Like any other industry, property valuation is sensitive to external shocks. While consumers may not feel these changes immediately after a serious economic or real estate event, the impact can be very detrimental.

The real estate market shifted rapidly during the height of and then after the pandemic. Central banks raised interest rates, which only pushed this instability further. The cost of living and shortages in properties have forced homeowners and prospective buyers into compromising positions. Some have rented out their homes to receive extra income, whereas buyers have been left with fewer affordable options.

A growing number of homes are also becoming uninsurable in the usual insurance market as insurance providers discontinue homeowner policies due to heightened risk profiles and the impact of higher rates for investment vehicles. This has been particularly true for California residents. Wildfires and other extreme weather events have increased in frequency and severity, causing insurance companies to be wary of catastrophe exposure and construction costs significantly outpacing inflation.  Due to these factors, consumer costs are drastically increasing in many areas but especially  Florida, Texas,  Louisiana, and New York in addition to California.

Amid these complications, homeowners should consider looking for a property valuation partner that is knowledgeable about the shifting tides in the market. Not all companies specializing in valuation are able to offer consistent updates on the replacement value of a property, making it even more important to find the right service provider.

e2Value, an online property valuation organization, offers consumers fast, easy, and accurate tools for evaluating commercial, high-value, mainstreet, and other types of properties. The company’s online property valuation software makes collateral value monitoring extremely simple.  In most cases, users only need to supply an address to get their report.

e2Value has successfully accelerated the valuation process by sourcing from private and public data sources to provide up-to-date information quickly. The company has the unique ability to work with insurance agents or carriers and individual commercial property owners. Because of this, e2Value is highly popular amongst consumers and insurance providers. Their estimations are reliable and accurate enough to pinpoint necessary coverage. They remain knowledgeable about market shifts.

Todd Rissel, Co-Founder and CEO, says that the company’s solutions are increasingly in demand due to the unstable market conditions.

“Premiums are going up exponentially while the market value of a property can be dropping,” says Rissel, “Consumers are sometimes unaware of this until they speak with their insurance provider and discover that their home now costs more to insure due to more environmental risks and fewer admitted carriers offering homeowner insurance. Although consumers may assume this is a temporary money grab from insurance companies, the current landscape is because of record catastrophic losses, high interest rates, dry investment channels, and market responses to external events. To protect your property from these problems, consumers should be more precise in choosing their insurance policy and putting together their financial plans.” 

Rissel predicts that the market will remain disrupted until investment vehicles for insurance improve and sustained catastrophic weather activity drops.  Until then - and actually after - consumers need to realize the rebuilding market they were once in has changed.  The cost of an average policy has gone up and may not come back down much.  An annual or even semi-annual review of their home insurance policy is recommended in any market, but is especially important in today’s market.