Forensic valuation challenges insurance claim

Brief

A UK textile factory was destroyed by fire resulting in a total loss and the owner sought to acquire replacement machinery from various global used equipment dealers. However, to what extent were these machines a direct replacement of the original assets?

Work

Our forensic research and valuation analysed historic records and the assets that were operating at the factory prior to the fire.

Our work provided a report to compare and contrast the assets destroyed with the assets acquired and whether they fell within the terms of the insurance policy.

Outcome

It was concluded that the assets acquired were a significant improvement on the assets destroyed and as a result the insured’s claim was disputed.