The cost of your art is much more than simply its price tag.

You've done your enquiry and as a collector, you understand that there are things you should be doing to protect and intendance for your artworks. The first steps to protecting your collection are getting an accurate appraisal and obtaining fine art insurance coverage. And, y'all may know that those steps are not ever straightforward, for instance, with art insurance you must consider the right type and amount for your drove.

Hither are few helpful topics to consider when considering appraisals and fine art insurance.

Having your artwork or collection properly appraised is the first step to protecting information technology. Hiring a qualified appraiser and maintaining updated values are two important parts of the appraisal procedure. And, appraisals may not be a ane-off process. Some artwork, every bit explained beneath, necessitates frequent appraisals.

When should you get an appraisal?

An appraisement should be done before you make any changes or decisions about your collection. And, depending on what is in your drove, it's also beneficial to refresh those appraisals every so often. For case, the appraisement of artwork in a fast-paced market, like contemporary art, could be revisited annually.

"I think collectors demand to know what they have and so they can program accordingly, and the best way to do that is to accept their collection appraised.  If it's a reproduction impress, and then they might not need to worry about it too much. If information technology turns out to be an authentic painting, then there will be questions of should I sell it, should I insure it, should I keep information technology, should I donate information technology, etc., and an appraisement tin can assist the collectors with making those decisions."

-Meredith Meuwly, Vice President, Heritage Auctions Appraisement Services

Here are some milestones for which you could consider a new appraisal:

  • Insurance purposes

  • Damage or loss

  • Estate tax liability or equitable distribution

  • Estate planning and gifting

  • Divorce

  • Non-greenbacks charitable donation

  • Liquidation of part or the entirety of a collection

  • Defalcation proceeding

  • Collateral for financing

Once yous've conducted an appraisement, you tin can hands upload and track your appraisal reports in your Artwork Archive business relationship.

What should a collector look for in an appraiser?

Unlike real estate appraisers, personal property appraisers are not licensed by the land or federal government. Anyone can call themselves an appraiser, so a collector should exist careful when selecting an appraiser for their collection.

The Appraisers Clan of America tells usa that "a qualified appraiser specializes in the area represented by your collection; is referred past a trusted source  such as a colleague, museum professional person, client, local sale house specialist, attorney or trust officer; is USPAP compliant."

Wait, what is USPAP?

In the United States, the Uniform Standards of Professional person Appraisal Do (USPAP) is considered to be the ethical and operation standards for the appraisal profession. This annually updated document says that an appraisal report should  "conspicuously and accurately set forth the appraisal in a fashion that will non be misleading" and "incorporate sufficient information to enable the intended users of the appraisement to understand the report properly." (USPAP Standards Rule eight-1 a-b). This translates to a list of things your appraisement report should have.

What kind of information should be included in an appraisal written report?

The Uniform Standards of Professional Appraisal Do lays out the bones information that should be included in your appraisal written report. You tin notice the full list on their site, but here are a few key components:

  • Client & Appraiser Data

  • Signed and dated certification

  • Scope of work

  • Purpose of the appraisal

  • Type of report: self-contained, summary or restricted

  • Approach to value: market data comparison approach, price approach or income approach

  • Blazon of valuation used: retail replacement, marketable greenbacks valuation, etc.

  • Market place in which valuation is applied

  • Relevant dates: effective (valuation) engagement and (effect) date of the report; and too as needed, appointment of inspection, date of donation, date of death, etc.

  • Description of appraised objects

  • Additional clarification: artist, title, provenance, exhibition and publication history, glossary, etc. You can keep track of this key data with Artwork Archive.

  • Photographs are required for any object valued at $20,000 or more than for the IRS: donation, estate or gift tax

Now, some points to consider when insuring your collection.

What data should a collector accept for insuring a collection?

The appraisal study will be invaluable for assessing your insurance needs for your collection, but it's far from the simply affair. If you proceed these documents in your Artwork Archive account, y'all'll have everything organized and hands accessible when yous're working with your insurance banker—saving you and your insurance broker plenty of time. Here are other documents to track:

  • Proof of buying

  • Bill of sale

  • Provenance

  • Replacement estimate

  • Photographs

  • Appraisal

Where should you find insurance for an fine art collection?

While a homeowners policy covers some personal property and you lot can get additional coverage through your policy for high-value avails, like fine fine art, collectibles, antiques, or jewelry, it's best to discover an insurer that specializes in fine art. Don't let price exist your determining cistron when choosing a policy; a low premium might not carry the terms and weather to meet your needs. There's zilch worse than needing the insurance when disaster strikes and finding that you're non covered for the situation.

What is the difference betwixt replacement and restoration coverage?

Read the fine print and know your policy inside and out. Replacement insurance covers the price of replacing a slice if it is damaged or stolen while restoration insurance covers the cost to correct the damage. Not all policies include both.

The price of your collection besides goes beyond appraisals and insurance. Here are other factors that you may or may not have considered in your drove budget.