Insurance Appraisals

Appraisal Reports for Insurance Purposes

An art appraisal report for insurance purposes is a comprehensive document prepared by a qualified appraiser, offering a professional evaluation of an artwork’s retail replacement value. It plays a vital role in accurately insuring valuable artworks, supplying essential documentation to support insurance claims, and giving owners a clear understanding of their collection’s value. We believe that an appraisal report is essential for insuring your valuable art collection for several key reasons:

Establishes Value: An appraisal provides a professional, objective assessment of the artwork’s current market value. This ensures that your insurance coverage reflects the true worth of your collection.

Accurate Coverage: With an up-to-date appraisal, you can purchase an insurance policy that adequately covers your art. This helps avoid being underinsured or overinsured, which can affect your premiums and claims process.

Supports Claims: In the event of loss or damage, an appraisal report serves as evidence to support your claim. It provides the insurer with a documented value, making the claims process smoother and more straightforward.

Market Trends: Appraisals often include insights into market trends and comparable sales, which can help you understand the value dynamics of your collection. This information can be useful for future insurance adjustments.

Re-evaluation Over Time: Art values can fluctuate, so periodic appraisals are recommended. Keeping an updated appraisal ensures your insurance coverage remains adequate as the value of your collection changes.

Insurance Coverage for Fine Art

A personal articles floater (PAF) or inland marine policy is important for insuring a valuable art collection because standard homeowners, renters, and even commercial insurance policies often have limitations and exclusions that can leave your collection under protected. While a standard insurance policy might cover some basic risks, a personal articles floater or inland marine policy provides tailored coverage that protects your valuable art collection against a wider range of potential risks, ensuring your peace of mind.

Personal Article Floater (PAF) is an insurance policy that provides coverage for valuable personal items that may not be fully covered under a standard homeowners or renters insurance policy. These items can include jewelry, fine art, collectibles, musical instruments, and other high-value possessions. The PAF offers more comprehensive protection against risks such as theft, loss, accidental damage, or mysterious disappearance, usually without a deductible. It often covers items worldwide, giving broader coverage than typical home insurance or renters insurance policies.

Inland Marine Policy is a type of insurance originally designed to cover goods transported over land (hence “inland”). It now extends to protect a wide range of movable or specialized property, even if it is not literally being transported. This policy is often used to insure items on commercial insurance policies like construction equipment, fine art, musical instruments, or valuable documents. Inland marine insurance provides coverage for loss, theft, or damage that may occur while the items are in transit, being stored, or in use away from the insured’s primary location.

Why these specialized policies are beneficial:

Coverage Limits: Insurance companies have standard policies that typically have dollar limits on how much they will pay for fine art, jewelry, and collectibles.The amount is usually under $5,000 total per occurrence. A PAF or inland marine policy allows you to insure your collection for its full appraised value, providing more comprehensive coverage.

Specialized Protection: These policies are specifically designed for high-value items like art, jewelry, and collectibles. They often cover risks that standard policies may not, such as accidental damage, mysterious disappearance, or specific types of theft.

Worldwide Coverage: They often provide coverage regardless of location, whether your artwork is at home, in transit, or on loan for an exhibition. This is crucial for collectors who travel with their art or display it in different venues.

No Deductible for Certain Claims: Some policies may waive deductibles for specific types of claims related to art, making it easier to recover losses without significant out-of-pocket expenses.

Protection Against Fluctuating Values: The art market can be volatile, and values can change over time. Both policies can be updated periodically to reflect current appraised values, ensuring adequate coverage.

Our Process

Initial Consultation: We will discuss the collection with you to understand the scope and requirements.

Quote for an Appraisal Report: To provide an accurate quote for our service, we need to know:

  • The intended use of the appraisal (e.g., insurance, sale, tax purposes).
  • The approximate number of pieces in the collection.
  • The categories of the collection (e.g., genre, medium,).
  • Location of the artwork (e.g., in storage, at the residence, in transit).

Documentation: We will gather detailed information about each piece, including provenance, artist, medium, dimensions, and condition.

Market Analysis: We then research current market trends, recent sales of similar works, and other relevant factors to determine the replacement value.

Appraisal Report: A comprehensive report is prepared, detailing the value of each piece and the methodology used to arrive at these values.