How to Appraise Valuables for Insurance

Insurance for valuables is practically a necessity that everyone must have. When purchasing a new home, the finance companies insist that you have certain types of insurance. When appraising valuables for insurance, here are a few things to look for.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Paper
• Pen
• Appraisal certificates

1. Make a list of all valuables in your home. The standard homeowners insurance policy automatically covers appliances, televisions, stereo equipment, jewelry, furs and collectibles. If you have anything that is antique, rare or one-of-a-kind, it is recommended that you get a rider to your insurance policy. A rider is an extension to your insurance policy that broadens the limits on your homeowners coverage to allow for additional items. There are some extenuating circumstances where an item is of such a high value that it requires a special policy. Talk with an insurance agent to help you with those extenuating circumstances.
2. Check with an insurance agent on rare items that are breakable such as fine china and statues. Make sure the limits on your policy cover breakage. If you have several valuable items that are rare or antique, you may want to consider a blanket rider to your insurance policy. A blanket rider covers all items of similar value at one agreed upon price. If you have statues or china for example, you could purchase a blanket rider for a price of $100,000 that covers all those items.
3. Obtain an appraisal from a professional appraiser of high value items such as paintings. The appraiser will give you a certificate that you can submit to your insurance company verifying the dollar value of an item. Make sure the appraiser specializes in the item or items you want appraised. If you have a rare painting, hire an appraiser that specializes in rare art. If you have rare sports memorabilia, hire an appraiser specializing in sports memorabilia.
4. Install security systems in your home to protect your valuables. This not only will help you protect your valuables, it will help you receive an insurance discount.
5. Consider a general appraiser if you have several items to be appraised. The general appraiser will contact several specialized individuals to get the correct dollar value with certification of each valuable item.

Tips & Warnings

• Get as many free insurance quotes as possible, and compare the policies.
• Check the references of the appraiser you hire. This will ensure that your appraiser is knowledgeable in the field your valuable is in. Also determine whether the appraiser charges a flat rate or by the hour.