Valuation

DEFINITION of Valuation In today’s competitive and unpredictable business world, it is essential for companies to have accurate, timely and cost-effective valuations of their machinery and equipment. There are a wide variety of reasons in which an organization may require equipment valuation services, including the desire or need to sell, confirming you are properly insured, wanting to purchase additional equipment, or simply assessing your company’s overall worth. No matter what the reason, Appraisal Economics’ experienced staff of engineers will ensure you receive the equipment valuation expertise you need and the high quality service you deserve.
Valuation in insurances:An insurance policy's valuation clause is important because it determines the dollar amount that will be paid in the event of a loss. Because different types of valuation clauses can be used, policyholders should review insurance policy details to determine if adequate coverage is in place.
Types of valuation:
1. Insurance valuation: Insurance companies often use unprofessional means to estimate the value of assets for insurance purposes, resulting in either insufficient coverage or over insurance and excessive premiums. Both situations are unwarranted and can be avoided by providing accurate and more relevant valuation analysis. Unprofessional assessments may prove inadequate to replace equipment currently in use, especially for older firms who may have been indexing their figures up on a yearly basis assuming that this will cover any increase in new equipment cost prices or specialized bespoke equipment. Many insurance companies ask for proof of the value of assets before underwriting the coverage policy. Our insurance valuations state the replacement and indemnity values of your property, machinery, equipment and other relevant assets providing you adequate coverage and peace of mind without extra costs and at the same time satisfying the requirements of the insurance companies. Insurance Valuations also confirm casualty insurance coverage is adequate to rebuild the property in event of a casualty.
It may be worth considering a valuation when machinery is older to ensure the correct level of cover and as part of your due diligence process when renewing the policy. The valuation can avoid averages being applied in the event of a claim and can speed up the negotiations with loss adjusters which may accelerate the settlement and reduce the business interruption claim.
2. Valuation of plant and machinery is highly complex in nature as our practice caters to a wide spectrum of industries each having plant and machinery with its own inherent characteristics.Among the issues to be considered in the valuation of plant and machinery are the specific utility or usefulness of industrial property, its contribution to the production of goods and services for which it is designed and deployed.
It also covers estimation in monetary terms the worth of the plant and machinery in existing use or their contribution to the profitability of the business after considering the market situation or standard of maintenance.

Valuation process:
the industries that we give valuation services to:
• Petrochemical
• Oil and gas
• Mining
• Steel
• Power
• Marine

What you get from us?
We will value all of your equipment and assets of your plant.