MONEY
INSURING WEIRD AND WONDERFUL HIGH-NET-WORTH ITEMS
G
etting insurance for your
consider this volatility when
household contents and
assessing the value. However,
motor vehicles is pretty
any addition to a collection or
to valuable collectibles and
standard procedure these days.
modification to a bespoke item
memorabilia, the most common
However, how does one go about
will clearly have an impact beyond
pitfalls remain underinsurance or
insuring a Coca-Cola memorabilia
exchange rate fluctuations, and
not insuring the items at all.
collection worth about R750 000,
it is therefore recommended that
or a brand new Rolls Royce that
these valuations are done every two
have no intention to ever replace
was bought for R12m, then sent for
years to ensure your collection is
these items – perhaps because their
bespoke personalisation in Italy,
correctly valued.
for the joy of the collection.” Vlok says that when it comes
“This is often because people
real value may be more sentimental
resulting in the car arriving
“If there has been no
than financial – or they are
in South Africa worth
addition, the original
completely unaware that such items
about R25m? Tarina Vlok,
valuator will probably do a desktop re-
aren’t automatically included in a normal home contents policy.
General Manager
valuation based
at Elite Risk
on rarity, supply
these items properly will result in
Acceptances – a
and demand,
substantial financial loss should
subsidiary of Old
exchange rate and
something happen to them.
Mutual Insure that
exclusivity. With
Furthermore, if the items are not
new additions,
specifically excluded from the
provides bespoke short-term insurance solutions to highnet-worth individuals – says they have a panel of specialists that are able to
they prefer to do a new valuation.” These valuable items often carry specific storage and care requirements when being
“Nevertheless, failing to insure
contents sum insured, it may result in underinsurance, which could lead to the reduction of settlement amounts on claims.” Most importantly, however,
conduct valuations of these weird
insured. “Many valuable collectibles
Vlok highlights the need for
and wonderful items.
and memorabilia – particularly
specialist cover when it comes to
fragile items such as old books
insuring these weird and wonderful
to conduct this type of value
“The benefit of getting experts
or even designer clothing – may
collectibles and memorabilia.
assessment is that they have no
require temperature-controlled
“Given the high values at risk,
emotional connection to the bespoke
storage areas with controlled air-
their complexity, and the need
item or collection, and can therefore
flow and lighting.
for a bespoke service, insurance
assess the items from a purely
“In the case of looking after
for these high-value items is far
replacement-value perspective,” she
custom-made cars, clients will
removed from the high-volume
explains, adding that, often, these
usually have structured and
personal lines market. This is one
collections cannot be replaced, in
regular engagements with the
of the many reasons why specialist
which case the replacement value
vehicle manufacturers and/or
underwriters and brokers are
has to be agreed upon.
distributors to ensure that the
required to effectively service
engines remain in good running
the unique needs of the high-end
of most of these items is usually
condition. It also follows that
market,” she adds. •
closely related to the exchange rate,
these vehicles are not driven that
she says. “Professional valuators
regularly and are collected purely
Over time, the appreciation value
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SILVER DIGEST // WINTER 2019
First published in MoneyMarketing, April 2019
