Published: 24 Apr 2018
That’s why it is so important that you make sure that you do everything you can to protect them, and that includes making sure that you have the right insurance policy.
Nobody likes to think about loss, and that’s why people often procrastinate about insurance. This is a mistake, and so is failing to pursue intermittent updates on insurance once it’s in place. As insurers of items of remarkable value, we frequently hear about art insurance claims where the loss was exacerbated by coverage that fell short of the owner’s expectations. More often than not, this has been the result of failing to pursue current appraisals that are an accurate reflection of value.
Every insurance policy is based on the Agreed Value of the insured item. Art and collectible insurance policies contain detailed inventories that list and describe each item and the latest professional valuation. It is recommended that these appraisals be performed every three to five years in order to make sure that your coverage is in keeping with changes in market value. After all, why pay to insure art or antique furniture that may have dropped in value? You can have these valuations done by an auction house, or hire a professional appraisal firm. It’s a mistake to assume that your policy will automatically reflect value inflation: those that do often cap the amount to which a valuation can be assumed to have increased, and this can fall short of what the lost piece may have been worth.
The idea of obtaining multiple appraisals to cover large collections may seem tedious, but is usually worth the time and expense. Insurance policies that cover antiques and art generally have an established umbrella limit under a “total unspecified value,” and that can provide adequate coverage for smaller items. These policies usually limit that unspecified value at between $15,000 and $20,000 apiece, and do not cover items that are above that value: policies sold to cover a dedicated collection will be have a higher per item value limit of approximately $35,000 to $40,000 for each piece. Any individual item that is considered to be worth more than the policy’s unspecified value limit requires a listing on a separate schedule, citing its appraisal value as provided by the firm providing your valuation.
If you’d like to review your current coverage, contact La Playa today to set up an appointment for a personal consultation.