Share this post
We recently had the pleasure of hosting a highly informative webinar featuring two industry leaders: Pete West, CEO of Go West Valuations Corp, and Steven Laidlaw, CEO of Stelor. The focus of the discussion was on the critical role of property appraisals and the innovative technologies available to safeguard your reserve funds.
Table of Contents
About Our Special Presenters
Pete West, CEO and owner of Go West Valuations Corp is a specialist insurance appraiser renowned for conducting thousands of appraisals across Western Canada. Recognized as a leading authority by peers and clients, his appraisals have consistently proven accurate in total loss scenarios, including $400 million in real estate assets during the Fort McMurray fires. He has served on the Board of Directors for the Canadian National Association of Real Estate Appraisers, chaired its education and disciplinary committees, and received the Canadian National Appraiser of the Year award. He holds the highest appraisal designations in Canada, including Designated Appraiser – Commercial and Certified Appraisal Reviewer.
Steven Laidlaw, co-founder and CEO of Stelor has witnessed firsthand the transformative power of technology in reshaping industries. His team at Stelor are eager to revolutionize how property managers and condominium owners safeguard their most valuable assets. With over 20 years of experience in the reserve fund industry, they are dedicated to developing precise, dependable, and innovative solutions for condominium corporations and stratas. Reserve Plus was established on the belief that condominium owners have been underserved in their reserve fund management for far too long.
PART 1 – GO WEST VALUATIONS CORP.
Why an Appraisal?
An appraisal is essential because the latest legislation mandates it. It provides an independent verification of the appropriate insurance amount for the complex, ensuring you’re fully insured with no co-insurance clause. This leads to accurate premiums and offers year-on-year precision with a clear breakdown of all insurable components.
How is an appraisal put together?
Pete explains how an appraisal is put together in the below video:
The 2024 Status – Cost of Goods & Materials
Wood frame costs have decreased from the highs of 2021/2022. It is anticipated that we will see a stabilization or a slight decline in wood frame construction costs in the coming year. As a result, most multi-family complexes should experience a change in their appraisals ranging from +1% to -1%.
The impact on construction costs depends on the type of property. Concrete and steel frame buildings have seen continued growth this year. While lumber costs increased in 2021 and 2022, they have now stabilized at $508.63 per 1,000 board feet in 2024 as of September 17. Constructing a building involves numerous elements, so we carefully consider all costs and consider everything.
As of September 2024, the left image illustrates the fluctuations in the cost of goods over the past year. Lumber prices have decreased by 3.90% for the year, while there has been an increase in the cost of steel products.
This provides a snapshot of material trends over the past year. We are hopeful for further stabilization in the coming year.
Standard Insurable Unit Description (SIUD)
SIUDs (Standard Interior Unit Descriptions) have been mandatory for all condominiums since January 1, 2020. These documents provide comprehensive details on the complex’s standard interior unit finishes, fixtures, and built-in components. They offer property managers, adjusters, insurers, and corporations a clear distinction between standard finishes and unit betterments or improvements. This clarity helps delineate the corporation’s insurable responsibilities versus the individual unit owner’s in the event of a post-loss claim.
PART 2 – STELOR & RESERVE PLUS
What is Stelor?
Stelor provides contingency reserve fund management solutions designed to assist condominiums and property managers in forecasting, budgeting, and managing capital replacements, insurance, and reserve investments.
How does the Stelor platform work?
Steven provided us with a live demonstration on how the Stelor platform works in the below video:
What is Reserve Plus and What is the Cost?
Stelor is a software solution, while Reserve Plus offers tech-enabled reserve fund services. Steven breaks down the cost below:
Q&A
- Question: Does the 100% insurance coverage cover the inside rebuild of a condo, including appliances?
Answer: Condominium insurance differs from house insurance in several ways. It covers the interior of your unit, including finishes on floors, walls, and ceilings, as well as interior doors, closets, kitchen and bathroom cabinets, and lighting fixtures. Your unit will be restored to its standard specifications should a loss occur. Any improvements beyond these standards need to be covered by your personal policy. The condominium corporation is responsible for the base standard finishes only.
Built-in appliances, such as dishwashers, hood fans, built-in microwaves, and built-in fridges, are included in the coverage. Typically, a standard unit comes with a hood fan and a dishwasher, while other appliances like fridges, stoves, washers, and dryers, which can be unplugged and removed, are the owner’s responsibility to insure, similar to a TV. - Question: Without an appraisal, how is the insurance determined?
Answer: Typically, the board or owner might estimate the value based on their judgment, or the insurance company might provide a rough idea. However, this approach is risky because insurers might only have a general understanding of standard structures, without considering specific details. This estimation is often inaccurate as it relies on subjective opinions. An appraisal takes into account numerous variables to accurately determine the insurable value. - Question: Is the cost of an appraisal put back onto the owners as a special assessment?
Answer: Not generally. It’s a corporation expense.
Further Resources:
- Register for future Magnum York webinars: https://magnumyork.com/webinar/
- Webinar Recap – Navigating Rental Enforcement: A Presentation on Evictions and the Law
- Announcing our New Director of Magnum York’s Edmonton Branch – Josh Dingreville
Follow us on Social Media!
Comments (0)