---
title: How is replacement cost new different than other appraisals?
description: When you're getting a machine appraisal for insurance purposes, do you know if you have replacement cost new coverage? Learn why you need to know about it.
image: https://www.equipmentappraisal.com/hubfs/replacement-cost-new.jpg
---
[](https://www.equipmentappraisal.com)
# Equipment Appraisal Blog | Understanding Machinery Appraisals
## [How is replacement cost new different than other appraisals?](https://www.equipmentappraisal.com/blog/how-is-replacement-cost-new-different-than-other-appraisals)
Posted by [Equipment Appraisal Services](https://www.equipmentappraisal.com/blog/author/equipment-appraisal-services) on Tue, Sep 26, 2017 @ 02:03 PM
- [Tweet](https://twitter.com/share)
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](https://www.equipmentappraisal.com/blog/topic/insurance-loss), [replacement cost new](https://www.equipmentappraisal.com/blog/topic/replacement-cost-new)
### Subscribe by Email
### Most Popular Posts
### Posts by Month
- [July 2026 (1)](https://www.equipmentappraisal.com/blog/archive/2026/07)
- [June 2026 (2)](https://www.equipmentappraisal.com/blog/archive/2026/06)
- [May 2026 (2)](https://www.equipmentappraisal.com/blog/archive/2026/05)
- [April 2026 (2)](https://www.equipmentappraisal.com/blog/archive/2026/04)
- [March 2026 (3)](https://www.equipmentappraisal.com/blog/archive/2026/03)
- [February 2026 (2)](https://www.equipmentappraisal.com/blog/archive/2026/02)
- [January 2026 (2)](https://www.equipmentappraisal.com/blog/archive/2026/01)
- [December 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/12)
- [November 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/11)
- [October 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/10)
- [September 2025 (3)](https://www.equipmentappraisal.com/blog/archive/2025/09)
- [August 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/08)
- [July 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/07)
- [June 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/06)
- [May 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/05)
- [April 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/04)
- [March 2025 (3)](https://www.equipmentappraisal.com/blog/archive/2025/03)
- [February 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/02)
- [January 2025 (2)](https://www.equipmentappraisal.com/blog/archive/2025/01)
- [December 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/12)
- [November 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/11)
- [October 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/10)
- [September 2024 (3)](https://www.equipmentappraisal.com/blog/archive/2024/09)
- [August 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/08)
- [July 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/07)
- [June 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/06)
- [May 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/05)
- [April 2024 (3)](https://www.equipmentappraisal.com/blog/archive/2024/04)
- [March 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/03)
- [February 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/02)
- [January 2024 (2)](https://www.equipmentappraisal.com/blog/archive/2024/01)
- [December 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/12)
- [November 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/11)
- [October 2023 (3)](https://www.equipmentappraisal.com/blog/archive/2023/10)
- [September 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/09)
- [August 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/08)
- [July 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/07)
- [June 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/06)
- [May 2023 (3)](https://www.equipmentappraisal.com/blog/archive/2023/05)
- [April 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/04)
- [March 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/03)
- [February 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/02)
- [January 2023 (2)](https://www.equipmentappraisal.com/blog/archive/2023/01)
- [December 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/12)
- [November 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/11)
- [October 2022 (3)](https://www.equipmentappraisal.com/blog/archive/2022/10)
- [September 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/09)
- [August 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/08)
- [July 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/07)
- [June 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/06)
- [May 2022 (3)](https://www.equipmentappraisal.com/blog/archive/2022/05)
- [April 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/04)
- [March 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/03)
- [February 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/02)
- [January 2022 (2)](https://www.equipmentappraisal.com/blog/archive/2022/01)
- [December 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/12)
