Do you need an appraisal of your business inventory?
There are several options a to have your business inventory appraised.
This may be for insurance purposes (called new value)
The value of inventory and/or tenant interests to be insured is the new or replacement value. This amount is necessary to be able to purchase the same or equivalent items again after a damage so that you can continue your business operations as before the damage without problems. If you do not have an appraisal report based on article 7:960 BW and the current market value is less than 40% of the new value, only the current market value will be paid out. As the inventory gets older, the amount of the payment will be lower and lower, even if you are insured for new value. In case of a total loss damage, without an appraisal report based on article 7:960 BW, you will not be compensated the full amount.
Article 7:960 BW
The insured shall not receive any payment under the insurance which would put him in a clearly more advantageous position. The preceding sentence shall not apply in the event of a prior assessment of the value of an item of property pursuant to a decision commissioned from an expert or pursuant to a decision of the parties in accordance with the advice of an expert.
Whether this can be for economic purposes
You can also have your business inventory appraised for economic purposes, such as when buying or selling. However, valuation is a complex matter that requires expertise and care. Something best left to the specialists of FH Valuations.
Private sale value
The price that would have been spent by the highest bidding bidder in a private sale when offered free of use and in the manner most suitable for the business equipment, after the best preparation.
Replacement value
The amount required to obtain and prepare for use items equivalent in type, quality, condition and age. If no replacement market exists then the higher of:
- the new-for-old value less an amount for technical obsolescence or
- the new-for-old value less an amount for economic obsolescence.
This takes into account the state of maintenance of the case.