The short answer
Publication 561 makes the point with jewelry: an appraisal obtained so an insurance company would reimburse you for the insured value does not reflect what a willing buyer and willing seller would pay. It reflects only the replacement cost at the time of the appraisal. Fair market value is the yardstick for donations, estates and gifts, so an insurance schedule is not a substitute for it.
If a piece is lost to theft or damage, Form 4684 reports it. Publication 547 explains how the loss is figured: from your adjusted basis and the decrease in fair market value caused by the casualty or theft, reduced by any insurance or other reimbursement you received or expect to receive. For personal-use property, deduction limits apply. The same publication says that to figure the decrease in fair market value you generally need a competent appraisal.
How a claim is paid is decided by your policy, not by a market price. Check whether it pays replacement cost, actual cash value or an agreed value, and ask your insurer or broker how your schedule is set.
The forms that apply
| Form or rule | What it asks for | Read more |
|---|---|---|
| Form 4684 | Casualties and Thefts. Used to report a loss from theft or damage to property. See the instructions and Publication 547 for the rules on personal-use property. | IRS Form 4684 instructions |
| Publication 547 | Casualties, Disasters, and Thefts. Explains how the amount of a loss is figured and how fair market value before and after is measured. | IRS Publication 547 |
| Fair market value vs insured value | Publication 561 explains why an insured value is not fair market value. It matters if you later donate, gift or leave the piece. | Our year-end valuation guide |
What to gather
- Your current policy and the schedule, with the value stated for each item.
- Purchase receipts and the date you acquired each piece.
- Photos of each piece in its current condition, and serial numbers.
- Any existing appraisals, with their dates and what kind of value they state.
- After a loss: the police or incident report, photos of the damage, and the insurer’s correspondence and settlement.
- Comparable sold prices for the same model, with leather, hardware, size and year noted.
Worked example: a Hermès Birkin 25 in Togo leather
Suppose your schedule lists a Hermès Birkin 25 in Togo leather. Here is what that size and leather sold for at Christie’s and Bonhams between 1 November 2025 and 31 October 2026. Limited editions and special orders are left out.
| Sale date | House | Piece | Sold price (USD) | Sold in | Lot |
|---|---|---|---|---|---|
| 1 Jun 2026 | Bonhams | Bleu Électrique, palladium hardware, 2011 | $13,066 | HKD 102,400 | View |
| 26 May 2026 | Bonhams | Béton, 2022 | $25,316 | EUR 21,760 | View |
| 11 Mar 2026 | Christie's | Mushroom, palladium hardware, 2023 | $17,854 | HKD 139,700 | View |
| 11 Dec 2025 | Christie's | Bleu Nuit, gold hardware, 2021 | $27,940 | USD 27,940 | View |
| 10 Dec 2025 | Bonhams | Bleu Jean, 2006 | $16,640 | USD 16,640 | View |
| 25 Nov 2025 | Bonhams | Craie, 2023 | $22,234 | EUR 19,200 | View |
| 24 Nov 2025 | Christie's | Béton, gold hardware, 2023 | $19,599 | HKD 152,400 | View |
| 24 Nov 2025 | Christie's | Bleu Nuit, palladium hardware, 2025 | $24,498 | HKD 190,500 | View |
| 24 Nov 2025 | Christie's | Chocolat, gold hardware, 2019 | $19,599 | HKD 152,400 | View |
| 13 Nov 2025 | Christie's | Vert Vertigo, gold hardware, 2024 | $17,732 | EUR 15,240 | View |
| 13 Nov 2025 | Christie's | Étoupe, gold hardware, 2023 | $28,075 | EUR 24,130 | View |
How to read this. These are sold lots only, not estimates and not asking prices, matched on the model or reference. The USD figure is the price the house recorded, converted at a rate near the sale date; the "Sold in" column shows the original currency. Whether a recorded price includes the buyer’s premium depends on the house. A lot listed under two links is counted once. Condition, completeness, dial and provenance move individual prices, so a range is a starting point and not an opinion of value. Figures pulled from our data on 11 November 2026.
The spread is the lesson. Colour, hardware and year move the price a long way, so a schedule line that says only “Hermès Birkin 25” can sit far from what any single comparable sold for. A like-for-like comparison, with the leather, hardware and year noted, gives a firmer picture of market value. It does not tell you what your insurer will pay.
Two ways to go from here
See what it sold for
The free Price Check shows real sold prices for the same model, with dates, houses and a low, median and high.
See what it sold forNeed it in writing?
Open the ALT/FNDATA Wealth app and tell us the piece and what it is for.
Request a valuation report or a qualified appraisalTools that fit
Frequently asked questions
Is insured value the same as fair market value?
No. Publication 561 says, using jewelry as its example, that an insured value does not reflect what a willing buyer and seller would pay and reflects only replacement cost. Fair market value is the price a willing buyer and seller would agree on, with neither forced to act.
Which form do I use for a theft or damage loss?
Form 4684, Casualties and Thefts. Publication 547 explains how the loss is figured, from adjusted basis and the decrease in fair market value, reduced by insurance or other reimbursement, and notes that deduction limits apply to personal-use property. Your CPA confirms how it applies to you.
Do I need an appraisal after a loss?
Publication 547 says that to figure the decrease in fair market value because of a casualty or theft, you generally need a competent appraisal, though other measures can also be used to establish certain decreases. Your CPA and insurer advise on what your claim needs.
Can ALT/FNDATA tell me what my insurer will pay?
No. Your policy decides how a claim is paid. We show what comparable pieces actually sold for, which helps you check whether the values on your schedule are in line with the market.
How do I check the values on my insurance schedule?
Compare each line with what the same model, size, material and year sold for. The free Price Check shows real sold prices with dates and houses.
Sources
- IRS Publication 561, Determining the Value of Donated Property (Rev. December 2025)
- IRS Publication 547, Casualties, Disasters, and Thefts (2025)
- IRS Instructions for Form 4684, Casualties and Thefts (2025)