{"id":4912,"date":"2021-09-24T20:52:37","date_gmt":"2021-09-24T18:52:37","guid":{"rendered":"https:\/\/www.sv-merker.de\/steigende-maschinenpreise-in-der-sachversicherung\/"},"modified":"2021-12-14T09:24:32","modified_gmt":"2021-12-14T08:24:32","slug":"rising-machinery-prices-in-property-insurance","status":"publish","type":"post","link":"https:\/\/www.sv-merker.de\/en\/rising-machinery-prices-in-property-insurance\/","title":{"rendered":"Rising machinery prices in property insurance"},"content":{"rendered":"<div id='full_slider_1'  class='avia-fullwidth-slider main_color avia-shadow  av-small-hide av-mini-hide  avia-builder-el-0  el_before_av_section  avia-builder-el-first   container_wrap fullsize' style=' '  ><div   data-size='featured_large'  data-lightbox_size='large'  data-animation='fade'  data-conditional_play=''  data-ids='4736'  data-video_counter='0'  data-autoplay='true'  data-bg_slider='false'  data-slide_height=''  data-handle='av_slideshow_full'  data-interval='5'  data-class=' image_no_stretch'  data-el_id=''  data-css_id=''  data-scroll_down=''  data-control_layout='av-control-default'  data-custom_markup=''  data-perma_caption='aviaTBperma_caption'  data-autoplay_stopper=''  data-image_attachment=''  data-min_height='0px'  data-src=''  data-position='top left'  data-repeat='no-repeat'  data-attach='scroll'  data-stretch='image_no_stretch'  data-default-height='42'  class='avia-slideshow avia-slideshow-1  av-control-default av-default-height-applied avia-slideshow-featured_large av_slideshow_full  image_no_stretch avia-fade-slider '  itemprop=\"image\" itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/ImageObject\" ><ul class='avia-slideshow-inner ' style='padding-bottom: 42%;' ><li  class=' av-single-slide slide-1 ' ><div data-rel='slideshow-1' class='avia-slide-wrap '   ><img src='https:\/\/www.sv-merker.de\/wp-content\/uploads\/Steigende-Erzeugerpreise--1500x630.png' width='1500' height='630' title='Rising machinery prices' alt='Rising machinery prices can lead to underinsurance in property insurance.'  itemprop=\"thumbnailUrl\"   \/><div class='av-section-color-overlay' style='opacity: 0.1; background-color: #000000; '><\/div><\/div><\/li><\/ul><div class = \"caption_fullwidth av-slideshow-caption caption_bottom\"><div class = \"container caption_container\"><div class = \"slideshow_caption\"><div class = \"slideshow_inner_caption\"><div class = \"slideshow_align_caption\"><div class='avia-caption-content  '  itemprop=\"description\"  ><p>High rates of increase in producer prices can lead to underinsurance in property insurance. Here you can find out who has a particularly acute need for action and what you need to look out for in your insurance contracts now.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n<div id='av_section_1'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-1  el_after_av_slideshow_full  el_before_av_section   container_wrap fullsize' style=' '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div  style='height:40px' class='hr hr-invisible   avia-builder-el-2  el_before_av_one_full  avia-builder-el-first '><span class='hr-inner ' ><span class='hr-inner-style'><\/span><\/span><\/div>\n<div class=\"flex_column av_one_full  flex_column_div first  avia-builder-el-3  el_after_av_hr  avia-builder-el-last  \" style='padding:50px 50px 30px 50px ; background-color:#e4e5e6; border-radius:0px; '><p><div  style='padding-bottom:0px; ' class='av-special-heading av-special-heading-h1  blockquote modern-quote  avia-builder-el-4  el_before_av_textblock  avia-builder-el-first  '><h1 class='av-special-heading-tag  av-mini-font-size-overwrite av-mini-font-size-24'  itemprop=\"headline\"  >RISING MACHINERY PRICES &#8211; HOW TO PROTECT YOUR PROPERTY INSURANCE AGAINST UNDERCOVERAGE<\/h1><div class='special-heading-border'><div class='special-heading-inner-border' ><\/div><\/div><\/div><br \/>\n<section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:18px; '  itemprop=\"text\" ><p><em>24th September 2021 by P. Merker<\/em><\/p>\n<p>High rates of increase in producer prices can lead to high underinsurance in industrial property insurance. Here you can find out who is in particularly acute need of action. We explain what you need to look out for in your insurance contracts now and give you a 10-point roadmap.