Insurance Coverage

Appraisals are required by insurance carriers in order to protect your property from loss by fire, theft, damage, etc. This facilitates claim settlements by providing detailed inventories and itemized replacement costs. A professional appraisal prior to the loss is essential for protecting the value of your property.  In the event of a loss, proof of ownership as well as a claimed value must be provided by the owner to the company.  Most insurance companies require updated appraisals every 3 to 5 years.

Charitable Contribution or Donation

The Internal Revenue Service requires that a donor obtain a qualified, outside appraisal for any donation worth more than $5,000.  IRS publication 561 describes the charitable donation process, including a lengthy description of "Fair Market Value."  Strict IRS procedures make it essential that donors seek assistance from a knowledgeable, qualified appraiser for tax purposes.

Estate Tax or Planning

State tax regulations require upon death that property in the estate be inventoried and appraised to establish a basis for determining estate taxes.  This appraisal also becomes useful when the estate must be divided equally among heirs or when donations from the estate to charitable organizations are made.  Additionally, an appraisal can assist financial planners and related professionals in establishing a client’s net worth, and as a basis for judicious estate planning.

Equitable Distribution

In the trying times of divorce, estate or probate cases, a qualified appraiser is indispensable for an equitable division of assets. Some benefits of an appraisal are:  negotiations are usually quicker and simpler, asset values become irrefutable; as a result, this can reduce conflict, attorney costs and litigation time.

Damage/Loss Claims

Required by an insurance provider, a Damage Appraisal determines replacement costs for total or partial damage to property.

Resale

Though not a formal written appraisal, this is a budget-conscious option for those looking to resell their current collection or individual work of art in the wholesale market. A sale appraisal is not USPAP-compliant and estimates the appropriate market valuation for property used by wholesalers selling to the trade as well as dealers buying for resale to the public.