POV: You’ve made the decision, 2023 will be the year that you update your insurance policy. Your broker goes through your existing list of scheduled items and you realize the values are out of date and there are high-value pieces missing. Your insurance broker says to get a certified art appraisal. What does that mean? Where do you get a certified art appraisal? Who is a certified art appraiser?

The quick answer— there is no such thing as a certified art appraisal or a certified art appraiser. Same answer for antiques. Baffling, yes? Let’s dive into the semantics.

THERE ARE NO CERTIFIED ART APPRAISERS. WAIT, WHAT?

There are no certified art appraisers because no governmental entity issues licensing or certifications to personal property appraisers. A personal property appraiser is a term that encompasses professionals who appraise property such as art, antiques, objects, cars, wine, jewelry, NFTs, etc.; and for us, there is no state bar examination or state board of examiners administering certifications. Real estate appraisers hold state licenses, but not personal property appraisers. While the US government (shout out to the IRS) may require art appraisals for charitable donations and estate tax, no government institution oversees or regulates personal property appraisers.

Could anyone off the street claim to be an art appraiser? Technically, yes. And there are many individuals who tout themselves as “art appraiser” who may not have the training, experience, or competency necessary to produce credible valuations. Unnerving? Absolutely.

QUALIFIED APPRAISERS

How can you make sure that you are getting a qualified personal property appraiser? Let’s throw it back to the omnipresent Internal Revenue Service for our first yardstick. To paraphrase the IRS definition (which can be found in full here): a qualified appraiser has verifiable education and experience valuing the type of property for which the appraisal is performed and has earned an appraisal designation from a professional appraisal organization or has met minimum education requirements and 2 or more years of experience.

Within this definition, we are introduced to the “recognized professional appraiser organizations.” The three largest in the US are The International Society of Appraisers (ISA), The Appraisers Association of America (AAA), and the American Society of Appraisers (ASA). Membership in these professional appraisal organizations means that the appraiser has committed to a code of ethics, demonstrated certain qualifications, and upholds standards. Within these organizations, there are levels of credentialing that are achieved through further education, testing, and hours logged. For example in the International Society of Appraisers, the levels are Member, Accredited Member, and Certified Member. And while there is not a “certified art appraiser,” there can be a “certified member” of a professional appraisal organization.

But does your art need to be appraised by a certified member-level appraiser? Not necessarily. Still confused? It’s ok, you’re getting ready to meet the star of the show.

Professional appraisal organizations educate all levels of professional personal property appraisers and keep members up-to-date with the standards and qualifications set forth by The Appraisal Foundation. The Appraisal Foundation is the congressionally authorized organization that sets the standards and qualifications for real estate appraisers and personal property appraisers. Per the Core Course Manual from The International Society of Appraisers, the good folks at The Appraisal Foundation are responsible for establishing, improving, and promoting the Uniform Standards of Professional Appraisal Practice (USPAP).

USPAP

USPAP! Is there anything better than a set of rules with a fun acronym? I don’t think so. Except when it comes with a 15-hour course!

Members of professional appraisal organizations are required to complete a 15-hour USPAP course and a 7-hour update course every two years. At the end of the course, participants get a document verifying completion of the course and passing the test. But this still isn’t a certification. They are not USPAP-certified. They can now write a USPAP-compliant report and the professional appraisal organizations have the authority to enforce USPAP compliance by their members. One significant component of a USPAP-compliant report is the signed Certification Statement. This does not make the appraisal a “certified appraisal” the appraiser is certifying their ethical obligations and acknowledging the standards by which they abide. They are not certifying the value.

So back to our scenario where the insurance broker has requested a certified appraisal. They are looking for a USPAP-compliant appraisal report from a qualified appraiser. As such, Lindsey Owen Appraisals is more than happy to assist you with all your art and antique appraisal needs, just send us an email at lindsey@loappraisals.com or give us a call at (859)797-8750.