Client Profile
| Industry: | Manufacturing | | Entity Type: | Corporation | | Ownership Structure: | Private | | Geographic Footprint: | North America | Annual Revenue:
| >$66 million | | Number of Employees: | 250 | |
Issue
A manufacturer of outdoor products acquired a watercraft company and discovered the acquisition did not have a current property valuation. Its insurance broker asked for one as part of the property renewal process.
Solution
Our insurable value appraisal team analyzed the fixed asset ledger and discovered that it did not accurately represent the original costs for the buildings or business personal property because of the purchase price allocations from a recent acquisition. The Statement of Values (SOV) also had inaccurate building square footage, which our team uncovered during our site visit, review of blueprints, and inspection.
Outcome
Through our findings, the acquisition’s overall values increased by 43%, which equated to about $5.1 million in increased building property values and $2.2 million in increased business personal property values. The manufacturer also received accurate and supportive replacement cost new values along with Construction, Occupation, Protection Exposure (C.O.P.E.) and underwriting data, and business personal property values and data that helped it improve its property coverage and premium allocation.