actual cash value
Equipment Appraisals for Insurance Claims
Equipment appraisals for insurance claims come in two categories: the equipment owner may need an equipment appraisal to engage with the insurance company, or an insurance company may request an equipment appraisal for fulfilling a filed claim. In both of these cases, standard operating procedure is to call the equipment appraiser after the damage has been done.
Appraisals for Insurance Purposes: Replacement & Reproduction Values
In the proposed Definitions of Values recently proposed by the Machinery and Technical Specialties branch of the ASA, no changes were made to the first 2 definitions:
- Reproduction Cost New is the cost of reproducing a new replica of a property on the basis of current prices with the same or closely similar materials.
- Replacement Cost New is the current cost of a similar new property having the nearest equivalent utility as the property being appraised.
Changes were made, however, to the definitions relating those two terms to the insurance industry. Here are the newly proposed definitions (bold & italic added):
