Valuation

Valuation is a fundamental concept in insurance, representing the financial assessment of the worth of an item. Here’s a comprehensive overview to help you understand valuation and its implications in your insurance coverage:

Policy Valuation Basis

• Your policy values equipment on a Replacement Cost basis. This means that coverage extends to the cost of repairing, rebuilding, or replacing lost or damaged property with items of the same or similar kind and quality.

Claim Settlement

• In the event of a claim requiring repair or replacement, reimbursement is provided only after the property has been repaired or replaced.
• For personal gear claims, you have the option to settle on an ‘Actual Cash Value’ basis instead of Replacement Cost. Under this valuation basis, you initially receive 80% of the repair or replacement cost. Upon providing proof of repair or replacement, the remaining 20% is reimbursed.

How to Value Equipment

• Assess the current market rate of the item you own or rent, considering the same make and model. The claims adjuster may adjust your declared replacement cost accordingly.
• For example, if you purchased a camera in five years ago for $4,000, and its current market value (same make and model) is $2,500, the replacement cost value would be $2,500.
• If you are making a claim for rented equipment, the rental house will be able to provide you with the value of the gear upon request.