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As an avid collector and wearer of vintage couture, I’ve personally experienced firsthand the magnetism of these timeless treasures—and as an appraiser, I’ve seen how important it is to accurately understand their value for estatetax, insurance coverage, and equitable distribution.
Value matters and an art appraisal completed by a qualified art appraiser can save you substantial money by not selling too low, insuring too low, or paying too much in estatetax or equitable distribution. Many insurance companies require a professional art appraisal to determine the appropriate coverage and premiums.
While it might be possible to scour the auction market for years searching for an offering similar to the lost item and then obtain that item at a much lower price, this is not the function of insurance coverage. The next level is Fair Market Value.
Understanding the nuances of property insurance coverage and the claims function is essential for appraisers to effectively carry out their duties. Insurance industry terminology such as risk, premium, loss, deductibles, coverage limits, and perils are some of the fundamental concepts appraisers must grasp.
The appraisal also provides an estimated replacement value for your jewelry, which is the value insurance companies use when providing you with coverage. To get an accurate value for estate planning or tax purposes Fair Market Value is used for estate purpose appraisals. What exactly is Fair Market Value?
Today, with over 180 members, the ADAA has expanded its appraisal services from donation to also include estatetax, gift tax, and insurance. For instance: Replacement Cost Value is used when a collector needs an appraisal for insurance coverage.
Common Reasons to Get an Appraisal Insurance Coverage If you own valuable artwork, having an appraisal ensures you have the right insurance coverage in case of theft, damage, or loss. Many insurance companies require a professional valuation to determine an appropriate coverage amount.
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