Having regular professional valuations to keep up with value fluctuations is the best way to prevent underinsurance. Art collectors should keep on top of news about their favourite artists or collections, and look up online auction sites to check the scarcity and popularity of related works. A dramatic rise in value will need to be insured to prevent loss in case of an unforeseen emergency.
There has been a trend in art prices increasing recently. The survey showed 76% of high net worth clients have seen their art increase in value over the past 12 months, with the same to be expected of the next 12 months. More than likely, those who appraise work annually have already seen their valuations become outdated.
It is recommended high net-worth collectors have their artwork collections valued annually, at a minimum. 50% of those surveyed admitted they have not had their artwork valued in the past year. 5% admitted they only have it valued every five years – this could mean their valuation is significantly out of date and they are at a great risk of underinsurance.
Be aware, that private clients with professional valuations of their art that are less than three years old at the time of loss could be inclined to more money from their insurer in the event of a claim. This is however dependent on the insurer and the policy details and will not apply in all cases – please read your documentation and contact your us to learn more.
When you invest in the finer things in life, they deserve the very best protection. Our high-net-worth insurance experts understand your lifestyle and the things that matter. That’s why we’re perfectly placed to protect clients like you, with the concierge service you would expect for Art Collection Insurance.
