In 1991, a shopper at a California thrift store bought a painting for $5. Turns out it was a Jackson Pollock with a $50 million estimated value1. It appears that somewhere, over the years, someone dropped the ball in taking inventory and appraising their possessions. There are countless stories like this – illustrating the importance of assessing the value and contents of the valuables in your home.
Why should you appraise your possessions?
A proper valuation can help you with estate planning, taxation, and planning an investment strategy. From an insurance perspective, you’ll want to ensure that your valuables and collections have periodically updated valuations in case of loss, damage, or theft. You might discover that the Hermès bag that was purchased new substantially appreciated in value, and the total value of the designer bag collection in your home exceeds the coverage limit of your home policy. You’ll want to buy more coverage to ensure that the true value is protected.
When should you appraise your possessions?
It’s generally recommended that you appraise your high-value collections and possessions every 2 to 5 years, or if there is a dramatic shift in the market value for any of your collections. Aside from your obvious high-value collections like jewellery and fine art, you might also want to consider getting a proper assessment of your designer or antique furniture and décor. You never know if an individual vase in your study suddenly skyrocketed in value.
How to choose an appraiser
According to experts2, you’ll want an independent appraiser with no interests in the sale of any of your valuables. Look for an appraiser certified by a major appraisal organization like the International Society of Appraisers. You’ll also prefer an appraiser who charges a flat or hourly fee instead of a percentage of the valuation.
Put a price tag on love
Whether it’s handbags, wine, or watches, many owners and collectors of high-value items own these valuables out of love and passion, without fully realizing their increasing financial value. In fact, according to one study, only 49% of collectors have ever had their items appraised and almost half of collectors haven’t insured their collections3. By protecting the items you’re passionate about, you help protect your wealth.
1 8 Multi-Million-Dollar Masterpieces Found in Unexpected Places | HISTORY
2 How Do I Find an Appraiser to Value Antiques or Collectibles? | Money
3 The value of collecting | UBS United States of America
