Equipment Appraisal Blog | Understanding Machinery Appraisals

What is effective age and why does it matter for your business?

Posted by Equipment Appraisal Services on Tue, Jan 16, 2018 @ 10:56 AM

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Effective age is defined as the difference between the overall economic life and the remaining economic life of a piece of equipment, a structure or similar asset. Though that provides you with a basic overview of the concept, it can often seem much more complicated than that. How is it determined? How will it impact your company's bottom line? Do you really need to know this detail for your machinery? Here's a quick look at those questions and more.

What is effective age and why does it matter for your business?

Though the above definition of effective age seems rather dry, it does cover the basics. Imagine that you've purchased a cargo van for your company. Purchased new, the expected lifespan is about five years with your expected annual mileage. But what if you found a great deal on another vehicle after a couple years of ownership? By spreading the work between the two vehicles, you may then expect the cargo van to last longer, but exactly how long? That's where effective age comes into play.

If machinery is abused or used in a harsh environment, it may age at a rate faster than would otherwise be considered normal. Salt water, moisture, humidity, sand, grit, dirt, acids: all of these factors can make a piece of machinery age at a much faster rate than would normally be expected, often because they cause excessive wear and tear on the machine's components. If you were considering using machinery like this as collateral in a bank loan, you may find it isn't considered to be worth as much as you might expect.

In both of these cases, the machine itself can be expected to last a longer or shorter time period than may have been originally expected based on the appraiser's prior knowledge of the equipment. Because a machine appraiser spends all day looking at equipment, they have a good eye for when a machine is in exceptional condition and will last significantly longer than expected. For example, a well-maintained piece of equipment that is kept in an ideal environment and worked well below its top specifications can be expected to last much longer than a piece of machinery that is poorly maintained in a bad environment and regularly worked at the very top of its expected performance will. 

When you have a machinery appraisal performed on your equipment, you're able to discover about how much longer it can be expected to perform economically for your company. Having this information available makes it much easier to determine when you'll need to purchase replacement equipment. You'll have more time to shop around, learn about the best new features and decide exactly what type of machinery you need and what budget you can afford to spend on the right equipment. That's always a much better option than being forced to quickly replace failing equipment with machinery that won't meet your needs.

By knowing your machinery's effective age, you can better plan for your company's financial needs in the future. This allows you to spread any equipment purchases out over time without having to worry about your equipment failing before it's paid off. By knowing this figure, you can ensure that your company has the means in line to replace the equipment when the time comes without exposing the business to excessive risk.

Tags: Asset Depreciation, effective age

Online Equipment Appraisal: The Benefits of the Process

Posted by Equipment Appraisal Services on Tue, Jan 02, 2018 @ 09:26 AM

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When you need an equipment appraisal, the timing can often be inconvenient or problematic to your schedule. But when it's needed, you know the task must be handled. Fortunately, there's another option for you to consider that can give you the appraisal you need without having to sacrifice your schedule in the process. Here's a quick look at online equipment appraisal and how it can benefit your business.

Online Equipment Appraisal: The Benefits of the Process

But what is an online equipment appraisal? When an appraiser does not go on site to view your equipment first hand and instead relies on the specifications and pictures that are provided by the owner, this is known as an online equipment appraisal or desktop appraisal. It has a number of benefits for your business.

Since the appraiser's travel time and expense are eliminated, this type of appraisal can provide you with what is usually a more economical option. For many use cases, it provides sufficient documentation of the equipment's value. When you're trying to get an idea of what a piece of machinery's value is, it can give you a solid ballpark figure to help get you started. 

If your equipment is fairly standard, an online machinery valuation is an easy way to find out what it's worth. When you have a large number of the same machinery, such as a fleet of semi trucks that were all purchased around the same time and have similar mileage on the odometer, getting an online equipment valuation is a good way to get an idea of the overall value. You'll still need to provide some information when having a group of the same model machinery appraised, including ID numbers and mileage or hours.

In general, when an appraisal needs to be produced fairly quickly, the equipment in question is fairly standard in your industry or the equipment is located far from an appraisal company, a desktop appraisal can be a great choice. You will still need to provide some information and time to the appraisal company in this situation. It will require a well-detailed description or list of the asset or assets in question to help the appraiser get started in researching that machinery. Excellent photos to show key areas of the machinery will be needed to verify the machinery's overall condition. What's more, you'll also need to make available a person who is familiar with the equipment and who is authorized to speak on your behalf to the appraiser about the machinery being appraised.

