Edition 2020 Ninth edition

5. Reporting
5.1. 
The valuer must undertake an assessment and provide an adequate description 
of the following:
5.1.1. 
General reporting
•
The location and use of both the subject property and adjacent property; as 
well as the address of the beneficiary of the insurance contract;
•
The accommodation/space, number of floors, services, and access;
•
Internal and external facilities including a record of construction details, di-
mensions, fittings and use, supported by a comprehensive photographic 
record. Specific regard should be made to materials or features not commonly 
found in similar property or where the replacement costs would be higher than 
normally incurred;
•
Relevant planning permissions, licenses and approvals;
•
The condition and state of repair of the property, including an assessment of 
any deterioration arising from damage, age, defects or overdue repairs. In some 
cases such conditions will result in deductions in the insurance compensation;
•
In cases where the insured is unable to recover input VAT charges, the valuer 
must clarify whether it is possible under the insurance policy, or national law, 
to increase the assessed costs correspondingly.

---

130
I.B. - EVGN 3: Valuation for Insurance Purposes
European Valuation Standards 2020
5.1.2. 
Specific to Insurable Value
•
The specification of reconstruction costs together with necessary additional 
costs associated with reinstatement.
5.1.3. 
Specific to damages
•
The cause of the damage must be stated. However, arson is a criminal matter 
and must be considered by the police or other appropriate agents. The under-
lying causes of the damage need then not be reported, while the fact that this 
is under investigation by other agents must be included in the report;
•
Extent of the damage;
•
Repairs and cost of replacement and contractual conditions regarding market 
price for construction work necessary to repair the damage;
•
The specification of reconstruction costs together with necessary additional 
costs associated with reinstatement. The cost of improvements must explicitly 
be stated in the report or, alternatively, explicitly be excluded;
•
Breach of special provisions in the insurance contract, identification, causa-
tion and in some instances liability and regress;
•
Reservations and mandatory limitations.
6. Special provisions and recommendations for damage assessment
A typical list of procedures is as follows:
•
The assignment is acknowledged;
•
The representative of the insured is contacted without delay;
•
Inspection is carried out with all involved parties present;
•
The damaged property and the damage to it are recorded;
•
The cause of the damage is established;
•
Any disagreement by the insured party with the valuer's conclusions is reported;
•
The underlying cause of the damage is described;
•
For natural disasters the following is observed:
•
Records from the time of the incident regarding wind, wave height and 
recurrence, man-made structures etc.;
•
Evaluation of factors such as "what should the construction be able 
to withstand in accordance with regulatory building rules at the time 
of construction?";

---

European Valuation Standards 2020
I.B. - EVGN 3: Valuation for Insurance Purposes
131
•
If the property is not in compliance with building regulations is there a re-
lationship between the non-compliance and the extent of the damage?;
•
Is the extent of the damage a result of a lack of maintenance and/or 
wrong construction design?;
•
Reasons for faulty designs and/or construction, and who was responsible.
•
The need for any immediate measures to safeguard the property and avoid 
further damage is reported;
•
The damage report contains a description of repair work needed, followed by 
a calculation of the costs;
•
In some cases, the inspection and the report cannot be completed immediately 
and an interim report is produced to estimate budgetary figures for costs;
•
In some cases, recording of the parties' agreement on procedures for demoli-
tion to determine the exact cause and extent of the damage;
•
A method of repair is recommended;
•
The Final Report is produced.

---

---

European Valuation Standards 2020
I.B. - EVGN 4: Apportionment of Value between Land and Buildings
133