<\/p>\n<\/div><\/section><\/p><\/div>\n\n<\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='av_section_2'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-6  el_after_av_section  el_before_av_section   container_wrap fullsize' style=' margin-top:0px; margin-bottom:0px; '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_full  flex_column_div first  avia-builder-el-7  avia-builder-el-no-sibling  \" style='padding:50px 50px 30px 50px ; background-color:#e4e5e6; border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:18px; '  itemprop=\"text\" ><h2>TABLE OF CONTENTS<\/h2>\n<h3><a href=\"#1\"><span style=\"color: #5f6062;\">1. HISTORICAL RATES OF INCREASE IN PRODUCER PRICES<\/span><\/a><\/h3>\n<h3><a href=\"#2\"><span style=\"color: #5f6062;\">2. WHY THIS IS IMPORTANT FOR YOUR PROPERTY INSURANCE<\/span><\/a><\/h3>\n<h3><a href=\"#3\"><span style=\"color: #5f6062;\">3. WHICH MACHINES AND INDUSTRIES ARE PARTICULARLY AFFECTED<\/span><\/a><\/h3>\n<h3><a href=\"#4\"><span style=\"color: #5f6062;\">4. WHAT TO DO &#8211; YOUR 10-POINT ROADMAP AND WHICH INSURANCE CLAUSES TO LOOK OUT FOR<\/span><\/a><\/h3>\n<ol>\n<li><span style=\"color: #5f6062;\"><a style=\"color: #5f6062;\" href=\"#4\">Provisional cover or provisional positions<\/a><\/span><\/li>\n<li><span style=\"color: #5f6062;\"><a style=\"color: #5f6062;\" href=\"#5\">Underinsurance waiver <\/a><\/span><\/li>\n<li><span style=\"color: #5f6062;\"><a style=\"color: #5f6062;\" href=\"#6\">Valuation adjustment clauses (also: value increase clauses)<\/a><\/span><\/li>\n<li><span style=\"color: #5f6062;\"><a style=\"color: #5f6062;\" href=\"#6\">The correct calculation of value adjustments<\/a><\/span><\/li>\n<\/ol>\n<\/div><\/section><\/div>\n\n<\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='1'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-9  el_after_av_section  el_before_av_section   container_wrap fullsize' style=' '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_full  flex_column_div first  avia-builder-el-10  avia-builder-el-no-sibling  \" style='padding:50px 50px 30px 50px ; background-color:#e4e5e6; border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:18px; '  itemprop=\"text\" ><h2>HISTORICAL RATES OF INCREASE IN PRODUCER PRICES<\/h2>\n<p>Producer prices of industrial products were a whopping 12 per cent higher in August 2021 than in August last year. This means that German manufacturers raised their prices in August by the most in almost 47 years.<\/p>\n<div id=\"attachment_5046\" style=\"width: 1182px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5046\" class=\"wp-image-5046 size-full\" src=\"https:\/\/www.sv-merker.de\/wp-content\/uploads\/PRODUCER-PRICES.png\" alt=\"Producer prices of industrial products were a whopping 12 per cent higher in August 2021 than in August last year.\" width=\"1172\" height=\"672\" srcset=\"https:\/\/www.sv-merker.de\/wp-content\/uploads\/PRODUCER-PRICES.png 1172w, https:\/\/www.sv-merker.de\/wp-content\/uploads\/PRODUCER-PRICES-300x172.png 300w, https:\/\/www.sv-merker.de\/wp-content\/uploads\/PRODUCER-PRICES-1030x591.png 1030w, https:\/\/www.sv-merker.de\/wp-content\/uploads\/PRODUCER-PRICES-768x440.png 768w, https:\/\/www.sv-merker.de\/wp-content\/uploads\/PRODUCER-PRICES-705x404.png 705w\" sizes=\"auto, (max-width: 1172px) 100vw, 1172px\" \/><p id=\"caption-attachment-5046\" class=\"wp-caption-text\">Development of producer prices of industrial products (domestic sales) in Germany compared with the same month of the previous year\/previous month from August 2020 to August 2021 (Source: <span style=\"color: #5f6062;\"><a style=\"color: #5f6062;\" href=\"http:\/\/statista.de\" target=\"_blank\" rel=\"noopener\">Statista<\/a><\/span>)<\/p><\/div>\n<p>For comparison: In December 1974, the price increase was 12.4 percent, due to the first oil crisis.<\/p>\n<p>Producer prices are the prices ex factory &#8211; i.e. before they are further processed or go on sale. They are regarded as an early indicator of inflation, which at 3.9 per cent is already higher than at any time since 1993.<\/p>\n<p>Besides energy costs, the main price drivers are intermediate products such as wood and steel, as the following examples show.