Replacement Value Appraisal for Insurance Claim Settlement Purposes Appraisal Report Intended user: John Panico, Heather Caraballo Affiliated Adjustment 3000 Marcus Avenue, Ste 3W3 Lake Success, NY 11042 Lorrayne Romano Travelers Insured/Claimant: Allison & Andrew Isaacs Claim Number: A15-9490 01669748 Job Number: 12462A Effective Valuation Date/Date of Loss: 8/13/15 Inspection Date: 10/23/15 Issue Date of Report: 11/5/15 All appraisals performed by Art Conservation Associates, Inc. s staff of professional appraisers comply with the current Uniform Standards of Professional Appraisal Practice (USPAP) and Code of Ethics of the Appraisal Foundation (sanctioned by act of the United States Congress) and the guidelines of the Appraisers Association of America. Report page 1 of 17
Table of Contents Scope of Work Page 3 Disclaimers and Limiting Conditions Page 3-4 Inventory/Narrative/Market Analysis Pages 5-11 Valuation Summary Page 12 Sources of Data Page 13 Certification Page Page 14 Appraisers Credentials Pages 15-17 Report page 2 of 17
Scope of Work Problem to Solve: The appraiser was asked to prepare an appraisal to establish a replacement value for insurance purposes. This report is not valid for any other purpose or for any other person or entity other than those listed below. Client: Affiliated Adjustment, Allison & Andrew Isaacs, Travelers Owner: Allison & Andrew Isaacs Effective Valuation Date of Appraisal: The values expressed in this appraisal are effective as of the date of loss of 8/13/15. Use of Appraisal: Claim settlement. User(s) of Appraisal: This appraisal can be used and relied upon by the clients. Any other user is considered an unintended user. Ownership Interest: We assume the owner as stated above, to hold 100% interest in the subject property. Authenticity: Although the appraiser is not an authenticator, the appraiser had no reason to doubt the authenticity of the work except as individually noted. Appraiser s Past Exposure to Appraised Objects: Although the appraiser has appraised similar objects for other clients, to the appraiser s best knowledge and recollection, this is the initial association with these particular objects. Specific Assignment Conditions (Assumptions): We assume all documentation and verbal information provided by the insurance company and/or insured/claimant to be accurate and correct, except as individually noted. We did not locate any current agreements of sale, validated offers, or third-party offers to sell/purchase the subject property. We did not locate any prior sales of the subject property. We were not provided with any additional information on the provenance of the subject property. Specific Assignment Conditions (Assumptions): We are unaware of any restrictions, encumbrances, leases, covenants, contracts, declarations, special assessments, ordinances, or other items of a similar nature as relevant to the assignment. Specific Assignment Conditions (Hypothetical Conditions): The item has been appraised in its assumed pre-loss condition, and this assumed pre-loss condition is a hypothetical condition. Any assessment of loss in value following restoration is a hypothetical condition, given as restoration has not taken place and the outcome of recommended restoration can only be assumed to the best of the appraiser s ability and experience. Report page 3 of 17
Examination: The appraiser examined the items under available light in situ. An ultraviolet light was not used to examine the items, as the environment was not conducive to such examination. The appraiser was able to ascertain the information as given in the descriptions from personal examination, the referencing photographs, supporting documentation, and personal research. The appraiser measured the works. Measurements are given to the nearest inch; height precedes width unless otherwise stated. Condition is based on the appraiser s observations, the referencing photographs, supporting documentation, and statements by the owner and/or client. Condition refers to what is considered generally acceptable, with ordinary wear and tear for its type, unless otherwise noted. Photography: Steven A. Leon took digital photographs of the items including details. Method of Research: Research was conducted in the offices of Art Conservation Associates, Inc. Additional research was conducted on the Internet using standard search engines as well as pricing data bases to which Art Conservation Associates, Inc. subscribes. Appropriate dealers, galleries, and auction houses were contacted for information when necessary. Specific sources and Internet sites are listed at the end of the report. Research was conducted by Steven A. Leon, Jennifer Maslowski, Robby Meighoo, Jan Jarecki, and Aron Cohen. Type of Appraisal: This report is considered to be a current summary appraisal report according to the rules of the 2015-2016 USPAP (Uniform Standards of Professional Appraisal Practice). This appraisal