Dynamic Art Market Requires Regular Value Updates
Most serious fine art collectors are aware that, for insurance purposes, their scheduled pieces require regular value updates to be compliant with their chosen insurer’s coverage policy. The art market is one of the most dynamic categories of personal property, if not the most. The market – collectors of art – are continuously monitoring auction events to determine a value basis for their next acquisition attempt. A motivated buyer, in a single auction event, can spur an upward value trend of impressive scale. Likewise, a single disappointing auction event can send ripples through the market, shaking the confidence of previously excited enthusiasts.
Insurers understand sometimes rapid fluctuation in values, as well as trending values over time. For this reason, insurers require regular value updates of items that have been scheduled. An update of your fine art is typically required every 2-4 years, depending on the insurer. It is important to understand that unless a piece or the collection has significant value, the insurer is unlikely to monitor and contact you to request the value update. However, that doesn’t get you off the hook if you have a claim. Your claim will be submitted, and it is likely to generate a requirement from your insurer to “get an appraisal to determine the current value.” Of course, if you are submitting a claim it is probably because the piece(s) are damaged, destroyed, or missing – making a value update problematic and satisfaction of your claim problematic. The answer – understand your insurer’s value update requirement and adhere.
Nugent Appraisal updates the values of hundreds of fine art items every month, usually from previous appraisals the owners have. Insurers typically accept the descriptions and images acquired by a previous appraiser to identify items. With this reliable information, the latest market data can be determined to bring the values current and satisfy the insurers’ requirement. If a previous appraisal is not available because it is lost, then you can secure the images and descriptions required by your appraisal company.
Are your fine art insurance values current so there is no concern if you must submit a claim? Contact your appraiser, or Nugent Appraisal, to ensure that you are sufficiently insured.
Ray Nugent, of Nugent Appraisal, is a senior appraiser with the highest level of appraisal education with the American Society of Appraisers. Serving all 50 states, Nugent Appraisal values thousands of items a month remotely from digital images, descriptions, and documentation provided by employees of Nugent Appraisal or Certified Appraisal Examiners trained by Nugent. Visit nugentappraisal.com for more information, or to contact Ray, call 239-353-7122 or email him.