Insurance Appraisals | Poras Fine Arts Appraiser

E. Linda Poras, Fine Arts Appraiser – Nationwide

FINE ART INSURANCE COVERAGE APPRAISAL
An insurance coverage appraisal is used in conjunction 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:

1. Document ownership of the property.
2. Clearly estimate and justify the replacement value of the property.
3. Support conclusions with facts based on market research and accepted principles of valuation as outlined by the Appraisers Association of America.
4. 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. Appraisals, which suggest overvaluation of objects, are subject to close scrutiny in claims cases. Insurance companies are aware of professional appraisal standards.

Key issues for insurance appraisal consumers to consider:

Does your existing insurance policy adequately protect your collection?
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 with 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, previous appraisals, information about artists, and provenance (history of ownership) of objects.
Prepare a list of the items to be appraised including: name of artist, title of work, date, medium, and size.
Link Here to a related article ( 4/2013) in the WSJ on insuring your art works.

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. All appraisals are written according to USPAP standards and the code of ethics of the AAA.

Damage or Loss Appraisals:

Here is an interesting article written about the issues involved in this type of an Appraisal

FAQ’s

What exactly does an art appraiser do?

An art appraiser provides a formal, independent, and objective evaluation of the value of your artwork or collectibles. This involves examining the piece, researching its provenance (history), analyzing the current market, and producing a legal document detailing its worth.

What is the difference between an appraisal and an authentication?

This is a common point of confusion!

* **Authentication** proves *what* an artwork is (verifying the artist, era, and legitimacy).

* **Appraisal** determines *what it is worth* in today’s market.

While we research authenticity as part of our process, we do not issue official certificates of authenticity. If your piece requires expert authentication, we can guide you to the right

How do you determine the value of a piece of art?

We look at a combination of factors, including:

* **Artist & Significance:** The artist’s market demand and the piece’s importance within their career.

* **Condition:** Any damage, restoration, or wear.

* **Provenance & Exhibition History:** Documented ownership and inclusion in gallery or museum shows.

* **Market Analysis:** Recent sales data for comparable works at auction and retail galleries.

Do I need to bring the artwork to you?

No, we will send a documentarian to you. We also can often conduct appraisals remotely using high-resolution photographs, detailed measurements, and documentation.

> **Tip:** If you are submitting photos, please include clear shots of the front, back, frame, and close-ups of any signatures, labels, or damaged areas.

Why would I need a formal appraisal?

There are several official situations where a certified appraisal is required or highly recommended:

* **Insurance:** To ensure your collection is properly covered against loss or damage.

* **Estate Planning & Probate:** For tax purposes, asset distribution, or stepping up the basis of an estate.

* **Charitable Donations:** The IRS requires a formal appraisal for non-cash charitable contributions valued over $5,000.

* **Equitable Distribution:** For divorces or business dissolutions.

Are your appraisals USPAP compliant?

Yes. All of our appraisal reports are written in strict accordance with the **Uniform Standards of Professional Appraisal Practice (USPAP)** and the code of ethics of major professional appraisal associations. This ensures our reports are legally binding and accepted by the IRS, courts, and insurance companies.

How much does an appraisal cost?

Fees are based on an **hourly rate or a flat per-item fee**, depending on the scope of the project and the amount of research required.

*Crucial Note:* We **never** charge a fee based on a percentage of the artwork’s value. Charging a percentage is a strict violation of professional ethics, as it creates a conflict of interest.

How long does the process take?

A standard appraisal typically takes **2 to 3 weeks** from the initial consultation and inspection to the delivery of the final report. Complex collections or pieces requiring extensive historical research may take longer. If you have an urgent deadline (such as a tax filing date), please let us know upfront.

What should I prepare for our first meeting?

To make the process as efficient as possible, please gather any paperwork you have related to the art, including:

* Original sales receipts or invoices

* Previous appraisals

* Certificates of authenticity

* Exhibition catalogs or family records regarding ownership history

How are you ranked?

We are one of the top art appraisers in the greater Boston and Miami markets with over 15 years of experience in the field.

Who seeks your services for art valuations ?

1.Top estate lawyers in the Boston and Miami area.

2.Insurance agents seek our services for difficult art insurance claims.

3.High net worth individuals who need valuations for their collection.

Are you a member of an organization?

Yes, I am a long time member of the AAA,

Appraiser’s Association of America

and

A member of the New England Appraiser’s Group.

and

On the collection committee of the Danforth Museum.

New England 508.577.7377 ¦ Miami to Palm Beach 786.581.7260 ¦ Email linda@art-appraiser.com