IJARP SJIF(2018): 4.908

International Journal of Advanced Research and Publications!

Investor’s Demand For Insurance Valuation: The Estate Surveyors & Valuers’ Perception

Volume 3 - Issue 3, March 2019 Edition
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Author(s)
Ernest O. Alohan
Keywords
Perception, Investors, Insurance, Valuation, Insurance valuation,
Abstract
The study demonstrated the perception of estate surveyors and valuers on the demand for insurance valuation by real estate investors in Nigeria. It sought to establish the rationale for seeking insurance valuation, ascertain whether estate surveyors and valuers provides advice to their client on insurance cover against damages/losses, investigate the client’s level of response to insurance cover, level of demand for insurance valuation and the factors influencing such level of demand. To achieve this, relevant information were sourced from estate surveyors and valuers through the use of structured questionnaire and personal interview. The study adopted the use of total enumeration of the study population of estate surveying and valuation firms, representing 100% of the study population. A total of 51 questionnaire were distributed to heads of Estate Surveying and Valuation firms, out of which 46 were retrieved and analysed for the study, representing a response rate of 90.20%. The questionnaire contains information on the number of insurance valuation done per month, purpose of valuation, whether estate surveyors and valuers advice their clients on the importance and need of insuring their property and their response, and also to rank each factor influencing demand for insurance valuation as perceived by them. Data collected were analysed using descriptive statistics. Findings revealed that valuation for mortgage was more prominent with 36.96%. It further revealed that estate surveyors and valuers advise their clients on the need for insurance cover and that most real estate investors do not consent to their advice. The study further established that poor attitude towards insurance services, lack of trust for insurance and lack of adequate knowledge of insurance by investors with mean rating of 4.522, 4.196 and 4.174 respectively ranked highest among the factors influencing the demand for insurance valuation. The study recommends prompt response and payment of claims to clients by insurance companies to build trust and confidence, embark on public enlightenment programmes to create more awareness and provide adequate knowledge to property investors to increase patronage of estate surveyors and valuers for valuation on insurance purpose.
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