Of course you have insured your buildings and equipment. But what about the insured value in your insurance policy? Can you be sure that your possessions are not over-insured or under-insured? In short: is your risk-management in order?
A loss will cause damage to your buildings or equipment that could cause disputes over your insured values. Moreover, the payment you’ll receive for older possessions will be lower due to depreciation.
This could be prevented if you have an insurance valuation. An insurance valuation, as described in Article 7:960 BW (Dutch Civil Code), offers protection for your business continuity in case of a loss.
Why valuing buildings
Basis of valuation
The basis for insuring a building is Reinstatement Value. This is often misinterpreted: our practice shows that clients sometimes have used values such us Purchase Price, Historical Cost Price, Construction Costs, sometimes even Market Value.
In these cases, where the wrong values are used, there is a real risk of being under-insured. An objective valuation eliminates that risk.
An annual standard indexation leads to a cumulative increase in the insured value. The risk of this is that the reinstatement value after a number of years can substantially deviate from the current construction costs.
Since a standard index for your building may be too high, the chance of being over-insured is realistic. Periodic valuation always guarantees you a correct insurance value.
Why valuing machinery and equipment
Basis of valuation
The basis for insuring machinery and equipment is the Replacement Cost New. This is the amount that is required after a loss to purchase an new replacement.
Dutch insurance policies will typically contain a clause that an indemnification after a loss will be based on Market Value if this is less than 40% of the Replacement Cost New. Therefore, as equipment ages, the potential indemnification will gradually decrease. A valuation report for insurance purposes will guarantee indemnification based on Replacement Cos New.
An independent and objective value judgment
Troostwijk conducts valuations for all imaginable businesses and institutions. As an independent and objective appraiser, we perform valuations all over the world.
Reliable and clear reporting
Troostwijk guarantees a reliable, current valuation report and puts you in a stronger position if you are unexpectedly affected by a loss.
Experienced and skilled appraisers
Our appraisers, many of whom are certified and/or registered with RICS, REV, Vastgoedcert, NRVT, or TMV are experienced and knowledgeable. Each year, we participate in a continuous educational programme by means of external and in-house trainings.
Specialist in your industry
Troostwijk has specialists in every industry. Our experienced and knowledgeable appraisers, closely monitor the developments within the various branches. For example, Troostwijk is the preferred supplier of the Koninklijk Verbond van Grafische Ondernemingen (KVGO).
Research comes first
Research is an essential part of our work. The Research Department continuously examines economic developments and precisely monitors the various markets.
Our method of operation
After the objective, valuation basis, and reporting format for a valuation assignment have been established, the financial component and the delivery deadline is discussed. After approval from the client, the valuation process is started.
Troostwijk uses in house developed valuation systems : “Trevalar and TAC”. This contributes to the efficiency of the valuation process and ensures control over the entire valuation process. The calculation model in the system, underlying data, and report generation ensure uniform judgment.
Our appraisers record the specifications required for an analysis and value judgment. Using elements such as object characteristics, value-influencing factors, research, and the market knowledge of our appraisers, we create the basis for an appraisal and establish it in the report.
Customer satisfaction study
Troostwijk aims high for the quality of its products. This means that we are always seeking new ways to improve our services. After sending your valuation report, we will invite you to participate in our customer satisfaction study.