An insurance claims mostly involves on the need for an equipment appraisal and these appraisals mostly falls into one of 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 cases, the appraisals are for replacement costs or for the loss of settlements, but in a lot of cases, a standard operating procedure is for calling the equipment appraiser after the damage is done.
If you have an extensive equipment holding, it’s essential to have an appraisal done for an insurable value for your equipment and with the assets being scheduled out on an insurance policy and being insured for the 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 is also a good business practice that you ascertain insurable value for your assets, especially for income-producing equipments. 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 to imagine just how quicker and less expensive the equipment appraisal for insurance claim reasons could be when the files on the equipment included a recent USPAP appraisal. Even when the equipment had not been appraised in the last few years, an equipment appraiser may refer to the original appraisal that’s done for insurance purposes in order to ensure that all of the construction, manufacturing, mining, agriculture, transportation equipment and aggregate are covered if ever of loss or damage.
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? This is the reason with why you have to make certain that your coverage will be sufficient to replace your equipment at its current level.