Manufacturing Industry Project Recaps: Fire Damaged Mining Equipmnet
ILC Assignment:
Site visit of a loss event in which various equipment was damaged as the result of a fire.
Perform a visual inspection of damages to the equipment, including an inventory of all equipment in the facility, to determine full replacement costs for coinsurance purposes.
Determine if the equipment appears to be a candidate for cleaning/repair, or if new replacements will be required.
Review any submitted repair/ replacement estimate for equipment and validate scope.
Acquire new replacement costs and estimate the actual cash value for items deemed destroyed.
ILC Inspection Details:
Upon inspection, ILC discovered that most of the equipment was located in the portion of the building where the fire had originated.
Inside the machine shop, ILC found various pieces of equipment, including manual lathes, mills, CNC machinery, and a forklift.
The machinery inspected by ILC did not appear to be candidates for repair or restoration with a few exceptions. At the back of the facility, ILC documented an air compressor and air dryer that both were candidates for repair.
Summary:
ILC determined the full replacement value of the machinery and equipment in the facility to be $1,573,000.
Upon our final review of the damaged equipment, ILC validated a total of $720,989 for the full replacement and repair value of the damaged equipment.
ILC determined the ACV of the fire damage equipment to be a total of $325,376.
