As company operations grow in size and scope, so does the risk of loss relating to property, plant, and equipment.  Navigant’s Property Insurance Valuation team assists the healthcare and life science community by conducting thorough and reliable appraisals to help our clients mitigate the risk of loss, co-insurance penalties on filed claims, and excessive insurance premiums.  Representative projects include:

Healthcare

  • Clinics
  • Hospitals
  • Medical Office Buildings
  • Outpatient Surgery Centers
  • Independent Living Facility
  • Assisted Living Facility
  • Skilled Nursing Facilities

Life Sciences

  • Pharmaceutical Facilities
  • Biotech Facilities
  • Medical Device Facilities
  • Diagnostic Facilities

Risk Factors

Insurance underwriters often scrutinize company estimates and request a third-party appraisal to establish a reasonable basis for insurable replacement cost. Some of the questions to consider include:

  • Has a property insurance underwriter questioned the reasonableness of the property values reported on the company’s Statement of Values (“SOV”)?
  • Is management confident that all insurable property is properly included in the SOV?
  • Is the SOV updated annually to reflect the changes in the asset population due to acquisitions, transfers, repairs, disposals and loss?
  • Does management know with certainty how their reported insurable values have been determined in the past?
  • Does the company rely on accounting fixed asset records?
  • How does the company address inconsistencies between historic cost, acquisition value, repair costs, and expensed asset purchases?
  • Is the industry experiencing a significant change in the cost of material and labor?

 

 

Benefits

Navigant’s independent valuation analysis provides underwriters with confidence of the insurable replacement cost of the property; reducing the time and cost required to obtain appropriate property insurance coverage.

  • Our proven valuation approach ensures that a consistent valuation methodology is applied to all covered assets to minimize the potential of errors that can arise when dispersed company personnel rely on their own methods.
  • We report the replacement cost estimates by location and asset class to help management evaluate property insurance needs, and identify any unique risk concentration issues.
  • The results of our appraisal can be used to allocate premium costs between business units, locations, and cost centers.

Our valuations have been used to correct “mass accounting assets” to provide greater detail for future accounting purposes, identify federal depreciation and property tax savings opportunities for acquisition transactions, and establish accounting records for IFRS reporting. 

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