Valuating a lathe and end mill?

[pmandryk]

Our MakerLab has recently purchased a lathe and an end mill. How do you get the valuation of these items if we needed it for insurance purposes?

 

[Tom Kitta]

Can you simply use purchase price?

 

[DPittman]

Our MakerLab has recently purchased a lathe and an end mill. How do you get the valuation of these items if we needed it for insurance purposes?

By end mill I am assuming you mean a milling machine? As Tom suggested above purchase price would be a good starting point, other than that you could use the classified/kijiji listing of similar machines for current market prices.

 

[pmandryk]

Using the purchase price was what we thought too. The insurance is fine with this but asked to get a replacement price as well.

 

[Susquatch]

Using the purchase price was what we thought too. The insurance is fine with this but asked to get a replacement price as well.

I had to do that for all my farm equipment, tools, and machinery too. I gave them purchase price, current market cost estimate, and what it would cost to buy new. When I look at my detailed policy, I see that they used the current market price to set my premiums, which is ok by me. I gather they do have policy varients that replace with new.

My market cost estimates were just guesses. If it ever gets to the point I need better than that, I'm sure the insurance and I will have a good argument no matter what number I gave them.

 

[Shoprat]

No matter what number you use, it will always be a contentious issue come claim time. I

 

[PeterT]

Just to throw out a fun fact, the price of a new Taiwan made Bridgeport clone mill essentially doubled within about 1.5 year span for a large tool importer based in Calgary. So new vs replacement cost was a healthy spread depending on relative timing. What all factored into this I cant say. Things were kind of volatile through pandemic, FX, supply/demand... Now they carry Chinese/Taiwan hybrids on the floor, although you can still order whatever you want as long as you sign the cheque beforehand.