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#1853998 - 09/19/13 08:48 PM Condo - how to determine RCV?
Likes to Comply Offline
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In the mountains
I'm being told, and maybe this is correct, that an appraiser cannot provide a RCV on an individual condo/townhome that is part of a building. Is this true?

If we cannot get a RCV from an appraiser on an individual unit, then how do we determine the RCV? Do we use the value from the Hazard policy? Do we just accept the value stated on the RCBAP?

What if you have an internal appraiser that creates his own calculation of the RCV of the whole building, but it is about $100,000 lower than the Hazard Condo policy, would you be inclined to use the appraiser's calculation or the Hazard Policy?
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#1854075 - 09/20/13 03:32 AM Re: Condo - how to determine RCV? Likes to Comply
rlcarey Offline
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rlcarey
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Galveston, TX
What if you have an internal appraiser that creates his own calculation of the RCV of the whole building

Find a new internal appraiser as they have no reason to do such a thing and unless they are a very highly skilled appraiser, they most likely do not have the training, background or knowledge to develop such an analysis.
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#1854090 - 09/20/13 12:27 PM Re: Condo - how to determine RCV? Likes to Comply
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In the mountains
Well, in this case, he is a skilled licensed appraiser, someone who did this for a living and we hired to work for the bank in-house.

I looked at a few threads and it seems that some only rely on the RCV that is stated on the RCBAP. Is this OK. Typically for everything else we rely on RCV from an appraisal. But I'm being told it is not possible to get RCV on a single condo/townhome unit. Is that a true statement?
Last edited by Likes to Comply; 09/20/13 12:28 PM.
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#1854101 - 09/20/13 12:45 PM Re: Condo - how to determine RCV? Likes to Comply
RR Joker Offline
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The Swamp
These days, the law requires a RCBAP to state 100% RCV. It's considered reliable and all you need. If they are insuring for less than the stated RCV, that's where you need to did deeper and consider concerns surrounding additional insurnace and potential <80% penalties at time of loss.

(and yes, RCV on a single unit is not logical)

Last edited by RR Joker; 09/20/13 12:46 PM.
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#1855909 - 09/26/13 04:54 PM Re: Condo - how to determine RCV? Likes to Comply
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In the mountains
Thanks for your help!
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