Auction Replacement Value
Auction Replacement Value (ARV) – (usually for insurance purposes) is defined as a reasonable amount in terms of US dollars that would be required to replace a property with another of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant auction market. Since the client regularly and routinely buys at auctions, the appraisers rarely examined the retail market. When applicable, sales and/or import tax, commissions and/or premiums are included in this amount. (AAA 2019 Definitions of Value, p.1)
Used For: Obtaining insurance coverage for vintage and antique jewelry, as well as discontinued designer jewelry.