Simon Chadwick has commented for an article in Luxury London on the importance of ensuring luxury assets are suitably insured. Simon pointed out collectors will often ensure assets and collections are authenticated and be happy to “engage with the connoisseurship side of collecting – attribution, condition, market reputation, etc – because that’s where the passion and the perceived risk of being ‘duped’ sits”. On the other hand, insurance is “a cost line and an ongoing administrative obligation with no immediate reward,” so it’s easy to see why they may overlook it.
Simon also warned that the biggest risk of not getting luxury assets revalued is the financial shortfall in the event of a loss, theft or damage claim. Valuations that are not up to date can also lead to disputes when claiming. “Insurers may challenge a claimed value if it isn’t supported by a recent appraisal, and the burden may fall on the collector to provide evidence of value at the time of loss. This is obviously difficult to do if documentation isn’t current, and this can slow down or reduce a payout considerably at the exact moment a collector may need financial certainty.”
Simon's best piece of advice he’d give to collectors? “Authentication should be seen as the start of a discipline, not the end of one. Valuations for insurance purposes should be revisited every two to three years – or sooner if there are any significant market movements.”
Read the article in full