is considered to be current. Approach to value: The market data comparison approach was employed to arrive at the appraised replacement value. The income approach and the cost approach were considered and rejected as not applicable to this appraisal. Market examination: The appraiser must recognize that there are distinct levels of trade (measurable marketplaces) and each may generate its own data. Therefore, the appraiser must analyze the subject property within the correct market context. In the context of personal property, value can be a function of the choice of the appropriate market or, in some cases, market level for the type of item, the type and definition of value, and the intended use of the appraisal. Definition of Market Data Comparison Approach and Market Examined, Replacement Value: The "market data comparison" approach analyzes recent sales of comparable articles. Adjustments are then made for each article which consider age, condition, rarity, artistic merit, technical workmanship, current trends and availability of an article as compared to such recent sales. The market used was the primary retail market/wholesale market, including any relevant expenses. Type of Value Used: Replacement value. Definition of Value: Replacement value: the amount it would cost to replace an item with one of similar and like quality purchased in the most appropriate marketplace within a limited amount of time. (Appraisers Association of America) USPAP Compliancy: This appraisal report follows the guidelines of USPAP in that the report provides all of the necessary information/analysis to satisfy the current report development requirements as defined in Standard 7 (Personal Property, Development) and the writing requirements of a Summary Appraisal as defined in Standard 8 (Personal Property, Reporting). Report page 4 of 17
1. ARTIST: Martine Emdur TITLE: Underwater Figure MEDIUM: Oil on linen SIZE: 72" x 90" unframed DATE: 2006 NEW DAMAGE: Overall soot and accretions. Bubble wrap marks. RECOMMENDED TREATMENT: Surface clean and deodorize work of art, and change framing materials as is necessary. FEE FOR TREATMENT: $ 3,000.00 TRAVELER S SCHEDULED VALUE: $29,854.00 APPRAISED REPLACEMENT VALUE: $35,000.00 LOSS IN VALUE: Open. TOTAL ASSESSMENT: $ 3,000.00 1A Overall recto. 1B Previous condition: packed in bubble wrap. Report page 5 of 17
1C Previous condition/new damage: bubble wrap marks. 1D Overall recto, unwrapped. 1E New damage: overall accretions. 1F New damage: overall soot/accretions. Report page 6 of 17
1G New damage: overall soot/accretions. 1H New damage: overall soot/accretions. 1I New damage: overall soot/accretions. 1J Verso. Report page 7 of 17
2. ARTIST: Roy Lichtenstein TITLE: Imperfect MEDIUM: Woodcut, screenprint, and collage in colors on 3-ply Supra 100 SIZE: 67 x 80 sight DATE: 1988 EDITION: 8/45 NEW DAMAGE: The work of art shows light soot residue in the margins and the frame and framing material are soot and water damaged. RECOMMENDED TREATMENT: Surface clean and deodorize work of art and reframe. FEE FOR TREATMENT: $ 4,500.00 TRAVELER S SCHEDULED VALUE: $60,000.00 APPRAISED REPLACEMENT VALUE: $65,000.00 LOSS IN VALUE: Open. TOTAL ASSESSMENT: $ 4,500.00 2A Overall recto, framed. 2B Signature. Report page 8 of 17
2C Previous condition: tape residue on plexi. 2D New damage: soot and water damage to plexi. 2E New damage: soot and water damage to frame. 2F Verso. 2G New damage: soot and water damage to frame. 2H New damage: soot and water damage to frame. Report page 9 of 17
2I New damage: soot and water damage to frame. 2J New damage: soot and water damage to frame. 2K New damage: soot and water damage to frame. Report page 10 of 17
2L Overall recto, print removed from frame. 2M New damage: light soot/smoke residue. 2N New damage: light soot/smoke residue. Report page 11 of 17
Valuation Summary FEE FOR TREATMENT, ITEM #S 1-2: $ 7,500.00 TRANSPORTATION AND HANDLING (RETURN): $ 750.00 8.875% SALES TAX: $ 732.19 TOTAL: $ 8,982.19 LOSS IN VALUE, ITEM #S 1-2: To be determined after restoration, but in no case will the loss in value plus fee for treatment exceed the value of the work of art. COMMENT: The fee for treatment figures cover the cost to address claim-related damage only. If storage is required, it will be billed at a rate of $1,000.00 per month beginning 11/15/15. If rehanging is required, it will be an additional charge. Restoration estimates for items inspected in the studio may fluctuate if the items are removed from our care and control between the time of estimation and restoration. Items treated for smoke or mildew odor must be exhibited or stored unwrapped in a well ventilated area for at least six months following treatment and restoration. Report page 12 of 17
1stDibs.com Art in America ArtNet.com ArtPrice.com AskArt.com Etsy.com GoAntiques.com Invaluable.com LiveAuctioneers.com RubyLane.com Tias.com Trocadero.com WorthPoint.com Sources of Data Report page 13 of 17
