Insurance value in machinery and equipment appraisal is dependent on the insurance policy definition.  One definition may be insurance cost new which is the replacement cost new minus the cost of excluded items that are outlined in the insurance policy.  Another definition may be the insurance value depreciated which is the replacement cost minus any accrued depreciation which is outlined in the policy.  Since there are many variations to insurance policies, each policy must be examined to define the method of appraising the value of a machine.

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