need an insurance appraisal update?

​A client recently called us to update an insurance appraisal for original Andy Warhol prints. A previous appraisal from two years ago was available, however, the insurance company insisted on a new appraisal. You might wonder why insurance companies, such as Pure Insurance (https://www.pureinsurance.com) or Huntington T. Block (https://www.huntingtontblock.com), insist on having an updated appraisal for artwork. There are several reasons that are particularly important to consider.
 
One of the most important reasons to update an appraisal for artwork is to provide documentation of current condition. Condition of an artwork is a significant factor in determining value. Events such as flooding or fire can damage artwork and reduce the value, even if the artwork was not directly impacted. Fires cause smoke damage, and flooding can increase exposure to humidity and molds. A well-trained art appraiser is able to identify and document damage, or confirm that the artwork is not damaged. Furthermore, a fine art appraiser will document details, such as a blindmark, that may be overlooked by a general appraiser.
 
Secondly, an updated appraisal will make sure your collection is insured at an appropriate level. Similar to investment markets, the market value of artwork fluctuates over time. For collectors, underinsured artwork can be a significant risk. For example, if you bought an original artwork 5 years ago for $10,000, and that artwork is now worth $100,000, you need an updated insurance appraisal to ensure adequate coverage amount for an insurance policy. Conversely, if the value of your artwork has gone down, an appraisal will result in lower premiums for adequate insurance coverage.
 
Other significant considerations to take into account for insurance are remodels to the home where artwork is kept, or relocation of artwork. If you are planning a remodel, protect your artwork from any potential damage. Protecting your artwork is especially important if the remodel includes structural changes. Sometimes artwork can be wrapped to protect it during a remodel. However, sometimes the best protection is to remove the artwork for the duration of construction. Whether you are wrapping artwork or moving it, be sure to have professional art handlers and packagers wrap or move the artwork to prevent damage during the remodel or moving process. 

​If you have any questions, please contact us at [email protected].