<\/p>\n<\/div><\/section><br \/>\n<div class='avia-data-table-wrap avia_responsive_table'><table class='avia-table avia-data-table avia-table-1  avia-builder-el-12  el_after_av_textblock  el_before_av_textblock  avia_pricing_minimal '  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/Table\" ><tbody><tr class=''><td class=''>Energy <\/td><td class=''>+ 24 %<\/td><\/tr><tr class=''><td class=''>Intermediate goods<br \/>\n<\/td><td class=''>+ 17 %<\/td><\/tr><tr class=''><td class=''>Softwood lumber<\/td><td class=''>+ 124 %<\/td><\/tr><tr class=''><td class=''>Secondary raw materials<\/td><td class=''>+ 104 %<\/td><\/tr><tr class=''><td class=''>Wood packaging material<\/td><td class=''>+ 89 %<\/td><\/tr><tr class=''><td class=''>Reinforcing steel in bars<\/td><td class=''>+ 87 %<\/td><\/tr><tr class=''><td class=''>Metals<\/td><td class=''>+35 %<\/td><\/tr><tr class=''><td class=''>Pig iron, steel and ferro-alloys<\/td><td class=''>+ 58 %<\/td><\/tr><tr class=''><td class=''>Non-ferrous metals and their semi-finished products<\/td><td class=''>+ 23 %<\/td><\/tr><tr class=''><td class=''>Basic chemical products <\/td><td class=''>+ 20 %<\/td><\/tr><\/tbody><\/table><\/div><style type='text\/css'><\/style><br \/>\n<section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:14px; '  itemprop=\"text\" ><p><span style=\"color: #5f6062;\"><a style=\"color: #5f6062;\" href=\"https:\/\/www.destatis.de\/DE\/Presse\/Pressemitteilungen\/2021\/09\/PD21_442_61241.html\" target=\"_blank\" rel=\"noopener\"><em>Source: Statistisches Bundesamt<\/em><\/a><\/span><\/p>\n<\/div><\/section><\/p><\/div>\n\n<\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='2'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-14  el_after_av_section  el_before_av_section   container_wrap fullsize' style=' margin-top:0px; margin-bottom:0px; '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_full  no_margin flex_column_div first  avia-builder-el-15  avia-builder-el-no-sibling  \" style='background: #e4e5e6; padding:50px 50px 30px 50px ; background-color:#e4e5e6; border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:18px; '  itemprop=\"text\" ><h2>WHY THIS IS IMPORTANT FOR YOUR PROPERTY INSURANCE<\/h2>\n<p>When prices for commercial products rise, this can quickly lead to underinsurance in your business property insurance.<\/p>\n<p>In property insurance, the replacement values of your machinery, plant and operating equipment are always insured (because in the event of a claim you usually also have to procure everything anew). In other words, the replacement prices for machinery and equipment are already directly affected by current price increases. The insured new values may already be higher than the established sum insured &#8211; underinsurance is imminent. (Here we provide detailed information on the <a href=\"https:\/\/www.sv-merker.de\/maschinenversicherung-versicherungssumme\/\">risks of underinsurance<\/a>.)<\/p>\n<\/div><\/section><\/div>\n\n<\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='3'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-17  el_after_av_section  el_before_av_section   container_wrap fullsize' style=' '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_full  flex_column_div first  avia-builder-el-18  avia-builder-el-no-sibling  \" style='padding:50px 50px 30px 50px ; background-color:#e4e5e6; border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:18px; '  itemprop=\"text\" ><h2>WHICH MACHINES AND INDUSTRIES ARE PARTICULARLY AFFECTED<\/h2>\n<p>It is true that not all industries and machine types are equally affected by the current developments. Nevertheless, we recommend that all companies review their insurance sums. In any case, it is an essential part of ongoing risk management to review and adjust coverage annually. Ultimately, you as the policyholder are responsible for your insurance values (By the way: feel free to pass on the responsibility to us as experts).<\/p>\n<p>We observe the market closely and our daily valuation practice shows that the following machinery and equipment are currently particularly affected (no claim to completeness!):<\/p>\n<ul>\n<li>Inline machines<\/li>\n<li>Printing machines<\/li>\n<li>Harvesters<\/li>\n<li>Compressors<\/li>\n<li>Air conditioners<\/li>\n<li>Heat exchangers<\/li>\n<li>Plastics machinery<\/li>\n<li>Chemical plants<\/li>\n<li>Pipelines<\/li>\n<li>Storage tanks<\/li>\n<li>filling plants.<\/li>\n<\/ul>\n<p>Accordingly, we see an acute need for action, especially for companies in the following sectors (again, we do not guarantee completeness):<\/p>\n<ul>\n<li>Printing plants<\/li>\n<li>Corrugated board manufacturers and processors<\/li>\n<li>Plastics processing industry<\/li>\n<li>Process engineering companies such as the petrochemical industry<\/li>\n<li>Pharmaceuticals<\/li>\n<li>Food industry<\/li>\n<li>Power plant industry<\/li>\n<li>Bottling plants<\/li>\n<li>Dairies<\/li>\n<li>Tank farms<\/li>\n<li><\/li>\n<\/ul>\n<p>Contact us if you are unsure (Tel. 0 40 602 13 33 or via our <a href=\"https:\/\/www.sv-merker.de\/en\/contact\/#contactform\">contact form<\/a>)!