Clients sometimes ask, "Why should I go to the trouble and expense of having my collection valued?" The answer is quite simple: "The purpose of insurance is to settle claims!" Insurers wish to be able to settle claims both quickly and amicably. A value, after all, is only a matter of opinion. By agreeing the level of settlement in advance negates the chance of any argument post loss.  
 
Attempting to place value on items once they have been lost or damaged is often a near impossible task. The unique nature of works of art means that the Art Market is very complex; two works by the same artist can have significantly divergent values over time. Other than recent purchase prices, values are a matter of subjective opinion. Put simply the ‘Art Market’ is not homogenous and therefore applying a general or ‘blind’ indexation across categories is often inappropriate especially in the current turbulent market.
 
Specialist collections of fine art and antiques should be specified and valued for its replacement on an ‘Agreed Value’ basis. Once a value has been ascertained, the client can then determine how they wish to insure the item against it. The ‘Agreed Value’ is flexible and can be adjusted as the client requires. Valuations can also be used to aid good housekeeping, such as securing the items found to be most valuable etc.
 
Valuers produce a professional document containing a detailed inventory which lists objects accompanied by a description including measurements and value. Digital images will also be included. These comprehensive inventories are useful to ensure that nothing is missed or duplicated.
 
A Valuer’s fee is based on the time spent assessing the collection, usually with a higher cost for the first hour, together with agreed travel costs and any additions fees and VAT as applicable. An indication of cost should be sought before a Valuer is instructed. Clients are advised to assist their Valuer by providing any purchase receipts or additional information which would reduce the Valuer’s time spent. A discussion is normally held where the client is asked about the level at which they wish to replace. Auctioneers normally give a range based on auction estimates as if in their own saleroom. A client can choose a low, mid or high level. Most independent Valuers suggest a retail replacement, unless otherwise instructed.
 
Remember, any item can be ascribed a value for insurance purposes; even if the client thinks that it is rare, unique, priceless! Clients often state that if an object is lost or destroyed, they would not replace it. That may be the case, but insurance is designed to protect their asset’s value in monetary terms; how the client spends their claims settlement is up to them.
 
The onus is upon the client to be able to produce a valuation to support any claim, so I recommend that a copy set of all records are held securely offsite. We recommend that valuations are reviewed at appropriate intervals, the average being four to five years.
 
We have a list of recommended Valuers who are known to us and are happy to recommend Valuers upon request. Wherever possible we like to recommend three Valuers so that we are not seen to favour any one firm. We recommend Valuers after ascertaining the nature of the collection and the valuation approach. The later varies from national to local auctioneers, large independent valuation firms to single category specialists.
 
Clients should be reassured that all values are confidential and are for the purposes of Insurance only.