Appraisals<meta name="description" content="An appraisal is an educated guess given by an expert. The person giving the appraisal should possess expert knowledge about the object being appraised. Expert knowledge comes from years of study and work.">

Appraisal

An appraisal is an educated guess given by an expert. The person giving the appraisal should possess expert knowledge about the object being appraised. Expert knowledge comes from years of study and work. An appraisal is an opinion. The insurer and the owner of the object being appraised depend on the opinion of the expert should damage or theft occur.

The appraiser will give a price range that could be expected if the object was sold. It is very difficult for anyone to predict what someone else will pay for an object. Knowledge of the overall marketability for similar objects is required. Knowing what other similar things have brought recently in sales is the foundation of establishing value. Knowing the scarcity of the object is fundamental in setting value. Knowing how many collectors are looking for similar items is a big part of knowing the market well. It is a process of learning not only about the origins of a piece or about styles or periods of art or schools of art but also a bit about human nature and business.

The term that appraisers and insurance companies use for the price an object could be expected to sell for in a gallery, a specialty shop or an auction house sale is called the “market” value. They are trying to determine what it would bring at “market”. Market value is quite different from replacement value. A unique item really can not be replaced… after all it is one-of-a-kind… it has no such thing as replacement value.

The market value is determined by examining the art object or antique very carefully. The appraisal must be in writing and must give a complete description of the object. There is an accepted procedure for making a description of an art object. Photographs must be taken. The finished product is a set of condition reports, origin reports, photos and supporting materials that can be given to the insurance company as evidence of the true value.

Overstating the value of an object could result in a fraudulent act being committed. Intentionally over-insuring an object is referred to as a “moral hazard” in the insurance business. Insurance is meant to restore the owner to the original condition before the loss… this is called to “indemnify”. Insurance is not supposed to provide a profit.

The owner and the insurance company can choose to agree on a value at or below the market value appraisal. Both parties in the insurance contract agree that the limit of the policy is the most that will be paid. There are some policies that can keep pace with inflation or even keep pace with changes in market value. The policy is crafted to meet the needs of the owner by the agent and the underwriter. There are numerous variables and choices to be made in crafting a policy.



	Appraisal An appraisal is an educated guess given by an expert. The person giving the appraisal should possess expert knowledge about the object being appraised. Expert knowledge comes from years of study and work. An appraisal is an opinion. The insurer and the owner of the object being appraised depend on the opinion of the expert should damage or theft occur. The appraiser will give a price range that could be expected if the object was sold. It is very difficult for anyone to predict what someone else will pay for an object. Knowledge of the overall marketability for similar objects is required. Knowing what other similar things have brought recently in sales is the foundation of establishing value. Knowing the scarcity of the object is fundamental in setting value. Knowing how many collectors are looking for similar items is a big part of knowing the market well. It is a process of learning not only about the origins of a piece or about styles or periods of art or schools of art but also a bit about human nature and business. The term that appraisers and insurance companies use for the price an object could be expected to sell for in a gallery, a specialty shop or an auction house sale is called the “market” value. They are trying to determine what it would bring at “market”. Market value is quite different from replacement value. A unique item really can not be replaced… after all it is one-of-a-kind… it has no such thing as replacement value. The market value is determined by examining the art object or antique very carefully. The appraisal must be in writing and must give a complete description of the object. There is an accepted procedure for making a description of an art object. Photographs must be taken. The finished product is a set of condition reports, origin reports, photos and supporting materials that can be given to the insurance company as evidence of the true value. Overstating the value of an object could result in a fraudulent act being committed. Intentionally over-insuring an object is referred to as a “moral hazard” in the insurance business. Insurance is meant to restore the owner to the original condition before the loss… this is called to “indemnify”. Insurance is not supposed to provide a profit. The owner and the insurance company can choose to agree on a value at or below the market value appraisal. Both parties in the insurance contract agree that the limit of the policy is the most that will be paid. There are some policies that can keep pace with inflation or even keep pace with changes in market value. The policy is crafted to meet the needs of the owner by the agent and the underwriter. There are numerous variables and choices to be made in crafting a policy.