The importance of maintaining up-to-date art, specie and valuables valuations

The importance of maintaining up-to-date art, specie and valuables valuations

Research suggests that 60-70% of high-value collections may be underinsured. Maintaining up-to-date artwork valuations is critical for the effective safeguarding of art, specie or other valuables collections. Regularly reviewing and updating the valuation with a certified appraiser ensures that insurance coverage levels are adequate, and accurately mirror the true value of the collection. 

Insurance coverage

Maintaining accurate and comprehensive records is vital for establishing the correct value of an asset or collection, particularly when it comes to protecting your investment in the event of loss, damage or theft. 

Detailed record-keeping ensures that both the owner and the insurer have a reliable basis for evaluating the collection’s worth. Keeping records of any appraisals conducted by professional valuers is best practice as having a history of these can track changes in value and ensure that the insurance coverage remains adequate.

Claims resolution

When an artwork, or valuable is damaged, stolen, or lost, the process of settling an insurance claim is significantly influenced by the valuation at the time of the loss or damage. 

If the artwork's valuation is outdated, it can create a substantial financial gap between the insured amount and the actual value of loss incurred. An outdated valuation may not reflect the current market conditions or the current state of the artwork, potentially leading to an insurance payout that is insufficient to cover the full extent of the loss.

Risk management

Valuations can also help with understanding the security and protection measures appropriate for the artwork, specie or valuable and ensure compliance with any insurance subjectivities which could impact claim settlement in the event of a claim.

As the value and condition of the collection may change over time, regular updates ensure that protective strategies and insurance coverage remain adequate and aligned with the current state of the collection.

If you would like more information on what insurance is available to protect your art, specie or valuables collection, would like us to review your current coverage and advise of suitability, or connect with our Howden Valuations team. We are here to help.