How often should you revalue your art and jewellery for insurance?
The short answer: every three to five years, and sooner if the market has moved or the collection has changed.
Why values drift
An insurance valuation records what it would cost to replace each item in today’s market. Markets do not stand still. Jewellery follows the price of gold and diamonds. Some artists’ prices have risen sharply in the last decade, while whole areas of the antiques market have fallen. A schedule that was right five years ago may now leave you underinsured, or paying premiums on values that no longer exist.
The cost of underinsurance
Many household policies include an ‘average’ clause. If your items are insured for less than their true replacement value, the insurer can reduce a claim in proportion. Insure a collection worth £200,000 for £100,000, and a £20,000 claim may be settled at £10,000.
Overinsurance is the opposite problem. You pay a higher premium every year, but an insurer will only ever pay the actual cost of replacement.
When to revalue sooner
- After a purchase, gift or inheritance
- When gold or diamond prices move sharply
- When an artist’s market changes, for example after a major exhibition or a record sale
- When moving to a new insurer, who may ask for a recent valuation
- After moving house, so the schedule matches each room
Between full valuations
A full revaluation every three to five years suits most collections. In between, the schedule can often be reviewed against the market without a new visit, which keeps cover in line at a fraction of the cost. We can advise on the right interval for your collection.
Coram James carries out RICS-regulated insurance valuations of fine art, jewellery and collections. Call 020 7305 7360 or contact us.
