has been flooded in the past 10 to 20 years, with Limited Edition art on paper,
touted as "signed and numbered investment art", observed Patrick B.
King, president of an established appraisal firm in the Chicago area, Patrick B.
King & Associates.
When dealing with water or fire damaged limited edition works, King advises
that both the
replacement cost and the restoration cost analysis be compared prior to making
any insurance settlement. Frequently, it is more cost effective to
replace the limited edition fine art print. In many cases the cost to conserve the damaged
art exceeds its current fair market value, additionally you must factor in
the loss in value to the piece after conservation. Replacing it provides
the owner with a piece of art in pristine condition, and the insurance company
with a more cost effective method to resolve the claim.
In todayís market the replacement cost is often less then
the original acquisition price. For example, in 1989 the Salvador Dali "Peace" Suite was offered for $20,000 for
a set of four images, or $5000 for an individual image. In 1998 the value had
decreased to $718 for the suite of four, and individual images sold at auction
for $179. These pieces decreased in value by 96%. Had these limited
edition prints been
damaged in a water or fire loss, replacing them would have been a more cost efficient
method to resolving the claim, rather than attempting conservation damaged art.
Patrick B. King &
Associates will evaluate the loss, provide a restoration cost analysis (with a
loss in value, if applicable) and the actual replacement cost. Occasionally,
King & Associates have physically replaced the prints when the insured opted for
replacement rather than a cash settlement. For additional information
contact Patrick B. King & Associates, Ltd.
Patrick B. King
Patrick B. King & Associates