An insurance claim usually involves the need for equipment appraisals and the appraisals mostly falls into one of the two categories. This is either to where the equipment owner needs an appraisal for engaging with an insurance company or this is where the insurance company requests for one before processing 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 in fact a good business practice that you ascertain insurance value for your asset, especially for the 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, lawyer, CPA and business manager will usually agree on the majority of the qualified equipment appraisers with the importance in having an appraisal done while the equipment is on its good working order. When the heavy equipment ever was totaled because of collision, fire or vandalism or in case the manufacturing line was damaged, appraising the original value becomes a little 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. In case that there’s no equipment appraisal which supports on your insurance coverage, can you get an assurance that you will be covered adequately 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.