The Importance of Appraisals

An appraisal gives an official estimate of cost and replacement value for many objects. Appraisals are important when estimating insurance costs or even in court cases, such as divorce or other civil issues. Although appraisals are sometimes expensive, the protection they offer pays for itself.

The most important and most expensive include home appraisals, which estimate the cost of a home for resale or renovation purposes. Jewelry appraisals can cost hundreds of dollars, but insurance companies generally do not cover the replacement cost of jewelry without a proper appraisal in case of theft or damage. Even car appraisals are available; although, these are usually far less formal.

Casual appraisals may give a rough idea of cost, and many books and guides assist with this. Always make sure to keep appraisals current. Since the prices of homes, cars and even jewelry fluctuates depending on markets, an old appraisal might not give the full value.