Condominium Associations

Replacement Cost Valuations

Replacement Cost Valuation

In Florida, condominium associations must have a Replacement Cost Valuation inspection/report performed every three years (also known as cost replacement appraisal). A Replacement Cost Valuation provides a third-party, unbiased estimate of the cost to re-build or “replace” the entire property under the current building code in the event of a major catastrophe such as a hurricane. For condominiums, the Replacement Cost Valuation should also be the Insured Value of the property. Otherwise, the association would be either under-insured or over-insured. The Replacement Cost Valuation should be used by the board of directors to ensure the building and other structures can be rebuilt for the membership in the event of a disaster, while the insurance carrier should use the report to accurately estimate the dollar value amount to insure a property. The windstorm insurance premium for an association is often calculated based on a percentage of the Replacement Cost Valuation or Insured Value.

Our Replacement Cost Valuation Process

Our Replacement Cost Valuation process begins with our initial research into the condominium's improvements. A comprehensive field inspection of the community is performed to verify and/or calculate items such as the square footage of the buildings, type of construction, property condition, etc. We exclusively use Marshall & Swift’s CoreLogic data valuation software system, the industry’s leading software platform, to calculate replacement cost. The system performs a complex set of computations based on property data recorded during the field inspection and micro and macroeconomic data of the local market such as the current cost of labor, materials, taxes, fees, overhead, and profit to estimate the cost to reproduce the improvements as of the date of the report.

Replacement Cost Valuation Steps

The Replacement Cost Valuation process is performed in four stages and takes approximately 10-14 days to complete. A full detailed written report is provided to the condominium board and the insurance agent/carrier, including the property data, field inspection photographic documentation, calculations, and final Replacement Cost Value. Below is a summary of the process:


Research Improvements

Research the basic physical improvements of the Association.


Perform Field Inspection

Perform a comprehensive field inspection of the improvements.


Data Calculation & Analysis

Input data and perform replacement cost calculations.


Complete Written Report

Incorporate the Replacement Cost Values into a written report.

Frequently Asked Questions

Below are the most frequently asked questions about Replacement Cost Vaulation:

  • How often does a Replacement Cost Valuation need to be performed?

    In Florida, all condominium associations must complete a Replacement Cost Valuation every three years. Homeowners associations (HOAs) are exempt from this requirement.

  • How long does it take to complete a Replacement Cost Valuation?

    The process takes approximately 10-14 days from the approval date by an association to the delivery of the written Replacement Cost Valuation report.

  • Is Replacement Cost Value the same as Market Value?

    No. Replacement Cost Value is not the same as Market Value. The Replacement Cost Value is the cost to rebuild an association's property. The Market Value is the consideration someone is willing and able to pay for a property. The Repalcement Cost may be higher or lower than the Market Value; however, Market Value is usually higher because the replacement cost does not include the land value.

  • Can Meridian Commercial perform our Association's Replacement Cost Valuation?

    Yes! We can perform your association's Replacement Cost Valuation. Contact us via phone at (754) 900-1900, email at, or the Contact Form on this website.