For private clients, collections of jewellery, watches, art, gold and other treasured assets are far more than possessions. These items often represent years of careful acquisition, significant financial investment and carry deep personal meaning. Protecting these collections through accurate valuation and appropriate insurance is a fundamental part of long-term financial and risk planning. Without this protection in place, collectors may be left financially exposed should the worst occur.
At McClarrons Affinity, we specialise in providing tailored insurance solutions for our private clients. Our approach is built on experience, technical expertise and personalised service. We aim to ensure that your most valuable assets are protected in a way that reflects both their financial and sentimental value.
Why accurate valuation matters
Accurate valuation plays a central role in protecting collections. Over time, the value of many items can change considerably due to market trends, rarity, provenance or fluctuations in material costs. Without an up-to-date valuation:
- You may be underinsured, which is an issue we explore in greater detail later in this blog, including how underinsurance commonly occurs within valuable collections, and the potential consequences should a claim arise.
- You may face a shortfall in the amount your insurer pays after loss or damage, meaning you could be required to fund the difference personally if your collections are underinsured, a risk we also examine later in this blog.
Jewellery is a prime example for these risks, with value often influenced significantly by market demand and precious metal prices. For insight on rising valuations in this area, see our Value Of Jewellery Increasing, Are You Adequately Insured? blog.
Rare and luxury watches also command high prices in the secondary market. Their value often primarily depending on scarcity, brand and condition. Learn more about this category via our Rare Luxury Watches – An Investment Opportunity guest blog, written by Berry’s Jewellers.
The art market carries its own complexities. Whether you collect contemporary pieces or historical works, values can shift based on artist reputation, exhibition history and broader market sentiment. Additional perspective is available on our Buy Art With The Heart blog by Clarendon Fine Art.
When it comes to gold, the price is influenced by global economic conditions and commodity price movements. A post on our Facebook explores this further here.
Collections can also extend to stamps, coins, memorabilia and more. An overview of collections insurance is available at our Collections Insurance webpage.
How insurance helps protect your valuable collections
When your collections are properly valued and insured, you benefit from protection that is aligned with your specific risk profile. Key advantages include:
- Replacement or repair cover – Insurance can cover the cost to replace or restore items if they are lost, stolen or damaged.
- Agreed value terms – With agreed value cover, the insurer and client determine the value of items at the start of the policy. This removes uncertainty about settlement amounts should a claim occur.
- Worldwide protection – For clients whose collections travel with them, appropriate insurance can provide cover both at home and internationally.
- Specialist claims support – Claims involving high value or unique items require a tailored approach. Specialist high net worth insurers are better placed to assist with such claims; they can assist with documentation, valuation verification and settlement with care and discretion.
Risks of being underinsured
Underinsurance can still have serious consequences for collectors, even where an average clause does not apply. Where sums insured do not accurately reflect true values, an insurer may view this as a misrepresentation, whether carelessly, recklessly or deliberately, and may apply a remedy under the policy. This could include charging an additional premium to reflect the correct value, or, in more serious cases, voiding the policy entirely, potentially leaving clients exposed at the point of claim, and funding the difference of their high value items themselves. These risks can largely be avoided through regular valuation reviews and well-structured insurance arrangements.
At McClarrons Affinity, we recognise that private clients have complex and highly individual insurance needs. Our collections insurance expertise allows us to assess our clients risks effectively, supported by guidance on valuations that keeps pace with market movements. We work closely with specialist high net worth insurers and professional valuers, helping you ensure your policies remain aligned with current values and that clients receive support throughout the life of their policy and, when needed, during the claims process.
Latest insights on underinsurance among collectors
Recent research highlights that underinsurance remains a significant and growing concern for individuals with valuable collections; these statistics underscore the importance of regular valuations.
Recent surveys of collectors reveal the following trends:
- A high proportion of brokers believe underinsurance is widespread among high net worth clients, with around three quarters of brokers reporting that buildings, jewellery, contents and watches remain areas where underinsurance is most common. In particular, jewellery and watches are among the top categories where clients are thought to not have adequate cover in place*.
- Valuations can quickly become out of date, leaving clients unintentionally underinsured. Research indicates that a substantial share of high net worth collectors hold insurance based on valuations that have not been updated for several years, increasing the chance that current market values exceed the sums insured**.
- Many collectors do not value their collections regularly. More than a third of high net worth clients admit they cannot remember the last time they had their collections appraised, which can result in insurance cover that does not reflect true values***.
- The majority of high net worth clients recognise the need for stronger protection, with three quarters stating that they believe they should do more to protect their art, jewellery and other collections against risks such as theft, accidental damage and damage in transit****.
These findings demonstrate that while many collectors are aware of the need for protection, there remains a gap between perception and action. Without regular valuation and review of sums insured, individuals may be risking being underinsured at the point of loss.
For a deeper understanding of how underinsurance occurs and the consequences it can have on your collections, see our 68% of Private Client Collections at Risk of Underinsurance blog here.
For expert advice and bespoke insurance solutions for your valuable collections, contact our Art & Private Client team on 01653 602634 or at affinity@mcclarroninsurance.com.
Sources:
*Underinsurance is a pressing concern: new survey | Insurance Business
**Festive underinsurance risk reminder | News | Ecclesiastical
***HNW clients can’t remember the last time they had collections valued | News | Ecclesiastical
