Retail Replacement Value

Insurance appraisals

An insurance appraisal establishes what it would cost to replace an item with one of like kind and quality, in the appropriate market, within a reasonable time. It is the figure your carrier requires to schedule the item on a fine arts policy or valuable articles rider.

When you need one

Five situations that call for it

You are scheduling art, silver, jewelry, furniture or a collection on a policy
Your carrier or broker has asked for supporting documentation
Your last appraisal is more than five years old
You have recently inherited or acquired something significant
You are moving, lending to an exhibition or shipping abroad

What you get

A report formatted for your carrier

A bound and digital report identifying and describing each item, with measurements, condition, markings, provenance where relevant, professional photography, the market data supporting each value, and a signed certification.

The report is formatted for direct submission to your carrier or broker; if your insurer requires a particular schedule format, send it and the report will match it. The practice works regularly with brokers across Rochester, Monroe County and the Finger Lakes, and with the national fine art underwriters they place through.

Updating

Three years or five

Most carriers want appraisals refreshed every three to five years. In fast-moving categories such as post-war and contemporary art, mid-century design and wristwatches, three years is already stale; in flat categories, five is adequate.

The practice will tell you which applies to your collection, and re-appraises its own reports within five years at half the original per-item fee, since the descriptive work is already done and only the market research needs refreshing.

Underinsurance is the common failure

The most frequent problem is an old number rather than a wrong one. A collection scheduled at 2015 values and never revisited will be paid out at 2015 values.

Common questions

What is the difference between replacement value and fair market value?

Replacement value is the cost of buying a comparable item at retail today, and it is generally the higher figure. Fair market value is what the item would fetch between a willing buyer and a willing seller. Insurance uses replacement value; the IRS uses fair market value. An insurance figure on an estate return overstates the estate, sometimes substantially.

Does a homeowner’s policy already cover art?

Usually only to a low sub-limit. Fine art, silver, jewelry and collectibles are commonly capped well below their value unless separately scheduled, and scheduling normally requires an appraisal. Thresholds vary by carrier; ask your broker.

Does the practice need to see the works in person?

For an insurance appraisal, yes. Condition materially affects value and cannot be assessed reliably from photographs. Inspections take place at the property.

How many pieces can be covered in a day?

On site, roughly eight to twelve objects an hour are inspected and photographed, depending on complexity. Each group of ten then takes about three hours of research and writing.

Rate

$350 single item

Priced by the item: $125 each for items two through ten, $75 each from eleven; updates of an existing report within five years at half the per-item fee. Objects raising an attribution or provenance question are quoted in advance at $225 an hour. No project minimum. Fees are never based on the value of the property. Full fee schedule

Request a quote How it works