However, it's important to know whether a desktop appraisal would be appropriate for your situation. If the value of the machinery is in question because of a contested case in court, such as a divorce, lawsuit or issues with your insurance company, this type of appraisal may not be sufficient for your purposes. In these situations, an in-person appraisal will almost certainly be needed, with the report prepared by a certified equipment appraiser that will hold up well to strong scrutiny in these situations.

The equipment valuation process is a vital part of your company's asset protection and risk reduction plan, but that doesn't mean it has to be a big problem. Online equipment appraisal can provide you with a more economical format that doesn't take as much of your time and often provides solid results for most purposes. 

Tags: online equipment appraisal

Discover your equipment's real value beyond physical depreciation

Posted by Equipment Appraisal Services on Tue, Dec 26, 2017 @ 04:13 PM

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Your equipment is a big part of your business assets. But do you know what that machinery is really worth? Many companies rely too strongly on physical depreciation tables that take the age of the equipment into account, but not the market conditions or the condition of the equipment itself. Is that old table saw really not worth anything, or does it have value that can help you with negotiations down the road? Here's a quick look at what physical depreciation is and how to determine your equipment's real value.

 

Discover your equipment's real value beyond physical depreciation

Let's imagine a situation. A partnership is breaking up, and it's becoming rather messy. One partner is staying with the business and wants all the fully depreciated equipment to stay with the company. In his mind, it has no value on paper, so it shouldn't be an issue to hang onto it. The other partner who is leaving is demanding that his interest in the equipment be paid off, because the equipment is still used on a daily basis to produce income for the business. Therefore, the equipment does have value.

The next person involved in the dispute is the bookkeeper or accountant, who shows that the machinery has been fully depreciated and no longer has value as an asset to the company. But by definition, this means that the equipment should no longer be functioning effectively. Who is right and who is wrong in determining value?

When a physical depreciation is used, most commonly with income taxes, there is a strong expectation that the equipment will last a set period of time. It could be two years, five years or a decade. On average, that equipment will need to be replaced at the end of the depreciation period, therefore the equipment's value drops following a table as time passes.

But if the equipment is being maintained well, not abused or pushed to the end of its rated capacity, it can last much longer. Almost every business has a piece of equipment bumping around that is absolutely ancient, but it still performs very well. If the books show that this equipment has no value, how can you make a claim when it's destroyed in a fire or stolen? Two words: equipment appraisal.

An equipment appraisal looks at so much more than a simple depreciation table for taxes. The appraiser will take a solid look at the machinery, noting its condition, brand, model and any packages, kits or after-market add-ons that may boost its value. They will also look at how well the mechanical systems work, whether it consistently produces high-quality results and if it is in need of repairs or maintenance. Any abuse or damage will be noted, as well as wear that may shorten the equipments estimated remaining useful life. Finally, they'll look at the market conditions and determine whether demand will raise the value of the equipment.

When you take the time to have an equipment appraisal performed, you have proof of your equipment's value for insurance, tax, financial and legal purposes. However, to have that proof hold up in those circles, you'll want to make sure the appraisal is performed by a certified equipment appraiser. The certification process provides the appraiser with the appropriate methodologies to calculate equipment value that have been tested in a wide range of circumstances and hold up well for these purposes.

Tags: Physical Deterioration, physical depreciation

How do Standards of Value Impact Your Equipment's Appraisal?

Posted by Equipment Appraisal Services on Tue, Dec 19, 2017 @ 01:40 PM

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When your equipment is a large part of your business assets, the value of that equipment can strongly impact your bottom line. When equipment is appraised, standards of value are used to help calculate that value. But what are these standards, how can they impact your equipment's value and why are they used in particular situations? Here's a quick overview to help you get started in understanding this appraisal concept.

How do Standards of Value Impact Your Equipment's Appraisal?

Standards of valuation have been developed over the years to ensure that machinery is being appraised in a way that provides consistent calculations and results. Because of this history, an appraised value from a certified equipment valuation specialist holds up well to strong scrutiny in a wide range of areas. However, values are calculated differently depending on the situation.

A company that is undergoing bankruptcy may have their equipment appraised at liquidation value, as it's expected that the equipment will need to be sold quickly to pay off any debts. Investment value refers to the machine's ability to provide business income, such as a welding robot on a factory floor. 

