The California JPIA strives to provide members with the most comprehensive property coverage. Agency assets, whether owned or in the member’s care, custody, or control, must be reported in the property schedule as accurately as possible. To that end, the Authority is working with CBIZ Valuation Group (CBIZ), a trusted leader in property valuation, to conduct appraisals for properties valued at $1 million and above for participating property program members.
CBIZ has been an established business partner since 2019, when they conducted comprehensive onsite appraisals of over 5,000 member locations, contents, and land improvements to ensure that properties were reported at accurate values.
Beginning the week of September 11 through the month of December 2023, CBIZ will contact members to schedule your agency’s property appraisal(s). We ask that members make every effort to respond within 10 business days and accommodate the CBIZ schedule requests, as assessments are scheduled geographically to make the best use of their time in the area. It is anticipated that CBIZ will be on-site for one to five workdays, depending on the number of member locations to be appraised. There is no additional cost to your agency for standard appraisals. Additional services, such as appraising locations under $1 million or historical buildings, are available to members at a negotiated rate.
Below is a summary of what members can expect during the appraisal process:
- Opening Meeting: A representative from CBIZ will begin the appraisal process with an introduction, outlining the purpose of the visit and addressing any questions you may have.
- Reviewing Your Property Schedule: CBIZ will review your agency’s current property schedule, ensuring it accurately represents your owned, leased, and rented properties valued at $1 million and above. Members should make any necessary changes to their property schedule identified during this meeting.
- Navigating Property Details: Provide property information such as addresses, square footage, and construction/renovation dates, if applicable.
- Guided Building Tour: Expect a brief tour of each location as CBIZ captures data through measurements and, when necessary, blueprint reviews. Digital photographs will be taken to complement the information gathered.
- Closing Meeting: A final session ensures all necessary locations are appraised and all required information is provided, concluding the on-site appraisal visit(s).
If you have questions or need assistance, contact Insurance Programs Manager Jim Thyden.
Appraisal FAQs
Q. What kind of documentation will be provided when the appraisals are completed?
A. Members will receive a final Appraisal Report, which includes appraisal values and detail notes on each location. Members will also receive Value Comparison and Value Variance documents comparing the values from before and after the appraisal.
Q. How is the Building Insurable Value calculated for each structure?
A. A variety of sources are used, including CoreLogic, Marshall and Swift, RS Means, actual construction documentation, and other proprietary data to develop the Building Insurable Value for each structure. Building construction components that are collected during the site visits, locational factors, architect fees, and overhead and profit costs are included in the insurable value. Items such as landscaping and infrastructure (underground piping, wire, site clearing, etc.) are excluded from the value.
Q. Will member property schedules be updated automatically?
A. Upon completion, appraisal reports will be sent to members. Members will have two weeks to review the reports and provide feedback. Following the review period, Alliant will import the new appraisal data into AlliantConnect.
Q. Why doesn’t the Building Insurable Value from the appraisal report match the Real Property value within AlliantConnect (post-appraisal)?
A. Two separate values are used to determine the real property value, the combination of the Building Insurable Value and the Site Improvements. These two values are added to calculate the Real Property value in the system.
Q. How is content value determined for each location?
A. The appraisal process does not determine the content values for locations. These figures are carried over from the current content values for each location as reported by the member in their property schedule.
Q. Why do my actual project cost and renovation cost differ from the Building Insurable Value?
A. Actual project costs often include items that are not considered insurable. These items may include infrastructure, site clearing, land purchases, higher-end contents, and antiquities. Additionally, the appraisal date impacts the Building Insurable Value. Project costs may be inflated based on labor shortages and the availability of certain construction materials. Similarly, renovation costs may include debris removal, asbestos abatement, and modernization costs. These items increase the cost since the construction companies are working within restricted parameters (footprint of the building) and may require specialists that are not necessarily needed when constructing a building from the ground up.