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THE COMPLETE
GUIDE TO
LIMITED EDITION ART PRINTS
How to Identify, Invest & Care for Your Collection
by: Jay Brown |
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CHAPTER 18
- APPRAISALS AND INSURANCE |
Finding an Art Appraiser
Most insurance companies like to have
written appraisals of art from their clients once every one to two years. To get
the appraisal, the client should start by contacting the gallery where the art
was purchased. If the gallery still carries the work, they should be able to
issue a written statement of the current value. If they no longer carry the work
or aren’t knowledgeable about current values for the artist, they should be able
to refer the client directly to the artist, publisher or another gallery with
more knowledge and experience.
If the gallery is providing the appraisal, the value
they provide will be the dollar amount necessary to obtain the print at present.
If the print is still available through the publisher, the price might not have
increased at all. If the print is sold out, the gallery should be able to arrive
at the current retail cost after checking the various secondary market sources.
In some cases, the gallery might not be active in the
secondary market or they no longer carry the artist’s work. Even so, they can
probably still help by referring you to another gallery or giving you
information that will enable you to contact the publisher or the artist
directly. If that’s a dead end, then they can often refer you to a licensed
appraiser who can research the print and provide information about the value.
The going rate for an art appraiser is about $50 an
hour. The average piece takes about four hours of research, so the cost will
likely be around $200. You can locate an appraiser a couple of ways. Many
galleries have appraisers to whom they generally refer clients, or you can look
in the phone book under Art Service: Appraisers for an appraiser in your area.
You might want to do some of the initial legwork before
contacting the appraiser. By doing so, you’ll reduce the expense significantly.
If possible, be prepared to provide the appraiser with a biography of the
artist, including information about where the artist currently lives. You might
also want to gather any brochures about the artist so the appraiser can compare
your work to the artist’s other works. And if possible, try to recall when and
where the piece was purchased. If a sales receipt exists, that can help a lot
too. The appraiser will then use your information along with their sources to
research the piece.
If you end up contacting an appraiser, it is advisable
to locate an ASA licensed appraiser. Their training includes a degree from a
recognized institution of learning and two years of full-time appraisal
experience; they must pass exams on general value theory, technical expertise
and professional ethics; and must also undergo a background check of personal
and professional references. If you have difficulty locating an ASA-licensed
appraiser call 1-800-ASA-VALU for the names of professionals in your area.
Getting the Most Out of Art Insurance
The fear of an art heist, like we’ve all
seen on television and in movies, might be a little far-fetched for the average
art collector to imagine. However, protecting your art from a loss due to fire,
flood or an in-home accident can be very inexpensive and simple. All you
normally need to do is talk with your insurance representative.
Every insurance company handles art differently, but
the general rule with insurance is that any personal property is covered with a
standard homeowner’s policy — and this includes works of art within the home.
For a greater degree of coverage, collectors can obtain a fine arts floater and
“schedule” their art and collectibles (list them individually along with their
corresponding replacement values).
A fine arts floater will provide even more coverage for
a policy holder. For instance, there may be full coverage for the picture that
falls and breaks unexpectedly. But with a standard homeowner’s policy there may
not be coverage for such an occurrence. Another great benefit of the floater is
it generally has no deductible, while traditional homeowner’s policies do.
Standard homeowner’s policies cover a value of up to 50
percent of the home. In other words, for a $200,000 house, the standard
homeowner policy will provide for $100,000 worth of coverage for personal
property. With all the televisions, furniture, computers, etc., people own
today, a complete tragedy such a fire or flood can cause individuals to often
exceed their coverage very quickly.
The cost of the floater is very inexpensive.
Traditionally, the cost will be about $25 per year for each $10,000 of art,
which is a small price to pay for peace of mind. Take the time to sit down with
your insurance representative and find out about the different options for your
situation. It’s a simple task and it can save you thousands of dollars.
Framer’s Insurance
When a valuable print is given to a framer
for professional work, the collector’s personal homeowner’s policy is likely not
in force. The responsibility for the insurance is now the frame maker’s, which
can be a comfort unless you are privy to the company’s insurance situation.
To protect yourself, first call your personal insurance
agent for advice and clarification. If the work is extremely valuable, your
agent may want to request a letter from the framer’s insurance agent specifying
that your art is protected while in their care, custody and control. This same
philosophy also applies if you decide to loan your work to a friend. You are
probably going to find out that in most situations, you are uninsured.
If you care enough to insure the property when it’s in
your possession, then you should care enough to make sure you’re insured when
the property is in the possession of another. If you are concerned, it’s always
wise to take the necessary precautions for peace of mind, just in case something
unexpected should occur.
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