22 Lessons Learned: Options
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. 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 is also a good business practice that you ascertain insurable value for your assets, especially for income-producing equipments. 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. 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.
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 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.
In cases of a loss of claim, the insured usually needs 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.