An appraisal is a professional estimate of the value of a piece of property. This is required to ensure that an asset is insured for the correct amount. To that end, most insurance companies will require an appraisal before you are insured and before processing a claim. Anything can be appraised, from a small individual piece of jewelry or artwork to vehicles, homes and businesses. In addition to insurance purposes, appraisals are also required before loans or mortgages are approved. There are four main appraisal categories, namely:
- Personal property appraisal which includes items such as artworks and jewelry.
- Real property appraisal is an appraisal of the value of your estate.
- Mass appraisal is a combination of your personal property and real property appraisal.
- Finally, a business appraisal is the value of all tangible and intangible assets that belong to a business.