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So let's address what is adequate Proof of Loss. The fixed asset accounting record most often is grossly inadequate for a loss situation. Without going into a long explanation, many fixed asset accounting systems contain data that includes intangibles in the values,non-value entries,allocated values,"ghost"disposed assets,transfers in at net book, donated assets, values net of trade-ins, upgrades, and on and on. Various types of detailed diagrams,photographs and movies/videos of specific assets and installations help. Files that have original purchase costs and descriptive detail are wonderful (but rarely are available). Engineering records may help. Sorry,but in the instance of most facilities/operations the assured is not prepared. Oversight in this regard is strongly suggested. Why do I say that? Because I worked for the pre-eminent"insurance loss machinery expert"'firms(my family three generations). No we were not "mean", yes helping assureds as professionally / sensitively possible, but ultimately to reasonably prove one's loss is the assured's responsibility. Repeating, it is the assured's responsibility to prove the loss, that is, the assets that are/were in place and"in use" and the values of the assets. Yes,for those facilities where the appraiser has had the opportunity to prepare a detailed valuation for fair value accounting the information may be very good, at that instant. This assumes that physical verification of the assets in place has been completed,yes perhaps even inter-related with a"trend and bend"work effort. No, a sloppy trend and bend job will not provide adequate proof of loss. Yes, the information must be kept up to date. The asset listings and value information must be kept up to date either within the fixed asset accounting system or as a separate aside record, incorporating inflation/deflation adjustments,changes in depreciation if appropriate for the policy /contract form, and of course additions or deletions. Critical property and casualty insurance thoughts: • One may rather deal with the IRS than fight an insurance battle. • Understand the insurance policy ("contract") co-insurance clause where assured share in the settlement to the extent(say 80%usual)of the insurance that should have been carried. • The fixed asset accounting record is not adequate proof of loss, I repeat, the fixed asset accounting record is not adequate proof of loss. • Understand the difference between a Replacement Cost policy and an Actual Cash Value policy • Replacement Cost policies are"repair or replace"often up to Actual Cash Value(a litigious issue,also considering the issues of Market Value,depreciation or betterment). • Further, if Replacement Cost, usually the insurance policy (contract) states that Actual Cash Value will be paid until or if the covered assets are replaced (language varies per differing forms),then if replaced the full Replacement Cost is paid. • Actual Cash Value generally considers the current cost new for the same functional utility, less physical depreciation / deterioration. But in some instances ACV is considered to mean the cost of replacing the asset at Market Value(another litigious issue). - 122 -