Building Replacement Cost Value: Difference between revisions

Revision as of 09:09, 2 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.

This page may need to be edited based on suggestions or concerns. Read more in the Discussion page.

This page contains details about NFIP New Business.
Find more in the How To Write section of the NFIP Flood Insurance Manual.

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 == 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.
-Supporting documentation must include:
-* Recent appraisals of the building and foundation based on replacement cost.
-* Records must be validated and updated at least every '''three years'''.
 Documentation is not required for: