With over $100 billion in computer hardware equipment added to the nation’s businesses and homes last year, loss by damage, fire and theft makes computer valuation an important issue for risk managers and claims adjusters. This article discusses current practices in claims departments.

Determining loss compensation for computer claims presents unique challenges to insurers because the computer marketplace behaves differently from other machinery and equipment markets. This article examines some of the relevant appraisal issues that should be considered by claims adjusters and examiners in valuing computer hardware for loss compensation purposes.