<\/p>\n<\/div><\/section><\/div>\n\n<\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='4'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-20  el_after_av_section  el_before_av_section   container_wrap fullsize' style=' '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_full  flex_column_div first  avia-builder-el-21  avia-builder-el-no-sibling  \" style='padding:50px 50px 30px 50px ; background-color:#e4e5e6; border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:18px; '  itemprop=\"text\" ><h2>WHAT TO DO &#8211; YOUR 10-POINT ROADMAP AND WHICH INSURANCE CLAUSES TO LOOK OUT FOR<\/h2>\n<blockquote>\n<p><span style=\"color: #90111c;\">1. Check whether your insurance contract contains a provisional cover insurance or corresponding provisional positions.<\/span><\/p>\n<\/blockquote>\n<h3><em><strong><span style=\"color: #5f6062;\"> <br class=\"avia-permanent-lb\" \/>PROVISIONAL COVER OR PROVISIONAL POSITIONS<\/span><\/strong><\/em><\/h3>\n<p>Provisional insurance includes newly added risks in the insurance cover. This means that a gap in coverage is closed for a transitional period (for example until the next premium invoice). It is usually not a stand-alone insurance policy. But beware: Sometimes it is only valid if you inform the insurer about the increase in the inventory value! Until the next premium invoice, the increased risk is then usually co-insured free of charge.<\/p>\n<blockquote>\n<p><span style=\"color: #90111c;\">2. Ask your insurance broker and\/or your insurer whether the current price increases are covered by the provisional cover.<\/span><\/p>\n<\/blockquote>\n<blockquote>\n<p><span style=\"color: #90111c;\">3. Clarify whether the provisional cover also covers increases in value or insufficient valuations (and not only changes in stock) and if so, whether the amount is sufficient.<\/span><\/p>\n<\/blockquote>\n<blockquote>\n<p><span style=\"color: #90111c;\">4. Inform your insurance company about the coverage gap.<\/span><\/p>\n<\/blockquote>\n<blockquote>\n<p><span style=\"color: #90111c;\">5. Have the provision adjusted if necessary.<\/span><\/p>\n<\/blockquote>\n<blockquote>\n<p><span style=\"color: #90111c;\">6. Possibly have an under-insurance waiver agreed, which will help you &#8211; to a certain extent. Check your contracts!<\/span><\/p>\n<\/blockquote>\n<\/div><\/section><\/div>\n\n<\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='5'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-23  el_after_av_section  el_before_av_section   container_wrap fullsize' style=' '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_full  flex_column_div first  avia-builder-el-24  avia-builder-el-no-sibling  \" style='padding:50px 50px 30px 50px ; background-color:#e4e5e6; border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:18px; '  itemprop=\"text\" ><h3><em><strong><span style=\"color: #5f6062;\">WAIVER OF UNDERINSURANCE<\/span><\/strong><\/em><\/h3>\n<p>Underinsurance waiver means that in the event of a claim &#8211; for example, in the event of a fire &#8211; the insurer waives its right to check the sum insured and compensates the claim up to a maximum of the agreed sum insured.<\/p>\n<p>We give an example:<\/p>\n<p>Your machinery has been valued at EUR 10 million replacement value. Therefore, your sum insured is also set at 10 million EUR. A major fire occurs &#8211; in which half of your machines are destroyed in terms of value.<\/p>\n<p>In the meantime, the price increase has added 10 percent. The replacement values (i.e. the new values) are now EUR 11 million, the loss is therefore EUR 5.5 million.<\/p>\n<p>Since the coverage ratio is only 91 per cent (10 million \/ 11 million), only 91 per cent of the damage, i.e. 5.005 million EUR, will be compensated.<\/p>\n<p>If an underinsurance waiver has been agreed, the full damage of 5.5 million EUR will be reimbursed.<\/p>\n<p>But beware! If there is a total loss in our example, only 10 million euros will be paid by the insurance company, because that is the agreed sum insured!<\/p>\n<blockquote>\n<p><span style=\"color: #90111c;\">7. Consult with your broker and\/or insurance company whether your underinsurance waiver (still) meets your individual risks in the current situation.