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 a good business practice to ascertain an insurable value for your assets, especially for an income-producing equipment. Insurable value valuation is found to be a really helpful tool in knowing the proper amount of insurance that is going to be carried in instances 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. When the heavy equipment ever was totaled because of collision, fire or vandalism or in case the manufacturing line was damaged, appraising the original value becomes a little 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 if the equipment was not appraised in the last few years, an equipment appraiser could refer to the original appraisal which was done for insurance purposes to help ensure that all the manufacturing, construction, agricultural, mining, transportation equipment and aggregate is covered in cases of damages or loss.
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.