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As a personal property appraiser, my role encompasses tangible property including fineart, antiques, furniture, and collectibles. Reasons of valuations for tangible property can include estate and probate purposes, equitable distribution, insurance coverage, charitable donations, dissolution of marriage, and bankruptcy.
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 final level of value to be discussed is Liquidation Value. Liquidation Value is often used in bankruptcy contexts.
Is it the orderly liquidation market, retail market, retail replacement market? In general, pre-owned diamond jewelry is most commonly sold to the public on the orderly liquidation market; however, the marketplace is going to depend on the specific property. Chapter 11 in the Core Course Manual discusses insurance coverage and claims.
Marshall spoke about some of the challenges unique to housing a museum in an historic building not purpose-built for that use, including security of the art, adequate storage facilities and other challenges that arose while transforming a former orphanage into a modern museum. Such coverage is much more comprehensive protection against loss.
A current appraisal will help ensure that your insurance coverage is appropriate, and that you’re not paying high premiums for something that has actually depreciated in value over time. For example, if you have a rare piece of artwork or antique silver, look for an appraiser who has expertise in appraising both antiques and fineart.
135,000 is a nifty return on investment for a four-dollar purchase, which is what caused the extensive coverage of the sale in the general news media. Before you liquidate your retirement fund and put everything into paintings by Bob Ross (or any other artist), give me a call and let’s talk. Nostalgia, however, goes only so far.
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