Appraisals and Insurance

Some types of insurance policies require appraisals of goods being insured. Homeowners’ and renters’ insurance policies protect policyholders against the loss of personal property due to theft or damage. These blanket policies cover items up to a preset dollar limit (typically coverage for personal property falls between 50% to 70% of a dwelling’s value.) Collectibles in a home can exceed the value of the home itself, or at least enough that the items need to be scheduled assets on a separate policy in order to be reimbursed for the full value. Obtaining an appraisal of the contents of a home creates an inventory of the owner’s property and establishes its value, which helps to ensure a swift settlement if a claim is filed.

When the value of specific items exceeds a homeowners policy limit, the policyholder may wish to obtain additional insurance that covers luxury items such as jewelry or collectibles, including art objects and antiques. Before issuing personal property insurance policies for high-end items, many underwriters require applicants to have the object appraised. This is becoming more common as more natural disasters occur. The appraisal creates a record of the item’s existence, ownership and details.

Some insurance contracts include an appraisal clause that specifies the owner agrees to obtain an appraisal from a mutually agreeable expert in the event of a dispute between the owner and the insurance company. Neutral appraisals can speed the resolution of a settlement and keep disputes from escalating. Contact Antiquestor Appraisals, we would be happy to discuss the options with you.