There is so much to consider when planning a change of location for your business – we recommend considering an appraisal for Tangible Personal Property – before you move!
What You Should Know When Moving Your Business To A new Location
What could possibly go wrong? There is always the possibility of something going wrong, when moving your office. It is most likely you will be hiring a mover to assist in getting your ‘Tangible Personal Property’ to the new location. Here’s a few things that could go wrong:
- Movers drop, break or damage a piece of equipment or furniture
- Movers get in a vehicular accident going from A to B damaging your belongings
- Theft of items during the move
- Loss of items during the move
- Movers vehicle is stolen
And these are just the obvious problems that can occur.
That’s What Insurance Is For
While we are not insurance agents to tell you what is covered and what is not, we can tell you the likelihood of your mover carrying enough insurance for your furniture, fixtures and equipment is probably slim. To ensure your property is covered you will want an appraisal for your items.
What is Tangible Personal Property?
Put it this way, if it can be picked up, lifted removed and installed at the new location; if it is furniture, a fixture or a piece of equipment, commonly referred to as FF&E, it is tangible personal property. Depending on the nature of your business, you may not think of these things as having a large value, depending on what type of business you are in and when you compare it to the products / inventory or information you have – but the value of these items definitely adds up quickly if you were have to replace them all suddenly.
Why You Should Get a Tangible Personal Property Appraisal
- To ensure your insurance coverage is adequate for the furniture, fixtures and equipment within your business
- To ensure your mover’s insurance coverage has the ability to cover the loss (their policies, as mentioned are fairly general and probably will not cover that $80,000 printer in your office as an example).
- This type of appraisal will also help when replacing items damaged in a fire, flood or even theft after a break-in as everything is documented.
- It will assist your accountant in determining your assets for your year end financials
By working with Arlene Blake of Absolute Appraisals, a designated member of the Appraisal Institute of Canada, you will have the reports, documentation and ‘independent’ valuation required for insurance purposes, financials, taxes and even financing new purchases in the future. Contact Arlene today.