The importance of up-to-date valuations.on
In today’s insurance market, there is no shortage of policies available covering the most precious of possessions for high net worth private clients.
With specialist Chartered Insurance Brokers on-hand to provide cover on everything from your collection of fine art (or fine wine) to classic cars, ensuring that you are adequately covered has never been easier.
However, with fluctuations in the value of such possessions, particularly in times of economic instability, clients need to ensure that they have the most current valuations in place, should the worst occur.
Did you know…?
Some policies on the market include depreciation cover specifically for art collections.
My possessions were valued when I moved in. Why bother?
This is a valid question from anybody looking to renew their insurance policies as quickly as possible each and every year. However it is vitally important to recognise how the value of your prized possessions can not only decrease over time, but in lots of cases, increase significantly too.
Having an up-to-date valuation ensures your policy covers specific items you have added to your collection as time passes. Whether this is an item of jewellery passed through the family or a piece of art added to the collection, the current value is essential in order to place you back into your pre-loss position quickly, should the worst occur.
How much can the value of my items actually fluctuate?
This is an extremely difficult question to answer and if the value of your art, fine wine, classic cars or jewellery was to rise significantly over time, you would want this reflected in your level of cover. Failing to do so could potentially lead to significant levels of loss on your part – which is the last thing you want when looking to rely on the claims process.
Here are just a few examples of how world markets may impact on your current insured items:
- Gold – from the beginning of 2016 up to the end of February, the price of gold surged by 15%. A number of reasons were reported to have had an impact, including cuts to production, increased demand and low average interest rates.
- Art – In February this year, sales at Sotherby’s and Christie’s hit a collective total of $210m – a drop of 45% on the same period in 2015. Sotherby’s International also reported a 5% fall in annual sales, after 5 years of growth.
- Classic cars – Total classic car auction sales in 2008 reached $457m. Although this dipped in 2010 to $421m, impressive figures of $610m (2012) and a much-improved $1.16bn (2014) reveal just why the classic cars market has boomed on the international arena.
- Precious stones – In 2015 the value of diamonds fell due to a number of reported reasons, including oversupply in the market. The impact was felt across the globe, but particularly in China, Russia and the Middle East.
How can I arrange a valuation of my prized possessions?
If you are in doubt as to whether you require an up-to-date valuation for an item, specialist Chartered Insurance Brokers are available to offer expert guidance and advice on your required next steps. This will ensure that any fluctuations in value are represented over time and that the true value for a replacement is provided, regarding the event of an insurance claim.