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 contemporary 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. An appraisal may be needed in the claims process to determine the appropriate percentage of loss in value (LIV). These appraisals may assess the success of completed restoration with analysis given as to how a market would be affected by a work having sustained damage and undergone restoration. Appraisals of projected LIV can also be given, prior to restoration.

Call to find out more about DSFA insurance appraisals.