An insurance claim usually involves the need for equipment appraisals and the appraisals mostly falls 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. 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 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’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 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 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. 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 why it’s essential to make sure that your coverage is sufficient in replacing your equipment on its current level.