posted: 6/1/2012

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In June 2012 Laguna Beach Magazine, three local art experts share why appraisals will benefit collectors in the long run. Miriam Smith, Art Resource Group principal (from the article):

Appraisals give insight into the ever changing resale markets and can even help you make future purchasing decisions. [For insurance purposes], we usually recommend that clients individually schedule on their policy all art valued at $2,000 and above. Insurance appraisal establishes the cost of replacing an item at a retail establishment if it were to be lost or damaged, also known as the "retail replacement value." For succession planning purposes, what you'd really want to know is the resale value of your collection, [and] how much you would likely realize if you were to sell the pieces. If it's been several years since your last appraisal, you'll want to have an appraiser re-evaluate the market to make sure you still have adequate coverage. On the other hand, if the market for your work has really decreased over the years, you want to make sure you're not paying too much for coverage you don't need. We see works of art increase in value all the time - the art market can be fairly volatile - and it's important to establish that you're insured at a level that will enable you to walk into a gallery and buy a comparable replacement painting if yours was to ever be lost or irreparably damaged.