Understanding an Equipment Appraisal
Insurance claims mostly involves the need for an equipment appraisal and appraisals tend to fall into one of the 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. 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. See More Here

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 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 also will establish a basis in preparing the needed proof of loss if ever catastrophe will strike.

Your lawyer, CPA, insurance agent as well as business manager mostly agreed on most of the qualified equipment appraisers also with the importance in having an appraisal done while the equipment is still in good working condition. 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.

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. See More Now

When there's a case of a loss claim, the insured usually needs to protect their interests through having an appraisal done after the loss occurred. 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 the reason with why you have to make certain that your coverage will be sufficient to replace your equipment at its current level.