Real-Life Math
Art appraisers are hired by insurance companies to settle real and
false claims. In order to appraise successfully, you must be comfortable with
valuation science, which is a math-based study, says Gerri Samples.
Kathryn
Minard agrees that a qualified personal property appraiser is professionally
trained in appraisal theory, principles and procedures that involve
all aspects of science, not just art.
You are currently appraising
a piece of art for an insurance company, which pays 90 percent of claims under
$15,000. You assess the fair market value to be $8,000 to $10,000.
However,
in a recent auction record, you notice that this particular artist had been
more prolific than originally suspected. As such, you depreciate the value
of the painting by 15 percent. Fortunately for the insurance company's
client, the company pays the claim based on the high end of the range of the
fair market value.
What is the price the insurance company pays?