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SCMIRF Property Appraisals Keep Replacement Costs Accurate

One of the value-added membership benefits that the South Carolina Municipal Insurance and Risk Financing Fund provides is a property appraisal to determine the insurance replacement cost value for insured buildings.  

The values of SCMIRF member properties are a deciding factor in determining the contribution that the SCMIRF member will pay each year for property coverage. The price of materials, labor and construction are some of the factors that determine the replacement cost of property. As the price of lumber and steel increases, so does the cost to build municipal buildings. The value of land is not a factor and is not measured.  

SCMIRF contracts with HCA Asset Management to provide property appraisals for all members. The appraisal ensures that property contributions and coverage limits of each member are fair and accurate. This service has no additional cost, and SCMIRF makes appraisal reports available to members. HCA starts the appraisal process in March and concludes it in June.  

On average, properties receive an appraisal every three years. HCA conducts a property valuation on buildings valued at $10,000 or more for members who have property coverage in the coastal regions. For members in inland counties, the threshold is $100,000. Outside of the three-year cycle, HCA reviews newly acquired buildings valued at $1 million or more.  

This appraisal process ensures that the properties of each member are properly valued and adequately insured. It also allows SCMIRF to provide accurate replacement cost values. Property contributions are based on 100% of the property’s replacement cost values. Specific limits on the amount of coverage for each scheduled property are based on the figures established by HCA. 

During years when an appraisal does not take place, SCMIRF applies an inflation factor provided by HCA. That annual inflation factor is expected to grow by double digits until the end of 2024.  

SCMIRF sends an appraisal report to the member after the appraisals are complete. Each report includes the address of the scheduled property and its new estimated replacement cost value. 

In order for the appraisal process to run smoothly and take a minimal amount of time, HCA will ask that blueprints, copies of contractor pay applications, and details of all the water and wastewater facilities and site plans be readily available.  

For any additional questions about property appraisals, contact Robert Collins, underwriting manager at or 803.933.1279.