Ace the 2025 RIBO Exam – Boost Your Insurance Broker Swagger!

The correct answer is that the insured property owner is responsible for determining the loss in property value after damage. This is because the property owner has the most comprehensive understanding of the property, including its original value, the extent of the damage incurred, and the potential costs associated with repairs or improvements.

While an insurer's estimator may assess the damage and provide an estimate for repairs, they do not ultimately determine how much value the property has lost in the broader sense, as their focus is typically on the immediate costs of restoration rather than the long-term depreciation in market value.

Local government authorities generally do not engage in property valuation related to individual insurance claims; instead, they focus on zoning, building codes, and regulations. Similarly, while a mortgage lender may have an interest in the property’s value because it secures their investment, they do not have the direct responsibility for determining the loss in value after damage. Their role is more about assessing risk associated with lending rather than evaluating property damage. Thus, it is the responsibility of the property owner to gauge the overall impact on the value of their property.