Protecting Family Assets and Heirlooms

Protecting the precious and the priceless. Personal art collection or one-of-a-kind jewellery heirloom, safeguarding high-value possessions takes careful planning.  Here our high-net-worth risk specialists outline 6 key strategies to help you safeguard your legacy for future generations.

While most people associate risk with theft or fire, the reality is that many high-value possessions are damaged or lost due to less obvious threats. Improper storage, accidental damage and fluctuating market values can leave individuals under or completely unprotected.

1. Don’t let your valuables be undervalued

From haute couture to art and antiques or an heirloom watch, you may be sitting on a wealth of underinsured family assets.  But when was the last time you had your portfolio valued?

Whenever you invest in art or wine, do you add them to your policy immediately? Or do you wait until it’s time to review or renew your insurance?

The more high-value collectibles or irreplaceable heirlooms you own, the more complex your insurance considerations become. Many high-value, highly coveted items may not be covered by your insurance if they are not specifically detailed in your policy.

Out-of-date valuations and omission of assets are a key risk for HNW clients. In fact, 78% of brokers think HNW clients are underinsured due to outdated valuations.  Three-quarters believe HNW clients have insurance based on valuations over five years old and 24% say clients have insurance based on valuations that are over a decade old.

By having regular, professional valuations of your luxury items, your insurance policies will accurately reflect your changing asset portfolio.

2. Engage a specialist valuation expert

Although it’s possible to find the approximate value of most assets online, bespoke, rare or inherited pieces of jewellery, heirloom antiques or unique art collections, should always be evaluated by experts in their field to establish their true and present value.

An experienced high-net-worth insurance broker will be able to recommend trusted valuers and help ensure that each item is correctly reflected within your policy. In some cases, your insurer may even offer complimentary or subsidised valuation services as part of a private client package.

It’s essential to work with a professional valuer who has specialist credentials and market expertise – who will not be influenced by emotional attachment. This is especially important for specialist or niche collections such as classic cars, rare wines or fine art where an experienced valuer will understand market trends and provide a more accurate appraisal.

A thorough valuation should go beyond a simple estimate. It should include detailed descriptions, condition reports, provenance information and high-quality photographs or videos. You should also consider how often your assets are reassessed. Markets shift over time, and what was accurate five years ago could be significantly undervalued today, particularly in fast-moving sectors such as contemporary art or luxury high-end watches.

Plus, you’ll have documentation to support your valuation in the event of a claim, which will speed up the pay-out process

3. Watch out for commonly undervalued assets

Some of the most frequently undervalued possessions are those we see or use every day. Jewellery, especially pieces inherited through family, is often insured based on historical or sentimental worth, rather than current market value.

Artworks by emerging or regional artists, now growing in prominence, may have quietly appreciated in value without a formal reassessment. Vintage watches and luxury handbags which are often bought for pleasure rather than investment can command prices at auction that far exceed their original purchase price.

Wine cellars, designer furniture, musical instruments and even garden architectural features such as antique gates and fountains are also commonly overlooked. In many cases, owners simply don’t realise these items require specialist valuation or separate insurance schedules.

4. Ask about cover that’s tailored to your collections

Specialist high-net worth insurance brokers may be able to offer policy features such as agreed value settlements in the event of a loss, worldwide all-risk cover for those with multiple properties or who travel frequently with valuables, and restoration clauses that allow for both the cost of repairs and any subsequent loss in value.

For collectors or those with matched items like a pair of earrings or a full dining set, it’s also worth considering whether your insurance includes a ‘pairs and sets’ clause, which compensates for the loss of aesthetic or functional value, even if only one item is damaged or lost.

5. Invest in storage and security for peace of mind

The way you store and protect your possessions has a direct bearing on their safety and insurability.

Climate-controlled environments may be necessary for certain types of art, wine or documents. High-value jewellery that is not regularly worn should be secured in a safe that meets insurer standards. Larger collections such as artwork or antiques may benefit from secure display and storage solutions that protect while still allowing enjoyment.

Your insurer may recommend, or even require, certain security measures for your home depending on the value of your collection. This can include advanced alarm systems, surveillance cameras or manned security for particularly high-value estates. Taking these steps not only helps prevent loss – it may also reduce your premiums.

6. Plan for the future

Many of the most treasured assets people own are passed down through generations and protecting them involves more than just insurance. Succession planning plays a critical role.

It’s important that your will reflects both the financial and sentimental value of your heirlooms, and that beneficiaries are equipped with the information they need to preserve them. Keeping clear records of provenance, storage recommendations and recent valuations can help ensure a smooth transition and prevent future disputes or uncertainty.

Furthermore, it is becoming increasingly popular to use collectors’ items as an investment for retirement so they must be protected to preserve a predicted lifestyle.

Insuring you for generations

It’s hard to put a value on the sentimental, but we can. Our team of discreet and professional experts can offer advice on all aspects of protecting emotionally and financially valuable assets.

For advice on insuring your precious possessions, contact our team.