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 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. In some cases, the appraisals are for the replacement costs or for loss settlements, but for most cases, a standard operating procedure is for calling the equipment appraisers after the damage has been 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. 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 in fact a good business practice that you ascertain insurance value for your asset, especially for the 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 lawyer, CPA, insurance agent as well as business manager mostly agreed on most of the qualified equipment appraisers also with the importance in having an appraisal done while the equipment is still in good working condition. 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 if on the case where the equipment was not appraised in the last few years, the equipment appraiser may refer you to the original appraisal that was done for the purpose of insurances to help you make sure that all of the construction, manufacturing, mining, agricultural, transportation equipments and aggregates are covered in case 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. 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? 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.