Valuation of assets for insurance purposes is extremely important as both over and/ or underinsuring could be a false economy and insurers are becoming more and more concerned with unrealistic valuation. Each sum insured should be capable of being substantiated.
insure adequately – no more …no less
We recommend you proceed as follows before you take up any insurance:-
- Buildings (excluding land) – establish current reinstatement values.
- Contents – establish current replacement values.
- Plant & Machinery – establish current replacement values.
- Motor Vehicles – establish current market values.
- Jewellery/Valuables – establish replacement values.
- Liability to third parties – establish potential party liabilities
It is also recommended that value appraisals be carried out regularly perhaps every 12 months, especially in the light of the fluctuation of currencies worldwide and inflation in Africa in particular.
Valuation experts when valuing assets take into accounts the age of assets, use, number of cycles performed, hours utilized, engine types, and the availability and prices in the used plant and machinery market. Buildings are valued to determine reconstruction costs, debris removal, professional fees etc. Jewellery and other valuables are valued to determine replacement costs.
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