I have a question for readers, and please feel free to send back replies or post any comments. Over the past six months I have seen a rather noticeable increase in the number or request for replacement value appraisal in order to obtain collector's insurance. The interesting aspect of this increase in insurance assignments is that I am finding that the insurance companies seem to be requesting (actually requiring) a qualified appraisal for stated value policies and collector blanket policies where an object's value is over $5,000.00.
My question is, are other appraisers seeing the same trend that I am? I am not complaining, as the work is good, and the assignments are interesting. For example, over the past week alone I have received 4 insurance appraisal calls for appraisals of single paintings, with 3 of the 4 calls at the behest of the insurance company. The value ranges the clients were talking about for stated values potentially range from $10,000 to $1 million. We will soon see.
Perhaps 8-10 years ago I was doing a strong business for clients looking to haver their collections appraised and the client would then take the report to the insurance company. Now, I am finding that many calls from potential clients come after they have spoken with their insurance agent about adding or changing an item on their collector's policy and the requirement to have a qualified appraisal by a qualified appraiser.
With the strong growth and interest in fine art, from a collector and investor perspective, it is nice to see the insurance companies doing their due diligence and what appears to be strengthening internal controls when it comes to state value, as well as high value blanket policies.
I would love to hear back from fellow appraisers and see what you think about the current climate we are in for insurance appraisal assignments.
4 comments:
Todd, yes our firm is seeing a rise in requests for insurance appraisals, and many are coming at the request of the insurance companies. Unfortunately, although some agents are suggesting that their clients obtain qualified appraisers, many are also still referring to individuals who perform appraisals without qualifications. Worse, there are some who are referring to individuals who misrepresent their credentials without checking in with the appraisal organizations' databases. So, we as qualified appraisers still have some work to do in educating users. We are also seeing more estate attorneys asking for credentialed appraisers. This is terrific. I expect demand for qualified appraisers to continue to trend up as more attention is given in the press to stories of abuse and loss of value associated with those operating with bias or without sufficient background. The work of the appraisal associations in working together to promote awareness of qualifications will also protect the public.
Thank you for what you accomplish with this blog. It's the only platform, of which I am aware, dedicated to the personal property appraisal profession. You've done much to elevate the converstion. -Cindy
I just got an appraisal call for artworks that the people JUST bought, but the insurance company would not let them insure without an appraisal.
I plan to find out the insurance company name and contact person, to raise their awareness of asking for appraisals from qualified (certified) appraisers.
Thanks for all you do, Todd!
BTW- those works are all under $5,000!!! I was actually surprised that the insurance co. would need an appraisal for works of that value!
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