Maximizing asset valuation in an insurance settlement

The insurance settlement a business owner receives after a disaster or damage-causing event of some sort often does not account for the full costs of replacing Machinery and Equipment (M&E) assets. Unsurprisingly, this is because appraisers and adjusters hired by the insurance company are incentivized to undervalue M&E assets, which helps keep the overall settlement amount down.

The good news is that business owners can be prepared for these situations by regularly engaging independent inspections and valuations of their M&E assets. The additional good news is that such settlement offers are not final or set in stone; business owners can often challenge an offer they feel undervalues their assets when a claim is made.

The terms of the insurance policy can understandably have a major impact on the actual cash value (ACV) of the M&E assets - and those terms are often interpretable. Securing an asset valuation from an experienced M&E appraiser can significantly strengthen a business owner’s appeal and increase the settlement offer without having to resort to expensive and time-consuming litigation. Indeed, an independent appraisal can help them decide if hiring an attorney is necessary or worthwhile in such situations.

When it comes to insurance settlements, working regularly and proactively with an experienced M&E appraiser can help save business owners time, money and stress.