​The Value of an insurance appraisal

Whether you’re wanting to protect the value of an artwork or in the process of estate planning, an insurance appraisal can help you in both situations. Too often people look into insurance after some sort of damage has occurred, but the best time to have an appraisal is before an incident. In addition to providing a replacement value, an appraisal proves the object exists, documents the current condition, and provides identification with a detailed description.
 
THINKING AHEAD
While we don’t usually anticipate that an artwork will be damaged, it is also impossible to fully prevent damage from water, fire or even in transit during a move. Given that most original artwork is not reproduced, thorough documentation has multiple benefits. First, it provides  record of the artwork, and reference for the condition. If damage occurs that is repairable, an appraisal might be the best or only record available to restore a piece to its pre-damage state. In the event that a piece is damaged beyond repair, an appraisal will provide the information for your insurance company to process the claim. 
 
Having full documentation of your valuables prior to damage will make it much easier to file a loss or damage claim and be reimbursed for the full value. Furthermore, once you have an appraisal, it should be reviewed every 3-5 years to account for changes in your collection, note any changes in condition and be adjusted for changes in the market value. Similar to other investments you may make, the art market fluctuates and tracking the current value every few years can help you decide if you may want to sell or shift the type of pieces in your collection.
 
ESTATE PLANNING
Similar to having an insurance appraisal before an incident, the best time to do estate planning is long before you need it. And the good news is that an insurance appraisal is also the basis for estate planning. So, whether you are building a collection or making changes in a collection, an insurance appraisal will help you steward your investment for the long-term.
 
Please contact us with any appraisal questions at [email protected].