by Amanda Trueman, Director, Appraisal Services West
Whether it’s for insurance, risk management, or financial decision-making, having accurate property data is a must. Property data encompasses all the important details related to a property, such as its location, size, value, zoning, construction, historical records and more. So, when we talk about property data accuracy, that means ensuring the data is consistent across multiple data sources, so anyone who handles the data gets the same trusted information. Validating data accuracy helps avoid costly errors, supports compliance, improves risk assessment, and provides a solid foundation for investments and strategic planning. In this post, we’ll dive into the key reasons why data validation is crucial to your organization. We’ll also explore effective methods for verifying the accuracy of your property data, to ensure your information is as precise and dependable as possible.
1. Physical Inspections
A firsthand, up-to-date view of a property is essential for providing accurate property data. Physical inspections allow appraisers and other property professionals to verify the critical details that are relevant to underwriters. These can include key COPE data (construction, occupancy, protection, and exposure information), construction quality, photographic documentation, precise square footage measurements, and other elements. On-site evaluations also help identify potential risks associated with or near the property, such as tree density, roof condition, flood protection, and the vulnerability of ground-level mechanical or electrical equipment. Together, this data provides a comprehensive, real-time understanding of the property’s condition and functionality, empowering stakeholders to make informed decisions and mitigate risks effectively. With firsthand, verified data from a physical inspection, insurers have greater confidence in an insureds data and this builds trust in an organization, leading to more accurate insurance and potentially better ratings and rates.
2. Leveraging Google Earth
Satellite imagery tools like Google Earth can help verify essential aspects of a property. These maps can confirm property and structure boundaries and highlight changes such as new buildings, additions, or land improvements. The elevation and topography features of Google Earth let appraisal experts evaluate a property’s terrain and landscape, helping them assess risks related to flooding, drainage, and suitability for future development. Google Earth also provides tools for measuring distances and areas, and it contains archives of historical imagery dating back, in some cases, as far as 1985. This allows evaluators to observe changes over time. While not a substitute for a physical inspection, it’s a useful tool to supplement data collection when certain elements are missing from your data.
3. Compare Past Property Appraisal Information with Current Data
Comparing past and current property appraisal data helps risk managers and other stakeholders understand value trends, identify changes in property characteristics, and make more informed decisions about future appraisals. By examining historical valuations, stakeholders can track property value fluctuations, observe condition changes like renovations or deterioration, and consider how market factors — such as supply and demand — have influenced valuation over time. Past appraisals also reveal adjustments for economic changes that impact property use and value. These insights help stakeholders assess a property’s true market potential and future trajectory.
4. Using Digital Property Databases and Third-Party Software
Reputable third-party property software solutions, like Centurisk’s RiskStar, can offer important insight on details like property characteristics and construction history. These tools draw their data from various sources such as historical assessments, past appraisals and data from other software, to create comprehensive property profiles in a single, easily-accessible database. Those that offer robust reporting capabilities allow users to share important data with stakeholders, increasing communication across silos and improving data accuracy. RiskStar, for example, will let you report on any field in the system in any order you choose and schedule reports so information flow is consistent and automated. Standardized valuation models within the tool can help insurers evaluate risk factors more uniformly, while custom, year-over-year reporting helps them maintains data accuracy and completeness. By supplementing in-house data with these software solutions, insurers can fill in gaps and verify property details, ensuring long-term reliability and consistency.
5. Enhancing Communication and Engagement with Member Agencies
Effective communication between insurers, risk pools, and their insureds is a critical element in validating the accuracy of appraisal information. By engaging with various stakeholders, including insurers, public agencies, and other risk pool members, relevant parties can exchange valuable insights and data related to properties. These insights can include local knowledge, historical claims data, maintenance records, and recent property changes. Cross-referencing this information can verify the property’s condition and ensure that all relevant risk factors are accurately reflected in the appraisal. Furthermore, ongoing communication helps risk pools identify shared risks, such as flood zones, fire hazards, or seismic activity, ensuring that the appraisal takes these factors into account. Regular updates from stakeholders about changes in regulations or laws also ensure that appraisals remain current and reflect the most up-to-date information. By aligning with the industry standards and valuation methodologies used by other members, this can ensure consistency and accuracy across appraisals. This collaborative and data-driven approach not only enhances the accuracy of individual appraisals but also contributes to a stronger, more proactive risk management strategy for all parties involved.
Data You Can Trust Can Mean More Accurate Coverage, Better Rates
Data validation is a critical component of property insurance, ensuring both insurers and policyholders are protected against unforeseen risks. By leveraging physical inspections, satellite imagery, public records, and third-party databases, insurers can build a more complete and more accurate picture of each property’s unique characteristics and risk profile. This multi-level approach helps set appropriate premiums, improve claim efficiency, and minimize risk and loss by identifying potential hazards before they become costly issues. In addition, accurate data validation enhances customer trust by ensuring fair coverage and reliable protection. In an industry where precision is paramount, investing in comprehensive data validation methods ultimately leads to better underwriting and more reliable, cost-effective insurance solutions for property owners.