One of the most common types of equipment appraisal that is performed is fair market value. It's such a wide-spread appraisal type that it's required in some specific legal situations, such as a divorce or litigation involving the dissolution of a partnership. In calculating this value, the appraiser looks at a wide range of aspects including the equipment itself, the conditions in the market where it is used and similar aspects. As an example, a drill for oil exploration will have a much higher market value during an oil boom than when oil prices fall and exploration is at a minimum.

These different appraisal types can drastically impact your equipment's appraised value. Fair market value assumes that you can wait a while for the right buyer who is willing to pay what the machinery is worth, while liquidation value may be much lower to assure a fast sale. Different values may be determined for large or difficult to move equipment based on whether the machinery is sold in place or to be moved, due to the high cost of moving it to a new location.

The different values are impacted by a wide range of factors, and the final appraised value may not match what you've been told by a local machinery dealer. Why? If a machinery dealer offers you a higher price for your equipment than what is calculated, it may be due to a push to move their new equipment, allowing them to make a higher offer on older machinery to get their new equipment moved.

On the other hand, they may offer you a much lower price to convince you that your machinery is virtually worthless to help encourage you to replace it with equipment that has more equity. Whatever reason for the disparity, a certified equipment appraiser has been taught specific methodologies during the certification process that have been proven to hold up well in legal, financial, insurance and tax agency circles.

By knowing how standards of value affect your equipment's reported value, you can get a deeper understanding of how the valuation process works and how different situations and conditions can impact that value. This helps you get a better comprehension of appraisal reports, allowing you to better leverage your equipment value to your company's benefit.

Tags: Equipment Appraisal, standards of value, ASA accredited appraiser

How is depreciation of equipment figured and how does it impact value?

Posted by Equipment Appraisal Services on Tue, Dec 12, 2017 @ 10:04 AM

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When you own machinery assets for your home workshop or your company, you know that the depreciation of equipment can rapidly change the value of those assets. But what is depreciation? Exactly how is depreciation figured? How does depreciation impact your bottom line and the value of the machinery? Are there any other ways to determine value for machinery assets? Here are the answers to these questions and more.

How is depreciation of equipment figured and how does it impact value?

Depreciation is one process by which equipment values may be estimated. It's commonly used for taxes and similar business financial documentation. Generally speaking, it breaks down the estimated value of a piece of equipment over the expected period of time that machinery will function. It creates a simple way to lower equipment values over time, accounting for the change in value of the asset. It's one of the most common ways to track changes in machinery value for many businesses. But that doesn't mean it's the best possible option for your company.

A depreciation table assumes that all machinery of a particular type ages at the same rate. But what about when you have a piece of equipment that is expected to last much longer because it's well cared for and lightly used? What about when a piece of equipment is abused and worked hard beyond its expected limits? At that point, the expected lifespan of the equipment may vary widely compared to a piece of equipment that has more standardized care and maintenance. This makes a strong impact on the machinery's actual value when compared to the depreciation table, throwing your business' finances off - specifically the value of your assets.

There are a few different but very common situations where this happens. Well maintained machinery will still have value after it has been fully depreciated. Abused equipment will fail before it has been fully depreciated. In either instance, the machinery's depreciated value does not accurately reflect its actual value. When you have machinery that is initially used extensively but then takes a back burner to other processes, the rate at which it depreciates can change over time, making the value change as well. What can you do to depreciate the machinery using an accurate value and timeframe?

When you have a machinery valuation performed, you get all the information you need to set up a proper depreciation schedule. The valuation will determine the machinery's estimated value using standardized methodologies and the expected useful lifespan of that piece of machinery. By having these two pieces of information available, you can create your own depreciation table that is backed up by the valuation report and is customized to your company's situation. Because the methodologies used by certified equipment appraisers has been developed over the past several decades in legal, financial, insurance and tax agency circles, they stand up well to strong scrutiny.

By knowing how depreciation of equipment is determined, you can figure out exactly what type of value method works best for your assets. But when you're starting with equipment that isn't brand new, how do you figure out an initial value to determine your depreciation from? Many equipment owners have found that having an equipment valuation performed can make a big difference in being able to track realistic machinery values. 

Tags: Equipment Appraisal, depreciation of equipment

Why should I work with an ASA accredited machinery & equipment appraiser?

