Art appraisals for insurance purposes require several steps. In order to insure a collection, policy providers must establish the artwork value. Typically, art value is based on market evidence such as previous sales, auction prices and current popularity. Regardless of personal preferences, certified appraisers evaluate the artwork value based on item age, overall condition, artist reputation and market demand. Based on this value, social impact investors and art investors can obtain an appropriate insurance policy. In this post, we will cover how to get an art appraisal for insurance purposes.
There are several important steps to get a fine art appraisal for insurance purposes. According to recent data, the global art market is worth over $65 billion. In this lucrative industry, art industry experts need to know how to navigate their purchase, donation, and sale decisions to increase their profit. As an art investor, learn the proper steps to get an appraisal for insurance. This way, you can determine the true value of your artwork, verify its authenticity, and access expert purchasing advice. Read on to learn about how to get a fine art appraisal for insurance purposes.
Know When To Get An Appraisal
First, know when to get a fine art appraisal for insurance purposes. Many art investors get an appraisal to decide how much insurance coverage to buy. For example, you may want a policy that protects your art assets from damage caused by natural disasters or accidents. On the other hand, you may also want your policy to cover your assets from theft. Some investors also get an appraisal for estate settlements, donations, or equitable distribution through a divorce. Using this appraisal, you can gain insight on the asset’s total insurable value. Then, your insurer or exponential organizations can compensate you accordingly. Definitely, know when to get a fine art appraisal for insurance purposes before purchasing a policy.
Consider Different Types Of Appraisals
Next, consider different types of fine art appraisals for insurance purposes. For example, an art appraisal for insurance value can tell you the current market replacement value in a retail gallery. Since this takes retail prices into account, this is usually one of the highest evaluations. Alternatively, you can get an appraisal for resale value if you are looking to sell a piece. Here, the appraiser determines the artwork’s wholesale value from auctions and sales records to inform your selling price. On the other hand, get a donation appraisal if you want to gift your art to a museum or nonprofit organization. Indeed, you can use this value for tax deductions. Absolutely, consider different types of fine art appraisals for insurance to get the value you need.
Prepare Your Artwork Documents
Gather the necessary documents before getting your artwork appraisal. A high-value artwork will come with documentation on whether it was bought, inherited, or received as a gift. Have the transaction documentation ready so your art appraiser can authenticate the piece faster. Of course, this presents a great use case for electronic document retention software. Depending on the artwork, documentation can include receipts to previous art appraisals, provenance records, and restoration records. Additionally, include documentation of exhibits, previous sales history, and noteworthy media publications featuring the artwork. Surely, preparing for an insurance appraisal will assist you throughout the entire insurance appraisal process.
Evaluate Art Appraisal Costs
In addition, you should evaluate art appraisal costs for insurance before hiring an appraiser. Typically, it costs between $150 and $200 per hour to have art appraised. Since each asset can take a different amount of time to appraise, most appraisers charge by the hour. Of course, some appraisers charge per piece or report. Association membership, experience, and expertise can also impact this rate. Ideally, you should obtain a written quote with fees and expected appraisal documents before work begins. Contact at least three different appraisers to confirm pricing. In short, evaluate costs before you get your fine art appraisal for insurance.
Find USPAP-Compliant Appraisers
Additionally, find a local USPAP appraiser in your area to get an artwork appraisal. To find someone local, check online directories that list USPAP-compliant appraisers. These platforms highlight each appraisers credentials, location and specialties. Of course, you can also use cold calling tips to contact appraisers directly. If possible, contact an appraiser who has experience in your industry. Additionally, verify that they are certified and they have maintained active status. Typically USPAP compliant means the appraiser has completed the initial 15-hour course as well as an updated 7 hour course every two years. Based on their credentials, reach out to multiple members to get an art appraisal on your property.
Verify Appraisal Credibility
Once you get your fine art appraisal for insurance value, verify its credibility. Credible appraisal reports must identify and describe your assets with photographs. In addition, the appraisal report should include the type of value such as fair market or replacement. It should also detail the effective date and the object’s relevant characteristics. For example, look for the title of the piece, artist name, and medium. Additionally, make sure your appraisal includes the dimensions, dating of the object, and the condition of the artwork. To support the value, your appraiser should include cited data and analysis in a glossary. Also, look for a certification document stating the appraiser is not biased. Undoubtedly, verify art appraisal for insurance credibility once you receive the document.
Qualify Your Local Artwork Appraiser
When finding art appraisers for insurance purposes, compare them based on key qualifiers. The best artwork appraisal experts have proven experience, reports and references. Ask the appraiser to provide any museums, galleries, universities or insurance companies they are affiliated with. Since they are entities unaffiliated with your business, look at independent contractor insurance. Next, check their previous artwork appraisal reports to understand their previous analysis, comparisons and conclusions. The previous reports show how much detail goes into the artwork appraisal process. Furthermore, contact their references to verify their relationships in the industry. These factors will qualify the best appraiser for your artwork. Certainly, take the time to compare appraisers prior to getting an art appraisal for insurance.
Get Your Artwork Appraisal
After selecting your expert, get your artwork appraised for insurance value. To prepare for your appraisal, have your documentation ready and position the art piece in a space with good lighting. Additionally, ensure there is enough room for your art expert to examine the painting. Notably, appraisals can take time since art experts have many factors to record. Thus, better work environments are critical to make the appraiser’s job easier, faster, and more accurate. Review your consultant’s findings after they complete the appraisal. Then, record the art’s replacement value for your insurance claim. Certainly, prepare your appraisal documentation and allow the professional to do their job for a positive outcome.
Obtain Regular Appraisal And Condition Reports
Furthermore, you should get regular art appraisals for insurance purposes. Ideally, you should get an updated appraisal for your art collection every five years. In addition, get a condition report every 7 to 10 years. This is an update on your collection’s cleanliness. Using these reports, you can determine when your art needs to be restored. Indeed, restoration can reveal different artists’ techniques and color palettes. Plus, it can open doors to understanding your collection’s history and creators. Since the condition greatly impacts the value, regular condition reports are key to accurate appraisals. Certainly, get regular appraisal and condition reports for your insurance art appraisal.
Take Out An Appropriate Policy
In addition, you need to report the value and take out an appropriate policy. It is essential to find policies that cover the value of your painting. Fortunately, there are many small business commercial insurance policies that can save costs. Ideally, you should compare each policy’s benefits and exclusions to find the one that is best fit for you. In addition, you should pick a policy that covers restorations and replacements. Typically, the best policies protect against fire, natural disaster, and theft as well. You can also look for policies that protect against accidents. Importantly, leaving your art uncovered in one incident can potentially cost you millions of dollars. Therefore, it is essential to find an expansive insurance policy that is appropriate for your artwork appraisal.
Artwork appraisals for insurance purposes are highly acquirable by following this process. Prepare for an appraisal by gathering the documents of ownership. Find a USPAP-certified appraiser to protect yourself from a hyper-inflated estimates. Then, narrow your search to certified consultants with a strong reputation and experience in your specific artwork. Schedule the appraisal in a safe environment, and receive the replacement price. Finally, research and purchase the best art insurance policy for your collection. Follow these steps to get an artwork appraisal for insurance purposes.
There are several important steps to get a fine art appraisal for insurance purposes. First, you should know when to get an art appraisal to cover your assets. Next, consider different types of appraisals based on the value you need. In addition, evaluate art appraisal costs before hiring an appraiser. Moreover, verify your appraiser’s credibility by assessing the document components. Furthermore, get regular appraisal and condition reports to keep value accurate. Consider these points to learn about how to get a fine art appraisal for insurance purposes.