Insurance Appraisals

E. Linda Poras, Fine Arts Appraiser – Nationwide

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


New England  508.577.7377  ¦  Miami to Palm Beach   786.581.7260 ¦  Email


New England  508.577.7377  ¦  Miami to Palm Beach   786.581.7260 ¦  Email