Valuation is how your equipment is valued in the event that you file a claim under your Owned or Rented equipment policy.
Your policy values your equipment by Replacement Cost which means the cost to repair, rebuild, or replace the lost or damaged property with other property with like kind and quality.
In the event of a claim where repair is required, the insurance carrier will not pay for the damage until the property is actually repaired or replaced. If you wish to settle with Actual Cash Value to receive a check instead of reimbursement for replacement property, you'll have the opportunity to make that decision when working with your claims adjuster.
How to value equipment: Look at the current market rate of the item you are insuring, same make and model. The claims adjuster may correct your declared replacement cost.
For example: You purchased a camera for $4,000 in 2004. The the camera with same make and model can now be purchased for $2,500. The current replacement cost of the camera would be $2,500.