What role does insurance play in property valuations?
Is insurance really a necessary part of your valuation transaction? Absolutely! Insurance plays an important role in the appraisal management process. Guarantees, indemnities and assurance are often included with valuations and have similar benefits to insurance, but they don’t offer the same protection to lenders and appraisers. For example, indemnities only provide security against losses to the lender.
There are other differences between these four products and services, but the largest is that insurance is regulated by the Office of the Superintendent of Financial Institutions (OSFI). Providers of insurance have to be licensed and supervised by OSFI regularly to ensure they’re financially stable and comply with other federal standards.
When you choose a valuation solution that includes insurance, all parties are protected from potential financial risk. Regulation from OSFI ensures insurance companies have the financial stability to protect you and pay out qualifying claims. We introduced the first property valuation indemnity insurance to the market in 2009 and are still the only company to offer this kind of protection. We’ve added more products and services to our suite of valuation solutions, but continue to include the same OSFI-regulated insurance wrapper.
Do you have any questions about our valuation offerings that include insurance? Visit our Valuation Solutions page.