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, art investors can obtain an appropriate insurance policy. In this post, we will cover how to get an art appraisal for insurance purposes.
Prepare Your Artwork Documents
To get started, 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.
Find USPAP-Compliant Appraisers
Secondly, 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. 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.
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.
Take Out an Appropriate Policy
Once you have conducted your art insurance appraisal, 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.