Insurance claims mostly involves the need for an equipment appraisal and appraisals tend to fall into one of the two categories. This would be either were the equipment owner will need an appraisal on engaging with an insurance company or to where the insurance company will request one before they process 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 likewise will establish a basis on preparing the proof of loss when catastrophe ever 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 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 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.
If ever you have lost a claim, the insured will usually need to protect their interests through having an appraisal done after the loss happened. When there’s no equipment appraisal that will support your insurance coverage, can you get assurance that you will be adequately covered for the loss of damage? Because of this, it is important to make sure that your coverage is sufficient in replacing your equipment on its current level.