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The Art of Appraisals: Understanding their Vital Role in Insurance

Art Appraisal Resources

Whether you're a collector, an art enthusiast, or an artist, knowing the worth of your artworks is crucial. In this post we explore art appraisals' critical role in the context of insurance. Some insurance policies even require these updates every few years.

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How To Determine If You Need An Art Appraisal

Art Appraisal Resources

You should check with your insurance provider to see what is and is not covered by your homeowners or rental insurance policy. Each insurance carrier has a different policy and requirements, so it is always a good idea to check with them first. It is estimated that 50% of the art in the market is fake.

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Why do you need to have extra insurance coverage for fine art & jewelry?

International Society of Appraisers

One question you should ask yourself is “am I properly insured if something catastrophic happens?” They consider factors such as an artist's reputation, rarity of the piece, quality of materials, provenance (history of ownership), and market trends. Their expertise ensures that the valuation is accurate.

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ASA Newsroom - Gems & Jewelry - Untitled Article

ASA Newsroom - Gems & Jewelry

Insurance industry terminology such as risk, premium, loss, deductibles, coverage limits, and perils are some of the fundamental concepts appraisers must grasp. Different property insurance policies have unique features and limitations. The Claims Function People buy insurance policies for protection against financial loss.

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Insuring and Valuation Updates in more Dynamic Markets

ValuePros Appraisal Services

The specific event can send ripples through the entire genre and certainly impact the value of other works by that specific artist, in this case positively. Conversely, a low auction sale can impact a genre and other works by the artist. While rates vary by insurer, on average you’ll spend 50 cents per $100 of coverage.

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What Kind of Appraisal?

Drishti LLC Appraisers

For insurance purposes, the appraisal report is written for replacement value. For one-of-a-kind artworks, the basis for comparables is usually other works by the same artist, or artwork of similar renown, age, materials and genre. It is not used for forced sale or bankruptcy situations.

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How to Find and Choose and Antiques Appraiser Near You

Penrose Appraisals

Careful inspection of the item to note any flaws, identify makers or artists' marks, evaluate wear and tear, and determine materials - all with an eye toward valuation. Reasons to Seek and Antique Appraisal There are various reasons that someone might need or want an appraisal: Insurance coverage. Examination.