Appraisals used for Insurance purposes are done at Replacement cost.  Replacement cost is an estimate to replace your valuables with a new item of comparable look and quality.  This appraisal is used to determine an appropriate amount of Insurance coverage.  It is very important that an appraisal for Insurance purposes provides an accurate market estimate for the item at  true replacement cost.  If this amount is overstated, your valuables may be over insured causing you to  pay higher premiums than necessary. If a loss occurs and your valuables are over insured you will still only be able to receive from your insurance company the actual replacement cost no matter how high the appraisal is.