These appraisals can be complicated given an appraiser must first establish the value prior to damage, extent of damage, cost to repair or restore the object if restorable, and then loss in value. Sometimes objects cannot be restored to a satisfactory integrity and aesthetic, so it is a total loss. It helps exponentially to have current appraisals and photographs, so condition and value prior to damage can be established.
“Most damage occurs during transport, so it’s imperative to have a current appraisal.”
True Story: A collector has a painting scheduled on the insurance policy for nearly 20 years at current retail replacement value. The painting falls off the wall and sustains a large gash, and is a loss. The insurance company offers the collector the original purchase price from 20 years prior for $3500.00, rather than the scheduled current replacement value. The collector sues the insurance company using a third party appraiser and is awarded the full current replacement value of $25,000.00.