With last month’s wildfires hitting a little too close to home, many people began considering how to best protect their belongings, especially sentimental and important ones. While insurance acts as an overall shield, it usually doesn’t include items like expensive jewelry or artwork. That’s where art appraisals come into play. Standard home and renters policies place limits on art and other collectibles — usually somewhere in the $1,000 to $2,500 range, if that. Art, jewelry and other such valuables require a scheduled personal property endorsement, referred to as a rider, or floater. They often cover accidental damage or mysterious disappearances, as well as something like wildfire destruction. “These wildfires really started me thinking of what my coverages look like (because) throwing all your art into a car is not a good plan,” said Melissa Soltesz, an art appraiser and founder of Soltesz Fine Art. “Until we’re in a moment of crisis, we may not have a full understanding of what our coverage is in our insurance policies. Appraisal is not a priority a lot of time for folks. However, once we go through that process, I always hear, ‘I wish I had done this sooner,’ because it gives them a sense of comfort and relief that they have their objects and their assets really protected.”  Art appraisals delineate each item and its current value, along with pages of information on exactly how a professional appraiser determined the value. Of course, that’s subject to change with market fluctuations, so many homeowners update their appraisals on a regular basis. The first step involves delving into exactly what, and how much, your policy covers.  Then, it’s time to find a highly accredited appraiser to research your collection. Since neither state nor federal licensing for personal property appraisers exist like it does for real estate agents, it’s important to employ someone who is an accredited or certified member of one of the three national appraisal organizations: American Society of Appraisers, the International Society of Appraisers or the Appraisers Association of America.  Each one requires educational standards, as well as sample reports of appraisals, which governing organizations review and approve.  “We all follow the uniform standards of professional appraisal practices,” Soltesz said, adding that part of being a member demands testing on standards and any updates to the industry every two years. “There’s a framework to it, so all the documents are going to look pretty similar.” While homeowners who are unfamiliar with appraisals often expect one sheet of paper with a monetary value noted, appraisers research extensively and provide a multiple page report on each piece, which lays out a clear and concise path to how they determined the value, including comparable works in the marketplace.  “So anyone reading this document can fully understand how I got to the value I did, and it’s not just like, ‘Melissa Soltesz thinks this is worth $10,000,’” she said. “An art appraisal is really a snapshot in time because markets are always changing and shifting. Some artists may fall out of favor or gain favor, and that may happen over and over again throughout a decade or so.” As a result, art appraisals are best updated every 10 years, minimum, or in some cases every five years, she said. Appraisers charge either hourly or by the project depending on circumstances. Sometimes, the work becomes quite challenging; such was the case for Soltesz with valuable pieces from an artist who had died, with only one gallery left representing him and hardly any work available or sold on the current market. But whether it’s a tricky case or a “typical” one, Soltesz draws upon her 30 years of experience working in galleries in Portland, Oregon, and New York City, plus her 20 years as an art appraiser. Her expertise allows her to easily reach out to other appraisers and gallery owners to gather necessary information. While an appraisal for insurance purposes focuses on replacement value, appraisals for estate planning and distribution revolve around fair market value. “That can be very different because you’re looking at what pieces have actually sold for in the marketplace,” she said, pointing out that, again, value changes throughout the years. Like appraisals for insurance, this kind of estate planning can take a huge weight off of people during an incredibly stressful and painful time. For those that inherit the art, it provides a roadmap detailing when their loved ones purchased the art and its original value, as well as what it was worth during various appraisals. Melissa Soltesz stands among the artwork at Julie Nester Gallery in Park City. A fine art appraiser and private art advisor, Soltesz has spent more than 30 years working as a gallerist, curator and advisor to private collectors, corporations and institutions, specializing in Modern and Contemporary art. Credit: Jonathan Herrera/Park Record “It’s an encapsulation of all of the important information that you need to have for this artwork,” she said. “I’m studying the entirety of this (specific) artist’s market so I can account for any kind of ups and downs; we’re looking for the consistency. I’m going to go to as many galleries as I can that this artist is showing at and see what comparable works they’re selling for (because) if I were limiting myself to the gallery in which the artwork was purchased, then I’m potentially opening myself up to some bias there.” Art transfers and other high-value assets from older generations to younger generations are at an all-time high, which is why estate planning and art appraisals are so important, she said. “It really is ensuring that your family has an easy transition in this path forward after the loss of a family member,” she said, adding that she helps guide people in any next steps, particularly when it comes to selling or donating works. “I know the grief in that moment, and to have something off your plate (or to make it) a little bit easier and a little bit more organized actually can go a long way.” She recently appraised a single painting for a woman who had inherited the work, which she had always admired, from her grandmother.  “She was told it was an important piece, but she didn’t have any other information on the work or its provenance,” said Soltesz.  It turned out that the artist was a modern artist that ran with the likes of Jackson Pollock, Willem de Kooning and Sam Francis, to name a few. “Not a bad art crowd to be surrounded by,” said Soltesz. “She was having the appraisal done for insurance coverage and thought the piece might be valued as high as $10,000. She was absolutely flabbergasted when my appraisal came back at $100,000 for the small 9- by 12-inch painting.”  Soltesz said the woman was grateful that she heeded her family’s advice to have the work appraised. “This can be a common occurrence with artwork that is inherited if there is no previous record to provide any context for the work,” said Soltesz. Sometimes, she begins with just a couple hours of research for families, who then decide if they want to go further. She recommends appraising any work costing $5,000 or more, though it varies depending on personal preference.  While situations ranging from wildfires to estate planning can prompt an art appraisal, Soltesz said it’s a topic not commonly considered. In fact, when she tells people what she does, “inevitably, the comment is, ‘I’ve never met an art appraiser before.’” “This is a very unique, niche field — and it shouldn’t be,” she said. “A lot of the community needs (appraisals), but they may not be aware of it.” The post Why art appraisal matters appeared first on Park Record. ...read more read less