FINE ART INSURANCE COVERAGE APPRAISAL
An insurance coverage appraisal is used in
with your insurance policy. It should define your level of compensation
in the event of a loss and permit the insurance company to quantify its
risk. Additionally, an insurance coverage appraisal should:
- Document ownership of the property.
- Clearly estimate and justify the replacement value of the property.
- Support conclusions with facts based on market research and accepted
principles of valuation as outlined by the American Association of
- Keep valuations up-to-date and timely, as
the art market changes over time.
Insurance claim fraud is a major problem for
insurance companies. In recent years, insurance companies have become more concerned about the competency
and expertise of the appraiser and the accuracy of fine art property appraisals used in insurance claims.
- Unrealistic appraisals have been identified as a factor
contributing to the billion dollar a year insurance fraud problem.
which suggest overvaluation of objects, are subject to close scrutiny in
- Insurance companies are aware of
professional appraisal standards.
Key issues for insurance appraisal consumers to
- Does your existing insurance policy adequately protect your
- How up-to-date are the values stated in your current appraisal? It
is suggested that appraisals are reviewed every three years to keep-up
changes in valuation as a result of the fluctuating art market.
Don't confuse original purchase price with current values as the market
for art objects can change drastically over time.
- Does your
current appraisal provide a detailed description of your objects?
- Does your appraisal provide substantiation of value? This is
especially important if objects have a high valuation, in which case a
floater policy for your art objects could provide maximum security in
case of loss or damage.
Before contacting us, review your individual coverage needs with your insurance agent or broker.
- Organize all documentation pertaining to art objects: sales receipts,
information about artists, and provenance (history of ownership)
- Prepare a list of the items to be appraised including: name of
artist, title of work, date, medium, and size.
- Link Here
to an interesting article ( 4/2013) in the WSJ on insuring your art
We are here to
help you with your insurance appraisal needs:
- Client confidentiality is important; we respect the needs and
privacy of our clients.
- Our appraisals are done in a timely fashion, and our fee schedule is
based on competitive hourly rates in the field.