Professional Insurance Valuations Q&A

When it comes to safeguarding your valuable assets, insurance coverage is essential. However, relying solely on guesswork or outdated valuations can leave you exposed to significant financial risks. That’s where a professional insurance valuation comes into play. Susan Orringe, a respected valuer in the art, antiques, and collectables sector, answered this useful Q&A.

Is it true that most people are underinsured?

Yes – however many people may be over insured in certain areas e.g “brown furniture” values in this area are considerably less than 30 years ago particularly due to a change in fashion and tastes.

Should my policy be index linked?

No, the value of art and antiques go up and down according to several factors such as fashion, rarity, demand, quality and size.

What types of professional valuations are there?

• Insurance
• Probate
• Willing buyer willing seller
• Chattels rentals
• Marital division

Why is a professional insurance valuation so much more than the market/asset value of an item?

The insurance value is based on what you may have to pay in the retail market taking into account such factors as age, quality, rarity, size and desirability. This figure is higher as it reflects such factors as showroom costs, retail mark ups, the cost of any restoration or repairs, and often a premium for the convenience of immediate purchase.

Is the state of the economy relevant?

Yes, particularly at the current time in this period of uncertainty the gold price continues to rise which of course affects the value of jewellery and watches needs to be reflected at the date of valuation.

Why is it necessary to have a professional valuation?

• Useful as it gives a full inventory of items in house or collection- often clients are keen to have a list for their children in the event of something happening to them
• Provides proof of ownership
• Establishes the level of cover needed in the worst-case scenario such as a fire. If the house burns down, you don’t want to be underinsured and not be able to replace items
• Some insurers give discounts for those who undertake to have a professional valuation and may even pay towards a having a valuation carried out

Some policies offer unlimited cover, or only items over a value of say £20,000 need to be specified. Is this a good idea?

• Be careful as in the event of a claim you would be required to provide details as to what you had. This could be extremely difficult and time consuming often at a difficult and emotional period.

• It would not give you an inventory of items in your house as many items could fall below the threshold.

Are photos important?

Extremely! It provides proof of ownership.

• Could be put on the Art Loss Register in the event of a loss or an advert in the Antiques Trade Gazette
• Helpful for clients and their children to identify their items

For more information on valuations and insuring your valuables, speak to the friendly brokers at Anthony Wakefield & Company. Call 01306 740 555 or contact them online here.