An insurance claim usually involves the need for equipment appraisals and the appraisals mostly falls into one of the two categories. This is either where the equipment owner needs an appraisal in engaging with the insurance company or the insurance company requests 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 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. Insurance companies will and often do an established values to help determine the amount of the coverage for the business assets, but the responsibility is going to be yours. It’s a good business practice to ascertain an insurable value for your assets, especially for an income-producing equipment. Insurable value valuation is found to be a really helpful tool in knowing the proper amount of insurance that is going to be carried in instances 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. If in case the heavy equipment had been totaled due to collision, vandalism or collision or when your manufacturing line had been damaged, appraising on the original value is going to 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 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.