Table Appraiser s Certification Total pages of report: 17 Total number of articles appraised: 2 Total number of images in report: 25 (additional photographs may be held in the archives of Art Conservation Associates, Inc.) Photographed by: Steven A. Leon Inspection dates: 10/23/15 Inspected by: Steven A. Leon Effective valuation date: 8/13/15 Issue date of report: 11/5/15 Art Conservation Associates is actively engaged in appraisals of the type, kind and character set down upon the annexed schedule. As per the appended curriculum vitae, we are qualified to render an appraisal of the items included in this report. We certify that, to the best of our knowledge and belief: -The statements of fact contained in this report are true and correct. -The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. -We have no past, present, or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. -We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. -Our engagement in this assignment was not contingent upon developing or reporting predetermined results. -Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. -Art Conservation Associates was paid an hourly fee for the appraisal portion of this report. -Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice 2015-2016. - Although the statements of fact contained in this report are true and correct, the values expressed herein are based on the appraiser s best judgment and opinion and are not representations or warranties that the items will realize such values if offered for sale in an appropriate market. -We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. -The person making a personal inspection of the property that is the subject of this report is listed above. -Persons providing significant personal property appraisal assistance are listed above. Report page 14 of 17
Appraiser s Qualifications Steven A. Leon CURRICULUM VITAE EDUCATION: Villa Schifanoia, Florence Italy M.A. Art History, 1972 Studied Painting Conservation, Paulo Gori Studio Florence, Italy, 1971-1972 University of Arizona B.A. in Art History, 1970 EMPLOYMENT: President, Art Conservation Associates, Inc. N.Y.C. 1976-Present President, Steven A. Leon Restorations, N.Y.C. 1973-1976 Independent Conservator, Guggenheim Museum, N.Y.C. 1973-1975 Independent Conservator, American Museum of Natural History, N.Y.C., 1975-1976 Independent Conservator, Cooper Hewitt Museum, N.Y.C. 1975-1976 Apprentice in Sculpture Conservation, Center Art Studio, N.Y.C., 1972-1973 EXPERIENCE: Personally researched and presented appraised replacement value, fair market value, actual cash value, and total assessment figures for well over 12,000 fine art and antique related insurance claims, estates, donations, and legal settlements. Report page 15 of 17
LITIGATION EXPERIENCE: Research; consultation with attorneys in connection with deposition and court testimony. Expert testimony at depositions and in court. PUBLICATIONS: A. Series of three articles written for the Weekly Underwriter, May 23, June 27, October 17, 1981; series entitled: "Fine Art Claims-The Role of the Art Consultant." B. Republished January, 1982, Adjuster's Guide. MEMBERSHIPS: Uniform Standards of Professional Appraisal Practice (USPAP Certificate, effective through June 30, 2016) American Institute of Conservators 1976-Present Appraiser's Association of America 1980-Present Blue Goose: New York City, Long Island and Westchester Ponds 1982-Present TEACHING: Presented slide lectures entitled, "Understanding Fine Arts Claims" - includes "Before and After" slides of damaged works of art; a discussion of appraisals and related topics at various insurance company offices, and insurance related functions. Over one hundred lectures 1983-Present Cooper Hewitt Museum, Smithsonian Institution. Taught classes in object conservation 1976-1979 GEOGRAPHIC AREA: Nationwide Report page 16 of 17
Appraiser s Qualifications Jennifer Maslowski, AAA Appraisal Experience: General Contents Appraiser, Art Conservation Associates, Inc. N.Y.C. 1994-Present Specializations: Household contents: antiques, fine art, decorative art Education: Bucknell University B.A. Art History/Economics, 1993 Seton Hall University Additional coursework, 1994-1995 New School University Additional coursework, 2001-2003 Appraisers Association Additional coursework, 2011-2015 of America, NYU School of Appraisal Studies Professional Affiliations: Appraiser's Association of America, Certified Member 2011-Present Uniform Standards of Professional Appraisal Practice, Certified (2011-Present) Experience: Personally researched and presented appraised replacement value, fair market value, actual cash value, and total assessment figures for well over 10,500 fine art and antique related insurance claims, estates, donations, and legal settlements. Litigation experience: Research; consultation with attorneys in connection with deposition and court testimony. Report page 17 of 17