appraisals, valuation, and insurance

Appraisals

There is a world of difference between an appraisal and valuation. While there is no license for personal property appraisers they should have taken the Uniform Standards in Professional Appraisal Practice (USPAP) course within the past 24 months. USPAP is the guidelines set for appraisers by The Appraisal Foundation.

An art appraisal is an estimate of an artwork's value that can be useful for a number of reasons, including: 

• Estate planning:

• Gifts and donations. For art donation deductions of more than $5,000, a taxpayer must obtain a qualified appraisal of the artwork and complete Form 8283—Noncash Charitable Contribution—signed by both a qualified appraiser and the charity.

• Inheritance taxes, which are based on the size of the estate.

• Insurance:

An appraiser is a trained specialist who evaluates a piece of art and provides a written statement of its value. The do so by using market research to determine the value of an artwork, consulting auction records, private sales records, and more to find comparable objects. When determining the value of an artwork, an appraiser will consider numerous factors such as artist, market demand, condition, provenance (or history of ownership), and exhibitions.

linn press can recommend qualified subject matter specialists with whom we have built professional relationships. In some situations, we collaborate with an appraiser because of our access to a network of galleries.

Valuations

linn press can also provide valuations for insurance purposes also consulting auction records and private sales records.

Insurance

Fine art insurance is expensive. Art and collectibles may not always be covered through your homeowners policy for their full value. Some insurers may have a sub-limit that applies in the event of a loss, which means your insurer will only cover certain items up to a specified amount. To insure art and collectibles for their full value, some insurers will allow you to add these items as a separate endorsement or "rider" to your homeowners, renters, condo, or manufactured home policy. Your insurer may require you to provide a photo or detailed description of the item, and possibly an appraisal.

Many insurers establish a valuation thresholds that necessitate fine arts policies. Typically, collection thresholds begin at USD $500.000. linn press can recommend several expert insurance providers.