things not clear.

[Etaoin Shrdlu]

4 minutes ago, yeahbutif said:

The other thing when I inquired they asked sq m of property.... Again is does this mean floor area only..  but as we have area outside like a car port outside kitchen ect would this area be say any tile and concrete floor areas or roof areas.. as like most things not clear.

Usually this means the floor area of the dwelling itself, but you should clarify with the insurer as to exactly what they expect you to declare. 

 

If you have external items like carport awnings, outdoor kitchen and the like which are not typically included in dwelling measurements, you may need to state so and give values or dimensions in addition to the area of the house itself. This is especially true if they were built as add-ons.

 

The more detail you provide, the less the chance that an insurer can try to deny a claim based upon non-declaration of property or values.

 

 

[observer90210]

What could be considered as the most reliable company in Thailand ?

 

Based on experiences on how efficiently the claims are handed ? Of course depends also in which city.

[Etaoin Shrdlu]

31 minutes ago, observer90210 said:

What could be considered as the most reliable company in Thailand ?

 

Based on experiences on how efficiently the claims are handed ? Of course depends also in which city.

I would suggest you talk to an insurance broker and ask which insurers offer the best coverage at the best price. There can be quite a bit of variation in coverage levels and pricing as well as in attitudes towards paying claims.  

 

In general, the local operations of foreign insurers tend to be more professional in their conduct and claims attitude. But use a broker. Don't try to sort this on your own.