PROBLEM OF INSURANCE VALUATION PRACTICE ON COMMERCIAL PROPERTY INVESTMENT

ABSTRACT This study examine the problem of insurance valuation practice for commercial property investment using a case study of ilorin kwara state, with the use of primary source of data such as questionnaire, information sourced from (22) respondents which are estate surveyors and valuers. The study which examine different insurance policies, analyze the benefit of insurance valuation to commercial property investment and access drawbacks of insurance valuation. The findings of the study showed that, insurance policy, benefit of insurance valuation and drawback of valuation have direct impact on commercial property investment in Kwara State. It was also found that; problem of insurance valuation practice has adverse effect on commercial property investment in Kwara State. On a final note, the results also revealed that problem of insurance valuation which include high cost of hiring professionals for accurate valuations, time-consuming, the valuation process can be lengthy, Some believe that if their property is overvalued it can lead to higher premiums than necessary, disputes Over Valuation between property owner and estate surveyor and valuer. The study therefore concluded that insurance valuation practice should be done in a standard ways for commercial property investors in Kwara State to excel in the in their business. Base on the findings, the study concluded that, insurance valuation practice impacts commercial property investment in Kwara State. the study recommends that Government should design friendly insurance policy that will be beneficial to commercial property investors, The insurance valuation on real estate sector should be done in accordance with the international standard and lastly the government and other major stakeholders in the real estate industry should continuously organizing seminars, workshops and conferences in order to address some drawback of valuation that is hindering the activities of commercial property investment in Ilorin kwara state.