Insurance companies need to feel confident in how much they insure your asset for, and the premium they set. For this reason, they need to know the value of each asset they insure.
Who benefits from an asset valuation?
Any business, whether small, medium, or large, that has physical assets worth $500,000 or more can benefit from having those assets valued, including businesses in the aviation, food processing, manufacturing, education, not-for-profit industries, and various others.
We can provide insurance valuations for a wide variety of assets, including fixed assets such as land, buildings, plant and equipment, and other assets like furniture, vehicles, and even fine art. Our asset valuers are experienced professionals – they’ll provide a clear, reasoned, valuation of your asset – so you can be confident its accurate.
Asset valuation example - high precision asset (case study)
Precision Manufacturing Solutions are a mid-sized manufacturing company. They operate a high-precision CNC milling machine which is critical to production.
As the machine aged, the company wanted to make sure the insurance coverage reflected its current value, and the likely replacement cost should it be damaged. In June 2024, the valuations team at Marsh assessed the CNC milling machine (among other assets). The valuation considered the machine's age, condition, market trends, and replacement costs and the report gave the business an accurate replacement value, which was significantly higher than their previous estimate. The new valuation not only gave them peace of mind but also meant they will be insured for the full replacement value in the event of a loss.
Six months later, in December 2024, the company suffered a catastrophic fire at the manufacturing plant, which severely damaged the high-precision CNC milling machine. The company’s management team was fast to act despite this enormous setback, and because of the valuation, they could quickly file a claim.
With a thorough and recent valuation to hand, the insurance company could process the claim efficiently. The documented value of the CNC milling machine allowed the company to receive a payout that covered the full replacement cost of the equipment.
The company’s decision to get a valuation protected them from underinsurance. The timely and full coverage of their loss helped them navigate through a difficult period with minimal downtime and reinforced the company’s confidence in the importance of regular asset valuations.
This case study, while fictional, is based on real-life circumstances, but does not represent any specific real-life individuals, events, or organisations.
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Why Marsh?
Why choose Marsh for your asset valuation?
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Frequently asked questions
We suggest that you start your valuation process 3 to 4 weeks before your insurance renewal. If your last valuation was over two years ago, you’ll need a new one as soon as possible to meet your insurance and reporting obligations.
A lot can change in a year, the value of assets can be affected by economic conditions, supply chain disruptions, labour market impacts, and much more. A regular valuation doesn’t just help insurance companies insure accurately – it also protects you by ensuring your assets aren’t being undervalued and helps with your financial reporting.
Our team is made up of Registered Valuers and certified Plant and Equipment specialists. They’re registered with the Property Institute of New Zealand (PINZ) and the New Zealand Institute of Valuers (NZIV). Our valuations comply with International Valuations Standards and International Financial Reporting Standards.
We collect information that assists brokers when placing your insurance. This includes your COPE data, which is information related to construction, occupancy, protection and exposure.
You’ll need an assessment of assets to establish reinstatement costs, and natural catastrophe modelling if you’re a large corporation. Our holistic approach to servicing risk means we’ve got this covered.
An assessment will include:
- Reinstatement cost
- Removal of debris
- Cost inflationary provisions
- Indemnity value and inflationary provisions.
Marsh Limited (NZBN 9429040918792)(“Marsh”) arranges the insurance and is not the insurer. This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh on request. This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.
*Interest and additional fees may be applicable. Terms and conditions apply.
LCPA 25/NZ034