Select values deliberately
Record the machine’s configuration, attachments, condition and replacement options. Review whether the policy uses actual cash value, replacement cost, agreed value or another method, including settlement conditions. A value entered on a schedule does not necessarily guarantee that amount will be paid after a loss.
Identify costs beyond the machine
Freight, duties, installation, recovery, debris removal and specialized transport can be material. Ask which costs are included, separately limited or excluded. Underground recovery and remote-site access deserve particular attention; a replacement price from a dealer may omit those expenses.
Update values and interests
Review additions, disposals, rebuilds and leased units during the policy period. Identify lenders and lessors accurately, and compare insurance requirements with the settlement provisions. Retain invoices and valuation support so the company can substantiate its interest in equipment if a covered loss occurs.
Illustrative review scenario
A machine has a substantial recent rebuild, but its scheduled value still reflects the original used purchase price. Management expects a replacement-cost settlement without checking the form. Review the valuation provision, supporting invoices and current replacement options. Also separate the cost of the unit from freight, recovery and installation expenses that may have different limits or treatment. Does the value include a major rebuild or specialized attachment installed after purchase? Review supporting invoices and the policy’s valuation method before deciding whether the current schedule remains appropriate.