Insurance claims mostly involves the need for an equipment appraisal and appraisals tend to fall 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. 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. An insurance company mostly do an established value to help know the amount of coverage for business assets, but the responsibility is going to be all 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 actually a useful tool to determine proper amounts of insurance to be carried in cases of loss. The appraisal likewise will establish a basis on preparing the proof of loss when catastrophe ever 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 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 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. 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.