- [November 2021 (3)](https://www.equipmentappraisal.com/blog/archive/2021/11)
- [October 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/10)
- [September 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/09)
- [August 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/08)
- [July 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/07)
- [June 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/06)
- [May 2021 (3)](https://www.equipmentappraisal.com/blog/archive/2021/05)
- [April 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/04)
- [March 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/03)
- [February 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/02)
- [January 2021 (2)](https://www.equipmentappraisal.com/blog/archive/2021/01)
- [December 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/12)
- [November 2020 (3)](https://www.equipmentappraisal.com/blog/archive/2020/11)
- [October 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/10)
- [September 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/09)
- [August 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/08)
- [July 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/07)
- [June 2020 (3)](https://www.equipmentappraisal.com/blog/archive/2020/06)
- [May 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/05)
- [April 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/04)
- [March 2020 (3)](https://www.equipmentappraisal.com/blog/archive/2020/03)
- [February 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/02)
- [January 2020 (2)](https://www.equipmentappraisal.com/blog/archive/2020/01)
- [December 2019 (2)](https://www.equipmentappraisal.com/blog/archive/2019/12)
- [November 2019 (2)](https://www.equipmentappraisal.com/blog/archive/2019/11)
- [October 2019 (2)](https://www.equipmentappraisal.com/blog/archive/2019/10)
- [September 2019 (3)](https://www.equipmentappraisal.com/blog/archive/2019/09)
- [August 2019 (2)](https://www.equipmentappraisal.com/blog/archive/2019/08)
- [July 2019 (2)](https://www.equipmentappraisal.com/blog/archive/2019/07)
- [June 2019 (2)](https://www.equipmentappraisal.com/blog/archive/2019/06)
- [May 2019 (2)](https://www.equipmentappraisal.com/blog/archive/2019/05)
- [April 2019 (3)](https://www.equipmentappraisal.com/blog/archive/2019/04)
- [March 2019 (2)](https://www.equipmentappraisal.com/blog/archive/2019/03)
- [February 2019 (3)](https://www.equipmentappraisal.com/blog/archive/2019/02)
- [January 2019 (1)](https://www.equipmentappraisal.com/blog/archive/2019/01)
- [December 2018 (4)](https://www.equipmentappraisal.com/blog/archive/2018/12)
- [November 2018 (4)](https://www.equipmentappraisal.com/blog/archive/2018/11)
- [October 2018 (5)](https://www.equipmentappraisal.com/blog/archive/2018/10)
- [September 2018 (4)](https://www.equipmentappraisal.com/blog/archive/2018/09)
- [July 2018 (5)](https://www.equipmentappraisal.com/blog/archive/2018/07)
- [June 2018 (4)](https://www.equipmentappraisal.com/blog/archive/2018/06)
- [May 2018 (2)](https://www.equipmentappraisal.com/blog/archive/2018/05)
- [April 2018 (4)](https://www.equipmentappraisal.com/blog/archive/2018/04)
- [March 2018 (4)](https://www.equipmentappraisal.com/blog/archive/2018/03)
- [February 2018 (3)](https://www.equipmentappraisal.com/blog/archive/2018/02)
- [January 2018 (4)](https://www.equipmentappraisal.com/blog/archive/2018/01)
- [December 2017 (4)](https://www.equipmentappraisal.com/blog/archive/2017/12)
- [October 2017 (3)](https://www.equipmentappraisal.com/blog/archive/2017/10)
- [September 2017 (3)](https://www.equipmentappraisal.com/blog/archive/2017/09)
- [August 2017 (4)](https://www.equipmentappraisal.com/blog/archive/2017/08)
- [July 2017 (3)](https://www.equipmentappraisal.com/blog/archive/2017/07)
- [June 2017 (4)](https://www.equipmentappraisal.com/blog/archive/2017/06)
- [May 2017 (5)](https://www.equipmentappraisal.com/blog/archive/2017/05)
- [April 2017 (1)](https://www.equipmentappraisal.com/blog/archive/2017/04)
- [March 2017 (4)](https://www.equipmentappraisal.com/blog/archive/2017/03)
- [February 2017 (4)](https://www.equipmentappraisal.com/blog/archive/2017/02)
- [January 2017 (5)](https://www.equipmentappraisal.com/blog/archive/2017/01)
[See more](https://www.equipmentappraisal.com/blog/how-is-replacement-cost-new-different-than-other-appraisals#)
© 2026 Equipment Appraisal Services
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Equipment Appraisal Services",
"url" : "https://www.equipmentappraisal.com/blog/author/equipment-appraisal-services"
},
"datePublished" : "2017-09-26T18:03:00.000Z",
"headline" : "How is replacement cost new different than other appraisals?",
"image" : [ "https://www.equipmentappraisal.com/hubfs/replacement-cost-new.jpg" ],
"mainEntityOfPage" : {
"@id" : "https://www.equipmentappraisal.com/blog/how-is-replacement-cost-new-different-than-other-appraisals",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://www.equipmentappraisal.com/hubfs/Images%202020/equipment_appraisal_services_header_logo.svg"
},
"name" : "Equipment Appraisal Services"
}
}
```