Building Replacement Cost Value: Difference between revisions
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'''FEMA Determination''': | '''FEMA Determination''': | ||
* For occupancies insured by the [[ | * For occupancies insured by the [[SFIP#Policy_Forms|Dwelling Form]], FEMA calculates the BRCV using application data and property-specific industry data. | ||
* If FEMA cannot determine the BRCV, the insurer must obtain it using common industry appraisal methods and report it on the application form. | * If FEMA cannot determine the BRCV, the insurer must obtain it using common industry appraisal methods and report it on the application form. | ||
'''Insurer Responsibility''': | '''Insurer Responsibility''': | ||
* For occupancies insured by the [[ | * For occupancies insured by the [[SFIP#Policy_Forms|General Property form]] and the [[SFIP#Policy_Forms|RCBAP]], FEMA does not determine the BRCV. The insurer is responsible for determining, documenting, and maintaining the BRCV in the underwriting file. | ||
== Documentation Requirements == | == Documentation Requirements == | ||
Records must be validated and updated at least every '''three years'''. The NFIP accepts cost estimators and appraisals as evidence of BRCV. Statements of values for commercial properties are also allowed. | |||
Documentation is not required for: | Documentation is not required for: | ||
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Latest revision as of 11:52, 10 December 2024
The Building Replacement Cost Value (BRCV) is the cost to replace a building or unit, including the foundation, using the same type of material and construction, without factoring in depreciation.
The BRCV is used as a rating factor for determining flood insurance premiums but does not impact the replacement cost determined at the time of loss.
The ratio of building coverage selected to the BRCV affects the premium.
How BRCV is Determined
FEMA Determination:
- For occupancies insured by the Dwelling Form, FEMA calculates the BRCV using application data and property-specific industry data.
- If FEMA cannot determine the BRCV, the insurer must obtain it using common industry appraisal methods and report it on the application form.
Insurer Responsibility:
- For occupancies insured by the General Property form and the RCBAP, FEMA does not determine the BRCV. The insurer is responsible for determining, documenting, and maintaining the BRCV in the underwriting file.
Documentation Requirements
Records must be validated and updated at least every three years. The NFIP accepts cost estimators and appraisals as evidence of BRCV. Statements of values for commercial properties are also allowed.
Documentation is not required for:
- Non-residential manufactured/mobile buildings.
- Storage/tool sheds or detached garages.
- Buildings or units with less than 1,000 square feet.
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This page contains information about the NFIP. Find more NFIP Resources. |