Services
Industrial Insurance Valuation
Insurable value, claims assessment and photographic inventory for industrial policies, accepted by every insurer in the market. Eliminates under- and overinsurance.
What is it?
What is valuation for industrial insurance?
An industrial policy protects what an asset is really worth — not a euro less (underinsurance), and not a euro more in premium (overinsurance). The correct insurable value is determined with a technical valuation, not with book cost.
At Capital Appraisal we calculate the Reinstatement Cost New (RCN) — what it would cost to replace each asset with an equivalent one at current market prices — and the Actual Cash Value (ACV), which reflects the accumulated physical, functional and economic depreciation. Each policy receives the calculation basis it needs: RCN for new-for-old cover, ACV for actual-value cover, both for mixed policies. The entire calculation is issued under RICS Red Book standards as a regulated firm.
The insurable inventory is built on site with the Valuers App: geo-referenced photography, OCR of technical nameplates, a complete record per asset and direct export to the insurers' platforms. Four of the ten largest European insurers with a presence in Spain work with our reports for industrial policies.
Glossary · acronyms and technical terms
- OCR — Optical Character Recognition
- Optical character recognition: technology that reads text from images (technical nameplates, labels, invoices) and extracts it into structured digital fields. In the Valuers App it recognises make, model, serial number and year of manufacture from industrial nameplates.
- RICS — Royal Institution of Chartered Surveyors
- International professional body founded in 1868 in the United Kingdom under Royal Charter, regulating valuation firms in more than 140 countries. Capital Appraisal is a firm regulated by RICS under the Valuer Registration Scheme (VRS), with periodic audits of processes, ethics and independence.
- RICS Red Book — RICS Valuation – Global Standards
- Global methodological standard published by RICS for professional valuations. It defines the bases of value (Market Value, Fair Value, FMV, OLV, FLV, etc.), the approaches (cost, market, income), the report structure and the independence requirements. It is the reference required by corporate banking, Big Four auditors and European regulators. It operationally implements the IVSC's IVS.
- VRD — Depreciated Replacement Value
- Replacement cost new less accumulated physical, functional and economic depreciation. It is the basis of calculation for insurance policies at real value.
- VRN — Replacement Cost New
- The cost of replacing the asset with a new one equivalent to the current market. It is the basis of calculation for replacement-value insurance policies ("new for old" cover).
What is it for?
Five situations in which you need this service
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Underwrite a new policy with the correct insurable value
Before taking out an industrial policy, the insurable value must be based on a technical valuation, not on book cost. It avoids future underinsurance and claims disputes from day one.
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Renew annual policies with up-to-date RCN/ACV
Replacement costs evolve with industrial inflation. An annual update of insured values keeps cover consistent with the real replacement cost — and the premium aligned with the risk.
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Settle claims on a defensible technical basis
When an industrial claim is opened, the insurer needs an independent technical assessment of the value of the damaged asset. We work 48-hour rush turnarounds with a signed report.
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Size the risk at pre-underwriting
Insurers and brokers need to know the real value of the industrial asset base before quoting the policy. We provide the complete insurable inventory with RCN/ACV calculated and a photographic report.
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Audit the current insured value
Corporate risk departments periodically audit their industrial policies. We detect underinsurance accumulated through replacement-cost inflation or changes to the production base.
What will you receive?
The deliverable
A complete insurable inventory, RCN/ACV values calculated and a geo-referenced photographic report — in the format European insurers accept directly.
- Insurable value report per asset
- Geo-referenced photographic inventory
- Exportable RCN / DRV table
- Coverage recommendations per policy
Typologies we insure
- Industrial machinery and production lines
- Industrial buildings and their contents
- Vehicle fleets and mobile machinery
- Auxiliary equipment and spare parts stock
- Digital assets and intellectual property
Methodology
Physical, functional and economic depreciation
Comparative analysis of equivalent equipment
Compliant with the RICS Red Book and sector regulations
Capabilities
- Calculation of Replacement Cost New (RCN)
- Calculation of Depreciated Replacement Value (DRV)
- Complete insurable inventory with photographs and geolocation
- Detection and correction of underinsurance / overinsurance
- Technical loss assessment for industrial claims
- Annual update of insured values
Sectors
Common questions
Frequently asked questions
- Why do I need a valuation for my industrial insurance policy?
- An up-to-date technical valuation prevents underinsurance (insufficient cover in the event of a loss) and overinsurance (paying excessive premiums). The insurer calculates the premium on the real replacement value, not on the book value, which is usually out of date.
- What is the difference between book value and replacement value?
- Book value is the acquisition cost depreciated according to the tax schedule. Replacement value (as new) is what it would cost today to replace the equivalent asset in the current market. Insurance uses the latter, which can be considerably higher after years of depreciation.
- How often should an insurance valuation be updated?
- We recommend an annual review for critical assets and every 2-3 years for the rest. Significant changes in industrial inflation, acquisitions or disposals require the sum insured to be recalculated to keep cover aligned.
- Do insurers accept your reports?
- Yes. We work regularly with the leading insurers in the Spanish and European markets. Our reports meet the requirements of Mapfre, Allianz, AXA, Zurich, Generali and sector mutuals specialising in industrial risk.
- How do you handle an industrial loss assessment?
- We respond to urgent cases within 48 hours. We inspect the damaged asset, document its pre-loss condition from the prior valuation or the plant's history, calculate the loss value (partial or total) on a reinstatement or depreciated replacement basis according to the policy, and issue an expert report that can be defended before the insurer's claims committee.
- What happens if there is underinsurance on a current policy?
- The average clause in industrial policies reduces the indemnity in proportion to the underinsurance. If an asset is insured at 60% of its real value and suffers a loss, the insurer indemnifies only 60% of the damage. An annual technical valuation prevents this situation and allows sums insured to be renegotiated with the insurer before a loss occurs.
- Does industrial inflation make it necessary to revalue policies?
- Yes. The inflation in industrial replacement costs in Spain has been in the order of 12-20% cumulative over 2022-2024 (steel, electronics, skilled labour). An out-of-date policy is left materially underinsured. The annual technical review of the replacement value is the standard way to keep cover aligned with the real market cost.
Tell us what you need
Step 1 / 7: What stage of the policy are you at?
What stage of the policy are you at?
The purpose determines whether we need RCN, ACV or both.
Need to know the real value of your assets?
Request your valuation. First contact, scope and fees with no obligation, under the RICS Red Book standard.
No obligation · RICS-regulated firm · European coverage