An insurance claims mostly involves on the need for an equipment appraisal and these appraisals mostly falls into one of two categories. This would be either were the equipment owner will need an appraisal on engaging with an insurance company or to where the insurance company will request one before they process for a filed claim. For some of these cases, the appraisals are for replacement costs or on the loss of settlements, but for most of the time, a standard operating procedure is in calling equipment appraisers after the damage was done.
If you ever have an extensive equipment holding, it is really important to have an appraisal done for an insurable value for your equipment and with the assets scheduled on an insurance policy and insured for an appraised value. The insurance companies usually do an established value in order to help determine the amount of coverage for business assets, but the responsibility will all be yours. It’s a good business practice to ascertain an insurable value for your assets, especially for an income-producing equipment. An insurable value valuation is a very helpful tool to determine proper amount of insurance that will be carried in events of loss. The appraisal also will establish a basis in preparing a proof of loss in case catastrophe strikes.
Your insurance agent, CPA, lawyer and your business manager may agree on most of the qualified equipment appraisers when it comes to the importance of having an appraisal done while the equipment is at its good working order. If ever the heavy equipment was totaled due to fire, collision or vandalism or your manufacturing line had been damaged, appraising the original value will become a little more difficult.
Just try imagining on how fast and less expensive the equipment appraisal for insurance claim reasons may be in case the files on the equipment includes a recent USPAP appraisal. Even if the equipment was not appraised in the last few years, an equipment appraiser could refer to the original appraisal which was done for insurance purposes to help ensure that all the manufacturing, construction, agricultural, mining, transportation equipment and aggregate is covered in cases of damages or loss.
When there’s a case of a loss claim, the insured usually needs to protect their interests through having an appraisal done after the loss occurred. If there will be no equipment appraisal that supports your insurance coverage, could you get guarantees that you will be adequately covered on the loss of the damage? Because of this, it is important to make sure that your coverage is sufficient in replacing your equipment on its current level.