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. 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 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, 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.
Consider imagining how fast and less expensive the equipment appraisal for insurance claim reasons may end up if the files of 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.
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. 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.