Equipment Appraisals for Insurance
Equipment appraisals for insurance are often a little different from other equipment appraisals. It’s important to inspect the policy and/or talk with the agent to be sure what’s covered, especially in the case of a claim settlement. Of course, we recommend that
equipment appraisals for insurance be done when setting up an insurance policy.
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.
Super Truck Appraisals: Equipment Appraisal on the Road
I got my first Super Truck limited edition CAT scale collector card October 2010. These Super Truck Limited Edition cards–for those of you, like me, who didn’t already know–are slick full-color trading cards that feature working trucks. Really amazingly customized big rigs that stand out from the transportation most of us see cruising down the highway, hauling chickens or lumber, produce, automobiles, or production goods. These trucks really are, well, super.
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):
Proposed Update of Valuation Terms
In April, the American Society of Appraisers released a proposal to update the current Definitions of Value approved by the Machinery & Equipment Committee and the American Society of Appraisers Board of Governors.
Over the next few blogs, I’ll share the entire definition list, but today I’d like to concentrate on 2 areas that caught my attention right away:
The first thing I noticed was the insertion of the term “opinion” in most of the definitions.This makes a lot of sense as valuation is not an absolute measurement of value but one arrived at through research and, in the words of former PCAOB Chief Auditor Thomas Rays, “the appropriate application of seasoned professional judgment.”
