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Do you really need an appraisal?
Of course, there are many reasons to hire an appraiser aside from treasure hunting in your own basement. The most common reasons are for insurance, estate planning, and divorce settlement purposes. Insurance is a very important, and often overlooked, reason for hiring an appraiser. In many instances, the value of fine art, antiques, silver, porcelain, oriental rugs etc. appreciate considerably over time. In order to protect your investment, you should have an appraisal of estimated replacement value for insurance purposes. You should be aware that most homeowners’ policies cover ordinary personal property only. In most cases, such insurance would cover the upholstered furniture and general home furnishings. Rare and valuable items are typically excluded, and such pieces must be approved and insured as separate, scheduled items. Fortunately, this type of insurance is fairly inexpensive, usually only a few dollars per thousand dollars of coverage. Appraisals should be updated every three to five years in order to best protect your property and to maintain adequate insurance coverage. Appraisals are also necessary for estate planning and estate and gift taxation. For example, I have had many clients use appraisals as a guide to help distribute property during their lifetime, or to create legacies under a will. An appraisal can go a long way in settling disputes among family members. The IRS requires appraisals for gift and estate tax purposes, and also for charitable contributions. Other common reasons for hiring an appraiser are for equitable distribution in divorce settlements, charitable contributions and to assist in the sale of property
Of course, there are many reasons to hire an appraiser aside from treasure hunting in your own basement. The most common reasons are for insurance, estate planning, and divorce settlement purposes. Insurance is a very important, and often overlooked, reason for hiring an appraiser. In many instances, the value of fine art, antiques, silver, porcelain, oriental rugs etc. appreciate considerably over time. In order to protect your investment, you should have an appraisal of estimated replacement value for insurance purposes. You should be aware that most homeowners’ policies cover ordinary personal property only. In most cases, such insurance would cover the upholstered furniture and general home furnishings. Rare and valuable items are typically excluded, and such pieces must be approved and insured as separate, scheduled items. Fortunately, this type of insurance is fairly inexpensive, usually only a few dollars per thousand dollars of coverage. Appraisals should be updated every three to five years in order to best protect your property and to maintain adequate insurance coverage. Appraisals are also necessary for estate planning and estate and gift taxation. For example, I have had many clients use appraisals as a guide to help distribute property during their lifetime, or to create legacies under a will. An appraisal can go a long way in settling disputes among family members. The IRS requires appraisals for gift and estate tax purposes, and also for charitable contributions. Other common reasons for hiring an appraiser are for equitable distribution in divorce settlements, charitable contributions and to assist in the sale of property
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