David Shapiro Fine Art

Art appraisals for insurance purposes include:

1) Appraisals for establishing and/or updating values for insurance schedules

Appraisals are frequently required by insurance companies for establishing premiums. These appraisals assess Retail Replacement Value (RRV), which is “a property’s highest value, usually for insurance purposes, that is defined as the highest amount in terms of U.S. dollars that would be required to replace the property with another of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant market.” (See: Appraising Art: The Definitive Guide to Appraising the Fine and Decorative Art, New York, Appraisers Association of America, 2013, p. 438). RRV is the highest type of value.

For collectors of work in sectors with quickly changing values, such as postwar, contemporary, and emerging art, it is generally recommended that insurance schedules are reviewed regularly for reappraisal.

2) Appraisals for assessing loss in value

Art may suffer damage from a variety of causes, including errors in packing, shipping, or storage, as well as flood, fire, and vandalism. Whether or not a work of art has been scheduled on an insurance policy, an appraisal may be needed in the claims process to determine the appropriate amount of loss in value.

Call to find out more about DSFA insurance appraisals.