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[nafex] Re: $ value of trees



I am assuming the object is to arrive at the value of the trees.  

I had to do this a few years back when my home burnt to the ground 
destroying my greenhouse, and trees in close proximity of the house.  
The lose to the home exceeded the policy limits, but most policies 
also insure plants and trees as a percentage of the total property 
value with a cap of 500 per tree (ho3 type policy).  In other words if 
you have 100,000 on you r home that does not mean you cannot collect 
110,000 if you lose some trees and shrubs and the like.

Anyway I suggest more than one approach, so you have an array of 
valuations at your disposal in case the opposition comes in with a low 
ball appraisal.  The idea is simple if they are low you will 
automatically be deemed to be high and the comprimise will be 
somewhere in the middle..  Teh idea is to have several methods of 
appraisal that then tend to be averaged together before they attempt 
to find the middle ground wiht what will be the low ball offer.

Some thoughts, get a nursery to bid on the cost to replant the 
orchard.  So much for the trees, so much to dig each hole, and so much 
to care for the trees for five years properly with their crews.

Secondly view the trees product as a future cash flow, i.e. establish 
the cash flow from the orchard and do a NPV (net present value) 
calculation on the value of the future earning streams.

You price should reflect the cost to establish the orchard (using a 
landscaping firm or nursery) plus the value of the production orchard.  
Thos efigurs can be had from a variety of sources.  If you are talking 
an acre or so it may well be worth while to fly in a noted expert and 
pay for the opinion in court.

Wishing yo al the best,

Kevin

(by the by I stretched my homeowners compensation out well beyond the 
base policy limits by using such a method as outlined above.)





 

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