While you may not want to think about a prized possession being stolen, damaged or lost, in reality these things happen all too often. Whether you own fine art, jewellery, antiques or even classic cars, having a current appraisal is an important part of owning valuable items.
As a statement of an item’s value, an appraisal provides the necessary documentation to substantiate the existence, condition, and value of your collection. It can also help you make sure your valuable items are insured to their current replacement value, which provides protection against market fluctuations and value loss.
You may be surprised to learn that the value of an item can be measured in more than one way. When you commission an appraisal for your art and collectibles, the valuation methodology to be used will depend on the purpose of the appraisal. Two of the most common values for art and collectibles are Fair Market Value (FMV) and Replacement Value (RV).
A comprehensive appraisal report includes:
In addition, the appraisal document should be printed, not handwritten, and should always be signed by the appraiser.
A qualified appraiser has a formal education in appraisal theory, methodology, principles, and ethics. He or she should also have specialized expertise in the material being appraised. For example, an appraiser who specializes in contemporary art may not be the best choice to appraise an Impressionist painting.
If you would like to find out more on how you can protect your prized collections and other valuable possessions, leave your contact details via the 'Contact Me' button below and our representatives will get in touch with you.
1 IRS publication 561
2 Appraisers Association of America, Definitions of Value, 2019
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