Insurers, outside legal counsel, investors, state health officials, and particularly those affected by exposure to a hazard want to know not just where the hazard was found but also the number of persons, properties, and businesses affected over time.
- Is there a substantial number of persons exposed over time?
- Are property values in an area near the site changed relative to similar areas?
- Is the rate of property sales slower or faster given the types of properties?
- Are commercial sales depressed because of the threat of the cost of remediation?
- What are the likely medical risks for members of the population?
All of these questions rely on knowing the impact of contamination on the population, which in turn requires knowing what population is affected by proximity to such a site.
Within tort work, we also have the ability to undertake mass valuations.
For allegations of diminished property or asset values, large scale models are needed of values based on past sales, incorporating temporal and geographic components. The goal is to establish a formal framework for testing and for estimation.
Are properties near an environmentally damaged site stigmatized, is there a common basis for measurement of loss if such exists, and how extensive is the alleged loss?
For commercial properties, is a concentration of these properties in a bank’s portfolio a problem in increased risk because of the correlation between defaults?
We apply complex financial and statistical analyses to groups of properties or assets to get a realistic and defensible valuation.