<\/span><\/p>\n<\/blockquote>\n<blockquote>\n<p><span style=\"color: #90111c;\">8. Check your contracts for additional value clauses.<\/span><\/p>\n<\/blockquote>\n<p>Experience shows that a sum insured has a life span of 5 &#8211; 10 years with &#8220;good care&#8221;. In the current situation, it is important to apply the indices correctly if you determine your sum insured by means of valuation adjustment clause.<\/p>\n<\/div><\/section><\/div>\n\n<\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='6'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-26  el_after_av_section  el_before_av_section   container_wrap fullsize' style=' '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_full  flex_column_div first  avia-builder-el-27  avia-builder-el-no-sibling  \" style='padding:50px 50px 30px 50px ; background-color:#e4e5e6; border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '  style='font-size:18px; '  itemprop=\"text\" ><h3><strong><em><span style=\"color: #5f6062;\">VALUATION<\/span><span style=\"color: #5f6062;\"> ADJUSTMENT \/ VALUE SURCHARGE CLAUSES (ALSO: VALUE INCREASE CLAUSES)<\/span><\/em><\/strong><\/h3>\n<p>Adjustment clauses in industrial property insurance help to adjust the sums insured annually &#8211; and always for the new insurance period.<\/p>\n<p>Usually, the sums insured are calculated on the basis of the respective new value of the machinery and equipment. Changes to the inventory, additions and disposals and, of course, price developments mean that the insured value fluctuates constantly. To ensure that price changes in the new values do not lead to underinsurance or overinsurance, the policyholder must constantly adjust his sum insured to the current development.<\/p>\n<p>With value adjustment clauses, the adjustment of the sum insured can be calculated year by year without having to carry out an individual assessment each time.<\/p>\n<p>And it works like this:<\/p>\n<p>Based on the current new values, a basic sum is calculated for the items to be insured. The basic sum is based on prices from 1970, 1980, 2010 or 2015 (this is usually determined by the insurance companies).<\/p>\n<p>The value supplement is calculated using index figures from the Federal Statistical Office. The sum insured is therefore the basic sum plus the value supplement.<\/p>\n<p>If a value adjustment clause is agreed, the insurance company is liable for a maximum of the basic sum plus twice the value supplement in the event of a claim.<\/p>\n<p>The prerequisite for this is that both the basic sum and the simple value supplement have been assessed by an <a href=\"https:\/\/www.sv-merker.de\/en\/experts-machine-valuations\/experts-for-machinery\/\">expert<\/a>.<\/p>\n<p>The additional value clauses therefore also protect to a certain extent against inflationary price developments during the year.<\/p>\n<h3><em><strong><span style=\"color: #5f6062; font-size: 20px;\"> <br class=\"avia-permanent-lb\" \/>THE CORRECT CALCULATION OF THE VALUE ADJUSTMENT<\/span><\/strong><\/em><\/h3>\n<p>In order to determine the value surcharges, the price tables of the Federal Statistical Office, Fachserie 17 Reihe 2, are usually used. For these values, about 6,300 companies are asked about the current prices of about 1,350 types of goods.<\/p>\n<p>From these, the price increases of individual commercial goods &#8211; from low-fat curd cheese to articulated lorries &#8211; are determined.<\/p>\n<p>However, these price data and their rates of increase always refer to the ready-to-deliver product ex works. This means that these indices do not include freight, packaging and assembly and their price increases. This can lead to considerable inaccuracies, because the assembly costs often develop in a significantly different way in terms of price than the pure manufacturing costs of a machine. The correct application of the specific designated price table 610 of the FSO for repair, maintenance and installation is complicated and is therefore mostly omitted.<\/p>\n<p>There are separate price series for plants and equipment insured for electronics, as a distinction is made here between electronics and technology.<\/p>\n<p>In addition, some insurance companies work with their own industry indices. Therefore, in order to determine the sum insured by means of value surcharges, the price indices must be applied correctly.<\/p>\n<p>The more incorrectly the value supplements have been determined, the more volatile the price fluctuations are and the longer ago the last expert appraisal was, the sooner the sum insured for the next insurance year should be determined by a new appraisal.