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EVERYTHING
YOU WANT TO KNOW ABOUT VOST'S AND THE ART AND ANTIQUES
BUSINESS
Insurance replacement
valuation
An initial visit is usually
made to the client to give an indication of correct
insurance levels and possible security implications.
A quote to carry out the valuation of fine art and antiques
is normally provided at this stage. Various specialist
insurers will have their own threshold values where
an item should be fully detailed in an inventory. You
may have your own ideas concerning this point it is
therefore up to you to tell the valuer what you require.
Nonetheless, unless otherwise instructed, a valuer should
make notes and estimates of all items below the threshold
figures in case of a minor claim.
The majority of people are
underinsured. In the event of a claim many complain
that their insurer has been unfair with their settlement.
This usually arises because clients are underinsured.
If so insurers will apply their average clause (present
in most policies) whereby they will only pay a proportion
of what you were insured for. For example, if you are
insured at a total of £500,000 and you have a
total claim and the loss adjusters (these are like valuers
but work for insurers) deem that the risk should have
been insured for £1,000,0000 they will only pay
out half the amount you were insured for This is not
he insurers fault, it’s yours.
Your insurance valuation
inventory should act as a contract between you and your
insurers. In other words if you have paid a premium
for a specific item at a specific value then that is
what you should receive in the event of a loss. But,
you must keep up to date with your replacement values
and insure accordingly. Most specialist insurers are
fair minded and if you have genuinely attempted to insure
properly you will not be penalised.
When insuring, clients usually
forget all of those mundane items that make up a home.
Items such as white goods, linen, freezer stock, wine
stocks, clothing and garden furniture and equipment
are usually omitted but can add up to a tidy sum. Whilst
it is impracticable for a fine art valuer to consider
these things it is worthwhile including a guesstimate
as to their replacement value so that you are fully
covered in the event of a large claim.
Often insuring properly
can open a can of worms and this must be embarked on
only after careful consideration. Security will be the
biggest headache with insurers insisting on alarm systems
and security locks. These costs and increased premiums
will come to a substantial amount.
The security of your valuation
document is paramount; you do not want it to fall into
the hands of undesirables. Likewise there should be
no need for your insurers or their brokers to have the
document but you will have to show evidence that any
item you are claiming for was part of the valuation.
They will however require a breakdown of the separate
subject totals to help them assess the risks and premium
rates that apply to different subjects. The document
should be kept in a safe place. Most valuations have
a life of 3-5 years and if you have it checked at those
intervals the cost will be minimal. However, if you
leave it a lot longer then the costs of revision will
be much higher.
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