Posted by Equipment Appraisal Services on Wed, Dec 06, 2017 @ 11:44 AM

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When you're considering having your equipment valued, do you know what kind of appraiser you should work with? Though you could work with anyone who had a general knowledge of machinery values, that may not be your best bet. The American Society of Appraisers has spent decades developing methodologies that have been proven in a wide range of real-world situations, and that knowledge is reflected in every ASA accredited machinery & equipment appraiser they certify. Here's a look at the reasons why you should only work with an ASA certified appraiser.

 

Why should I work with an ASA accredited machinery & equipment appraiser?

When you need an appraisal performed on your machinery or equipment, do you know whether the appraiser you contact is certified? Though it's not the first question most clients ask of an appraiser, it's a very important one with regards to the accuracy of your final valuation report. The certification process provides an appraiser with the background education, knowledge and experience to help ensure they're accurately valuing your equipment. As an appraiser is certified, they receive a specific amount of education in both how appraisals are performed as well as which situations demand specific calculations and methodologies.

The most common accreditation program is from the American Society of Appraisers, or ASA. As one of the leading professional organizations for appraisers, the program they offer for accreditation uses the methodologies that its members have been using for decades. This means that reports generated using these methodologies stand up well to strong scrutiny. But in what situations is this really important?

Almost everybody has heard of a situation where a business is dealing with an insurance company, a lawsuit, a tax agency or a financing company where the value of an asset has been questioned. Though most people know that there's an appeals process in most of these situations, they don't bother to pursue this avenue because they don't know how else to prove the value of the asset. That's one of the best places where an ASA accredited appraiser's report can benefit your business or situation.

Because reports generated by accredited appraisers use the same standardized methodologies that have been used for decades, the report is viewed with higher regard than one developed by your local equipment dealer or similar appraisal approach. These types of appraisals have been tested in court cases and often have made a big difference in the outcome of the case. In insurance claims, it's not uncommon for adjusters to make an incorrect valuation because they don't specialize in that type of machinery. In financial and tax circles, an appraisal report can help prove a piece of equipment's value.

When you work with an appraiser, the information you receive can help prove the value of your machinery, but the information is only as strong as the methodologies that are used to calculate that value in the first place. By working with an ASA accredited machinery & equipment appraiser, you're ensured that the valuation report that you receive is accurate and will hold up well to strong scrutiny in a variety of situations. Make sure before you get started with an appraiser that they are certified to ensure you're getting your money's worth out of the valuation report you receive.

Tags: certified appraisal, ASA accredited appraiser

Exactly how do you determine normal useful life in your equipment?

Posted by Equipment Appraisal Services on Tue, Oct 17, 2017 @ 12:24 PM

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When you own equipment, do you know about how long you can expect to be able to use it? Though most owners know roughly how long their equipment will last, determining a closer estimate is a difficult process. Fortunately, it's a process that is familiar to many experienced and certified equipment appraisers. Here's a quick look at the factors they consider when determining normal useful life in a piece of equipment.

Exactly how do you determine normal useful life in your equipment?

 

There are a wide range of factors that contribute to the lifespan of a piece of equipment. Here are just a few that are taken into account by a certified equipment appraiser during the process of calculating useful life.

  • Environmental conditions. There can be a huge difference in the lifespan of a piece of equipment based solely on the conditions where it is stored and used. Equipment kept in a dusty warehouse with extremes of temperature and a leaking roof will almost certainly have a much shorter lifespan than one kept in a clean, dry workshop with climate controlled temperatures. Why? Moisture and humidity can lead to corrosion, while being used in hot, dusty conditions will lead to early breakdown of lubricants and cause excessive wear. Better conditions lead to a longer useful lifespan.
  •  Suitability to the work. If the equipment you're using is underpowered for the work, it will be used at the high end of its range for most of its lifespan. That means it will overheat more often, breaking down lubricants and causing excessive wear on the components. This in turn leads to other parts failing and a shorter overall lifespan than may be expected of a piece of machinery better suited to the work at hand.
  • Abusive usage. Is the equipment being used with care to preserve its condition? If it's being used incautiously or being beaten on to work controls, this level of abuse will quickly shorten its overall useful lifespan. As an example, we've all seen heavy equipment that has been bashed, dented and torqued early on in its lifespan, which quickly leads to early failure.
  • Expected longevity of that line of machinery. Some brands have a reputation for excellence and longevity that comes into play. For example, a store brand bandsaw with a reputation for poor performance and shoddy manufacturing won't hold up nearly as long as a finely-crafted one that has been well engineered, created from the best materials and delivers superior performance time and again. When the second example is used, you can expect a much longer useful lifespan than you may otherwise anticipate.
  • Regular maintenance and repairs. Though it seems like a simple step, regular maintenance in line with the manufacturer's recommendations can help ensure a much longer lifespan than equipment that has been neglected over the years. In the same vein, repairs that are caught early and dealt with quickly will help prevent damage to other components in the system.