<\/p>\n<blockquote>\n<p><span style=\"color: #90111c;\">9. Check when your sum insured was last determined by an expert.<\/span><\/p>\n<\/blockquote>\n<blockquote>\n<p><span style=\"color: #90111c;\">10. Call us (tel. +49 40 602 13 33).<\/span><\/p>\n<\/blockquote>\n<\/div><\/section><\/div><\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='6'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-29  el_after_av_section  el_before_av_section   container_wrap fullsize' style=' '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div  style='height:100px' class='hr hr-invisible   avia-builder-el-30  el_before_av_one_fourth  avia-builder-el-first '><span class='hr-inner ' ><span class='hr-inner-style'><\/span><\/span><\/div>\n<div class=\"flex_column av_one_fourth  flex_column_div av-zero-column-padding first  avia-builder-el-31  el_after_av_hr  el_before_av_three_fourth  \" style='border-radius:0px; '><div  class='avia-image-container  av-styling-circle    avia-builder-el-32  avia-builder-el-no-sibling  avia-align-center '  itemprop=\"image\" itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/ImageObject\"  ><div class='avia-image-container-inner'><div class='avia-image-overlay-wrap'><img class='avia_image' src='https:\/\/www.sv-merker.de\/wp-content\/uploads\/Ohne-Titel-1000-x-1500-px-2-300x300.png' alt='Philip Merker Expert for the appraisal of machinery and technical equipment' title='Philip Merker  Expert for the appraisal of machinery and technical equipment' height=\"300\" width=\"300\"  itemprop=\"thumbnailUrl\"  \/><\/div><\/div><\/div><\/div><div class=\"flex_column av_three_fourth  flex_column_div av-zero-column-padding   avia-builder-el-33  el_after_av_one_fourth  el_before_av_hr  \" style='border-radius:0px; '><section class=\"av_textblock_section \"  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock  '   itemprop=\"text\" ><p>Philip Merker, MBA<\/p>\n<div>\n<div>\n<div>\n<h2><a href=\"https:\/\/www.sv-merker.de\/en\/\">Merker Industriebewertungen<\/a><\/h2>\n<\/div>\n<section>\n<div>\n<p>Certified expert for the evaluation of machinery and technical equipment (DIN EN ISO \/ IEC 17024)<\/p>\n<p>Colonnaden 46, 20354 Hamburg<\/p>\n<p>Telephon +49 40 602 13 33<br \/>\n<a href=\"https:\/\/www.sv-merker.de\/en\/contact\/#contactform\">Email \u00adinfo@sv-merker.de<\/a><\/p>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div><\/section><\/div><div  style='height:100px' class='hr hr-invisible   avia-builder-el-35  el_after_av_three_fourth  avia-builder-el-last '><span class='hr-inner ' ><span class='hr-inner-style'><\/span><\/span><\/div>\n<\/div><\/div><\/div><!-- close content main div --><\/div><\/div><div id='av_section_10'  class='avia-section main_color avia-section-no-padding avia-no-border-styling avia-bg-style-scroll  avia-builder-el-36  el_after_av_section  avia-builder-el-last   container_wrap fullsize' style=' '  ><div class='container' ><div class='template-page content  av-content-full alpha units'><div class='post-entry post-entry-type-page post-entry-4912'><div class='entry-content-wrapper clearfix'>\n<div class=\"flex_column av_one_full  flex_column_div av-zero-column-padding first  avia-builder-el-37  el_before_av_hr  avia-builder-el-first  \" style='border-radius:0px; '><\/div><div  style='height:10px' class='hr hr-invisible   avia-builder-el-39  el_after_av_one_full  avia-builder-el-last '><span class='hr-inner ' ><span class='hr-inner-style'><\/span><\/span><\/div>\n<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":5,"featured_media":4737,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[128],"tags":[],"class_list":["post-4912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-insurance"],"_links":{"self":[{"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/posts\/4912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/comments?post=4912"}],"version-history":[{"count":0,"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/posts\/4912\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/media\/4737"}],"wp:attachment":[{"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/media?parent=4912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/categories?post=4912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sv-merker.de\/en\/wp-json\/wp\/v2\/tags?post=4912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}