What is an Equipment Appraisal
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.
When you have an extensive equipment holding, it is important that you have an appraisal done for the insurable values for your equipment and with the assets scheduled out on an insurance policy and is insured for their 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 also will establish a basis in preparing a proof of loss in case catastrophe 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 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 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 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. 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? This is why it’s essential to make sure that your coverage is sufficient in replacing your equipment on its current level.