Valuations undertaken pursuant to the API Valuation Protocols – Crisis and/or State of Emergency and Significant Valuation Uncertainty March 2020
The API is committed to protecting members with capped liability through the Australian Property Institute Valuers Ltd Professional Standards Scheme (‘APIV Scheme’) in these uncertain times.
Following the API’s Declaration of State of Crisis/State of Emergency on 30 March 2020, members have been requested by lenders to confirm whether or not the APIV Scheme coverage remains valid for valuations completed on limited access inspection basis.
APIV Scheme Coverage
The API confirms that a current APIV member undertaking valuations on limited access inspection basis will continue to have the full benefit of the APIV Scheme provided:
- the professional indemnity insurance (‘PII’) policy covers valuations completed on limited access inspection basis – Members are strongly encouraged to obtain confirmation of this from their insurers;
- they comply with any corresponding requirements under their PII policy (e.g. The insurer may require the valuer to obtain a written agreement from the client regarding certain specific points and insert the API’s recommended valuation uncertainty disclosure.); and
- they are compliant with all other ongoing Scheme compliance obligations (e.g. a PII limit of indemnity that meets the APIV Insurance Standards).
Providing Evidence of PII Coverage to Third Parties
The API reminds all members that insurance arrangements are contractual and confidential in nature.
In particular, the API is aware that certain PII policies contain confidentiality clauses that prohibit the policy holder from disclosing the content of the PII policy to a third party, unless the underwriters provide prior written consent, or such disclosure is required by law.
As such, the API discourages members from providing full copies of PII policies to third parties, including but not limited to, panel managers, lender’s and lenders mortgage insurers.
If evidence of a member’s PII policy is required by a third party, and the request is appropriate, a copy of the member’s Certificate of Currency should be provided in the first instance to confirm the currency and level of cover held under their PII policy.
A full copy of the PII policy should not be provided to a third party without a full consideration of the risks posed by the disclosure and further advice/consent from the member’s insurers.
Posted on May 6, 2020
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