The Reschini Blog: Know What Your Equipment Is Worth

“Catastrophe” in the property insurance industry denotes a severe natural or man-made disaster that is unusually severe.  In the insurance industry, an event is designated a catastrophe when claims reach at least $25 million.

But an event doesn’t have to be technically classified as a catastrophe for it to feel like one, when you suffer damage to your property and equipment.  That’s why it’s always imperative to know the value of what you own long before it is ever damaged or lost.

Conducting an industrial appraisal remains a vital piece of the process in securing the proper level of insurance coverage.  Establishing a fair and accurate “insured-to-value” ratio can spell the difference between an effective and orderly restoration of operations following an event, and being left with unanticipated expenses and follow-up claim resolution issues.

Commercial property insurance policies generally cover the same causes of loss as most homeowners policies (damage from fire, windstorm, hail, riots, explosions) with some variation, depending on the coverages selected. Flood and earthquake damage are typically excluded.

To put that into perspective, the Insurance Information Institute says that in the U.S. from 1997 to 2016, events involving tornadoes, including other wind, hail and flood losses associated with tornadoes made up 39.9 percent of total catastrophe insured losses, adjusted for inflation. Hurricanes and tropical storms were a close second at 38.2 percent of losses, followed by other wind/hail/flood (7.1 percent) and winter storms (6.7 percent). Terrorism and fires, including wildland fires, accounted for 5.9 percent and 2.0 percent of catastrophe losses, respectively. Civil disorders, water damage and utility services disruption combined represented about 0.2 percent of losses.

The world – both from its natural dangers and those generated by people – can be a dangerous, hazardous place.  Your equipment and property is always vulnerable to damage and loss. The Reschini Group can provide rough estimates on building valuations, locate experts in the appraisal arena, and secure the best possible coverage solutions.

Because an event doesn’t have to fit the description of a catastrophe for it to feel like one, when it happens to you.  Contact the professionals at The Reschini Group to learn more.

Copyright 2021 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.