Though the process of determining normal useful life in a piece of machinery is difficult, it's one that equipment appraisers are well versed in handling. By knowing when your equipment may fail, you can better plan for replacement and ensure you are still able to receive some resale value out of it. A certified equipment appraiser can help you determine this timeline for your machinery.

Tags: normal useful life, remaining useful life, fair market value

What exactly is a USPAP compliant appraisal?

Posted by Equipment Appraisal Services on Tue, Oct 10, 2017 @ 03:02 PM

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When you're considering having an equipment valuation performed, one option that is available is having a USPAP compliant appraisal performed. But what exactly is USPAP and how are appraisals that are compliant to USPAP standards different than other types of appraisals? Here's a quick look at this type of appraisal and how it can benefit you.

What exactly is a USPAP compliant appraisal?

Standing for the Universal Standards of Professional Appraisal Practice, this represents a set of standards set and published by the Appraisal Standards Board, which in turn is authorized by the Appraisal Foundation. The Appraisal Foundation itself was authorized by Congress to be the source of appraiser qualifications and appraisal standards. Though USPAP appraisal practices were initially focused on real estate appraisal specifically, it has since grown to encompass virtually every possible item that can be appraised in business. 

But how can these standards benefit your equipment appraisal? Because of the high scrutiny under which USPAP has been developed and the number of different situations under which it has been applied, it has developed into a comprehensive standard that deals well with a wide range of situations. Over time, it has been tested in a wide range of legal, financial, insurance and tax agency circles. For this reason, it has become a trusted standard that provides business and equipment owners with many benefits.

When a business suffers a loss, whether due to a fire, natural disaster or theft, insurance companies must be dealt with. If the equipment has not been properly appraised, the business has no basis for claiming a value different than the one generated by the insurance company. But the insurance figure may be a generalized average across the industry, which does not recognize that the equipment has been maintained exceptionally well in a clean, dry environment. How do you fight that figure?

What about when a tax assessment is much too high on a piece of machinery that was purchased as a disposable asset, intended to be used hard for a short period of time? When a piece of equipment is purchased as a stop-gap until something different can be made to work, it often doesn't receive the best treatment. Receiving a high assessment on a machine that has a much lower value can be difficult to fight.

When you're getting ready to expand your business, do you need to secure financing using your equipment as collateral? How can you prove to the financial institution how much it is worth? A business loan can be difficult enough without having to deal with proving your equipment's value to the bank.

Fortunately, when a USPAP appraisal is performed, it provides documentation of the machinery's value, which will hold up to strong scrutiny in a wide range of situations. The standard has been tested in many situations, so it is trusted as an accurate measure of value for the machinery in question. An appraisal report prepared by a certified appraiser ensures that your interests are being protected during the process.

Though a USPAP compliant appraisal seems like a complex process, its many benefits help provide you with a wide range of benefits. Because a certified appraiser is already familiar with these standards, they're able to properly apply them to your equipment appraisal to ensure you get an accurate value. Working with a certified equipment appraiser provides you with a range of protections that may last well into the future.

Tags: USPAP appraisal, standards of value, certified appraisal

How is actual cash value determined by a certified equipment appraiser?

Posted by Equipment Appraisal Services on Tue, Oct 03, 2017 @ 11:36 AM

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If you're thinking about having equipment appraised, you may have heard any number of appraisal types tossed around. One type of calculation that is commonly used is actual cash value. But what is this appraisal type, how is it performed and in what situations is it the best option to consider? Here's a quick look at these questions and how they apply to your machinery assets.

How is actual cash value determined by a certified equipment appraiser?

When it comes to determining actual cash value, many people are a bit confused over how this figure is calculated. It doesn't help that over the years, the court system has defined it in several different manners. Some people think it's the same as fair market value. Others think that it's replacement cost minus depreciation. Others think it's a hybrid of the two.

