2 Different Types Of Appraisals And Why They're Important

Appraisals of all kinds are done to find out the value of something. This could be anything from a piece of art to a large office building. These appraisals are important for multiple reasons because knowing the value of something is often required in many legal matters. There are several different reasons why appraisals may be performed, with some being more common than others. This article will discuss 2 different types of appraisals and why they are important. 

Insurance Appraisal 

In the case of an insurance appraisal, this is generally done to estimate the amount of damage that has been caused to something, such as a home or a car. For example, if your car is totaled or if your house is damaged in a fire, the damage is going to be assessed and a value is going to be placed on it. This value is then used by your insurance company to give you the funds necessary for the damage received. Without the appraisal process, you wouldn't be able to get the funds necessary to repair the damage because the cost of the damage would remain unknown. Keep in mind that if you don't agree with the appraisal value given by your insurance company, you can hire an appraiser of your own and have them work with the insurance company's appraiser to come up with a value that they both agree on. 

Divorce Appraisals 

When a couple gets divorced, they are going to need to split all of their possessions in a fair manner. This can be a very difficult thing to do without the help of an appraiser because they may not know how much things are worth and they may not be civil enough to try and figure it out on their own in a calm manner. For a fee, an appraiser can be hired to appraise all of the couple's belongings. This can include things such as their home, their cars, their recreational vehicles, and any other big items that they may jointly own. For example, if one spouse is going to be keeping the house and the other is going to be moving out, the appraisal value of the home will help them determine how much money that spouse that isn't living in the home will receive. This makes everything much more cut and dry and may allow the divorce process to go much more quickly. 

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Understanding Financial Freedom

About 10 years ago I can honestly say that I didn't understand what it meant to truly be financially free. I was bound by my monthly bills, just doing whatever it took to keep my creditors happy. It was a terrible way to live, and I was really depressed. I didn't know how to change things, but I knew that I had to start somewhere. Eventually, I decided that it would make the most sense to make a financial plan and try to dig myself out of debt. That simple decision was all I needed to completely change my life. This blog is all about understanding financial freedom.