Art Appraisals Overview:For a client with a significant investment in art, it may be advisable to have periodic professional appraisals of its value. For works whose value is changing rapidly, these appraisals should be updated on a regular basis. This is especially important if the client has art insurance, to keep the policy value up to date.
Art Appraisal Basics: Be wary of appraisals from art dealers. They have a conflict of interest, since they would like to buy at artificially low prices in order to resell at a profit.
An appraisal from an auction house also may be suspect. They may overvalue a work to induce the owner to put it up for auction with them.
When insuring a collection, the bigger, more reputable insurers can help find an appraiser, whose opinion should be the basis for the policy value. This appraiser should be qualified and independent. Expect the appraiser to be a member of a professional association such as the Appraisers Association of America.
If the insurance company insists on a given appraiser whose independence is in question, such as an employee of the insurer, consider hiring another appraiser for a second opinion. If the collection is valuable enough, the second opinion will offer added peace of mind.