But what's the difference between these two approaches? Replacement cost minus depreciation can work in some situations, but not in others. A piece of machinery is lost in a fire, and the cost to replace it is $50,000. Depreciation on the original equipment would have been $5,000, so the equipment is valued at $45,000. Using fair market value, the same equipment may be older and fully depreciated. Using replacement cost minus depreciation may only provide a value of $5,000, but if the equipment was well maintained, it may still deliver years of reliable service. At this point, the value of $5,000 may be unrealistic for replacement in a loss.

Obviously, calculating actual cash value is a difficult process, with contradictory precedents depending on the state where the equipment or company is located and where you're going through legal or insurance issues. Despite the vague definition of actual cash value, many legal, financial, tax and insurance organizations still use it, leading to potential disputes between the customer and the company. Hiring a certified equipment appraiser to provide you with an appraisal report on the actual cash value of your equipment can help your side of the debate. 

In a number of court cases, the report or testimony of a certified equipment appraiser has made all the difference between a poor value and a fair value for equipment. A certified appraiser goes through an extensive educational process that includes learning which appraisal methods are applicable to which situations. Because they are taught proven methodologies that have been tested in legal, financial, insurance and tax circles, the reports they generate hold up well to scrutiny and are considered more reliable and accurate than a number of other sources you may be tempted to use in your situation.

A certified appraiser has the knowledge, experience and ability to help you fight a poor estimate of actual cash value. They've been trained to know in what situations different rules must be applied to determine a fair value for your equipment. When you work with a certified appraiser, you'll realize significant benefits for your machine values.

When you have actual cash value calculated on your equipment, you're gaining good insight into what your machinery is worth. However, if your appraisal isn't performed by a certified equipment appraiser, you may not be getting accurate information or an appraisal report that will hold up in financial, insurance, tax and legal circles. Make sure the appraiser you use is certified to ensure that your documentation will stand up to strong scrutiny in the future.

Tags: Insurance Loss, actual cash value, fair market value

How is replacement cost new different than other appraisals?

Posted by Equipment Appraisal Services on Tue, Sep 26, 2017 @ 02:03 PM

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When we've been discussing equipment appraisals in the past, we've discussed a number of ways in which machinery may be appraised. But one type of appraisal we haven't gone into depth with is replacement cost new. Because it's only used in certain circumstances, it's a type of appraisal that many people are still unaware of. Here's a quick rundown of how it's different and a situation where it's commonly used.

How is replacement cost new different than other appraisals?

When you purchase insurance on your machinery, it's important to know what type of insurance you have in place. Replacement cost is a commonly used variety, but will only cover the replacement of the machinery with similar machinery. This can backfire for many equipment owners, especially when the equipment has been customized to their operation, such as an extruder that has been customized to their exact needs. An insurance adjustor may not understand the find differences between the types of equipment, dragging your claim out.

For that reason, many people will insure their equipment for replacement cost new. When a technical company in North Carolina had an office flood, they lost a significant portion of the equipment in their computer lab. The insurance company didn't understand that the equipment had been bought over time from a number of sources to ensure the company could work with the wide range of systems their clients were using. Because they had replacement cost insurance, they had to fight with the insurance company for many months to reach a settlement, as the insurance company didn't understand the current value of those machines to the business.

In another example, a company had a break in where several key pieces of equipment were stolen. Because they had replacement cost new coverage on the equipment, they were able to get compensation that allowed them to replace the stolen machinery with equivalent new machinery. This made it much easier for the shop to get back into working condition without too much lost production. Some of the machinery was much older, so finding the same equipment used would have been very difficult and very time consuming for the business. Because of the coverage they had on the equipment, they could find machinery that met a minimum set of specifications and be reimbursed for the purchase of that machinery by the insurance company. For example, an old bandsaw used in the shop provided resawing capability at 3 HP could have been replaced with a new resawing 3 HP bandsaw.

The difference between these two businesses is fairly clear. Both lost older machinery that was difficult to replace. However, one spent months trying to prove the value of the machinery in their business while the other merely had to shop for new equipment that met the same needs in the business. This had a huge impact on the productivity of the business and the amount of time the company's owners had to spend on growing the business versus chasing the insurance adjuster's latest numbers.

When you need to make an insurance claim or otherwise need to know the replacement cost new of your equipment, it's important to work with a certified machine appraiser who has experience in your industry. Why? It's important that they know why particular features and capabilities are vital to keeping your operation moving. They also have the knowledge of how to calculate this machine value accurately, which is important to your claim or need when you've had an equipment loss.

Tags: Insurance Loss, replacement cost new