A couple of things to keep in mind:
First, appraisals are basically a testimonial from the appraiser stating that on a given date, appraised by particular appraiser, that said item is in a stated condition. This tells the insurance company exactly what kind of condition the entire instrument is in. Simply putting a dollar value doesn't cut it. This is why a complete appraisal is necessary to fairly determine the condition and value of the instrument. I usually state the structural condition, right down to the scratches on the cabinet. If a situation did occur and this ended up in a court case, the more information the customer has to prove their case, the more they are likely to win their argument.
Second, market value. What's something like this particular instrument realistically being sold for in your market or in other markets. If the instrument does get damaged severely, the insurance owns it. They want to know what they can wholesale the damaged instrument and recoup x amt. of dollars.
Thirdly, the replacement value/cost. Get the exact dollar amount from the dealer.
Bottom line is how the insurance company wants to approach insuring the instrument. If something would go bad during the move and the instrument is totaled, the insurance will take ownership of the instrument. The owner would be then entitled to a new instrument.
The owner has the option of buying insurance for the appraised as-is value or going for replacement value. The later is quite a bit more in cost, so most go for the current market value policy, reflecting the condition of said instrument.
On another note, as someone who sees quite a few of transients moving into our area, I've been called to appraise many damage instruments cause by bad movers. I've yet to see one insurance company or moving company really step up to the plate and really take care of the customer after a damage has taken place. The preverbal run-around two step bests describes customers trying to get reimbursed for damaged goods. I've seen quite a few cases go to the extent of getting lawyers involved to get action done.
Take the time to do a complete appraisal and be thorough. Charge appropriately for your time. Also take pictures of the instrument and include them as part of the appraisal. The pictures are generally the ace-in-the-hole when proving cosmetic damage after a move.
Tom Servinsky
----- Original Message -----
From: William Truitt
To: pianotech at ptg.org
Sent: Sunday, January 17, 2010 5:23 AM
Subject: Re: [pianotech] insurance evaluation on a Steinway B
I tell my customer to get this appraisal from me or another technician in writing, whether depreciation or replacement value. I send two copies to the customer, one for their records and one for them to send to their insurance company. That way, there is no dispute as to the assigned value if the house burns down or other misfortune befalls them. Of course, I typically charge for my time here.
Will Truitt
From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf Of Gerald Groot
Sent: Saturday, January 16, 2010 10:32 PM
To: pianotech at ptg.org
Subject: Re: [pianotech] insurance evaluation on a Steinway B
I usually advise my clients to make sure they purchase insurance as replacement coverage. I believe it used to be called "replacement insurance." Some insurance companies automatically give you depreciation insurance unless you specify otherwise. Tell her to update it periodically. If it were to be lost in a fire for some reason, she would obviously have to replace it. I tend to lean toward the higher side end to be safe.
Jer Groot RPT
From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf Of J Patrick Draine
Sent: Saturday, January 16, 2010 4:08 PM
To: Pianotech List
Subject: [pianotech] insurance evaluation on a Steinway B
Hi, I'm putting together an appraisal for customer who is heading out to retire in CA after a career of teaching piano in universities. She's bringing along her 1962 ebony Steinway B, and I'm eager for any input on placing a proper value on her instrument.
I have done some background research -- S&S has an MSRP of $81,200 (Larry Fine has $79,180 as the "street price"). So this should be the replacement price, if she elects to buy that level of coverage.
The piano was well maintained (she also had an L, and pianos in the university's teaching studio), but 48 years does take its toll too (brassy tone, but still quite enjoyable as is).
What do you see in prices for Bs these days? I have done some price comparisons from a large sampling from the pianomart.com site, but these are "asking prices", not actual sales prices. For the moment I won't post those numbers.
For those of you selling "quality used", as well as your restored (to totally re-engineered), Steinway Bs, your input and advice would be greatly appreciated!
Patrick Draine
Billerica, MA
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