Appraisal Services

Appraisal Services

The Value of Knowing What It’s Worth

Protecting your company’s physical assets can be more complex than it seems. It requires knowing precisely what they’re worth, at any time, under any market condtions. Start with a property value appraisal from one of our contracted vendors.

This confidential service is dependable, accurate and can be conducted anywhere in the world you do business. Our in-house property value experts and our contracted vendors work with you to determine replacement-cost values for buildings and personal property. Here’s what you can expect during the appraisal process:

  • We will work with you to ensure the valuation assistance requested is applicable to your needs
  • Calculation of replacement values of buildings, and other structures, adjusted to reflect regional labor and material costs
  • Equipment inspection, to determine equipment replacement costs 

The appraisal is a powerful tool to ensure the accuracy of reported property values to FM Global. The accuracy of values is important in order to make effective risk management decisions.


Why Use FM Global’s Appraisal Services?

  • Tailored services to meet your specific needs
  • The appraisal is based on the actual property defined by the insurance policy
  • We work with you to resolve any questions 


Comprehensive Appraisal Reports

Regular Field Appraisal
This type of appraisal is the standard service offering and is based on an in-depth visit to your property and consultations with your key personnel. You’ll receive a detailed report, with property described and valued to replacement cost new. Local construction material costs, local labor costs, construction fees, and other factors are all taken into account. The appraisal report may also include:

  • Individual listing of all building structures
  • Detailed listing of all yard improvements and betterments
  • Detailed descriptions of all machinery and equipment valued above a certain replacement cost new threshold


How We Determine Replacement Value

Value Determination
Building costs are regionally adjusted for local labor and material price variances.  Cost sources include publications of building cost information from national and international construction estimating services. The determination may involve a review of facility drawings and other documentation.

Equipment costs are determined by researching original equipment manufacturers’ (OEM) pricing and other third-party price resources, to which allowances for shipping, installation, and infrastructure are added.

Valuation Methodology
The replacement value of buildings and other structures is determined by the same methods used by contractors to develop their estimates and bids, with costs regionally adjusted for local labor and material price variances.

The contracted appraiser will list enough information about the contents so that values may be accurately researched.  When needed, a determination of replacement value might involve document review and consultation with knowledgeable plant staff.


To learn more about our comprehensive and customizable suite of services, contact your FM Global engineer or client service team.