Insurance and replacement-cost equipment appraisals.
An insurance appraisal from Lukes & Lukes establishes Replacement Cost New for your machinery, so you carry coverage that matches the real cost to replace the asset. Independent, USPAP-compliant, and prepared to withstand lender, SBA, IRS, audit and legal review.
Which value applies
Insure to value, settle on documented numbers.
For insurance, the governing premise is Replacement Cost New (RCN): the current cost to replace an asset with a new one of like utility, before any deduction for age or wear. RCN sets the limit you should carry so a covered loss rebuilds the line, not a fraction of it. Where a policy or claim calls for it, we also report Fair Market Value (FMV), the price a willing buyer and seller would agree to, or actual cash value, which is RCN less depreciation. We determine the premise the situation requires and defend it on the page.
A documented schedule does two things at once. It supports agreed value at binding, so coverage is not a guess. And it gives you a baseline when a loss happens, so the claim is settled against an independent number rather than negotiated from memory.
- Replacement Cost New (RCN): the current cost to replace each asset with new, like-utility equipment, for insure-to-value limits
- Agreed value support: a documented schedule underwriters can bind to, instead of a blanket estimate
- Actual cash value: RCN less depreciation, where the policy settles on a depreciated basis
- Fair Market Value (FMV): where a claim, buyout or reporting question calls for market value
- Loss documentation: an itemized baseline that anchors a claim to evidence, not recollection
Related work
Different trigger, different premise.
Coverage is one reason to value a fleet. When the same assets back a loan, a deal or financial reporting, the premise changes. Start with the situation, and we map it to the right value. We appraise across every asset class, from a single line to a multi-site fleet.
Who orders it
The people who set coverage and settle claims.
Risk managers and CFOs order an insurance appraisal to set limits that match the cost to replace the fleet. Insurance brokers and underwriters order one to bind agreed value on a documented basis. Owners order one to confirm they are neither underinsured nor paying premiums on inflated numbers, and to hold a record before a loss occurs. Each of them needs a schedule that holds up when a claim is on the table.
What you get
One file. Every value, fully supported.
You receive a complete report, not a printout: a written narrative of scope and methodology, an itemized appendix valuing each asset, and photographs from inspection. Independent and certified, with senior review before it leaves.
- Cost, market and income approaches applied by a certified appraiser, not a database
- Itemized appendix, narrative and photographs in every file
- Independent senior review on every report
- Claim-ready: Jesse Lukes came up inside the bank at BMO, originating loans and reviewing collateral, so the file reads the way an underwriter and adjuster read it
Common questions
Answers, up front.
What is Replacement Cost New?
Replacement Cost New (RCN) is the current cost to replace an asset with a new one of like utility, before any deduction for age, wear or condition. For insurance, RCN sets the limit you should carry so a covered loss can rebuild the line at today's cost. It differs from actual cash value, which is RCN less depreciation, and from Fair Market Value (FMV), which reflects what a willing buyer and seller would agree to.
How do I make sure my equipment is insured to value and not underinsured?
Start with an independent appraisal that establishes Replacement Cost New for each asset. Underinsurance usually comes from carrying limits based on book value or an old estimate rather than current replacement cost, which leaves a gap at claim time and can trigger a coinsurance penalty. A documented RCN schedule sets a defensible limit and gives your broker a basis to bind the right coverage.
What is agreed value?
Agreed value is coverage where you and the insurer fix the insured amount in advance, so a covered loss is paid to that figure without a coinsurance dispute. Underwriters bind agreed value when the amount is supported by documentation. An independent, itemized appraisal gives them that support, which is why an appraisal often precedes an agreed-value endorsement.
How does an appraisal help when I file a claim?
It gives you an independent, itemized baseline of what each asset was and what it cost to replace, recorded before the loss. That turns a claim into a documented matter rather than a negotiation from memory, and the adjuster works from evidence instead of estimates. The same narrative, appendix and inspection photographs that support coverage support the claim.
Are your insurance appraisals independent and accepted by underwriters and adjusters?
Yes. Reports are USPAP-compliant, prepared by a NEBB-certified Machinery & Equipment Appraiser (CMEA), and independent of the placement. They are built to withstand lender, SBA, IRS, audit and legal review, which is the same standard underwriters and adjusters apply when coverage and claims are at stake.