Whether you have an antique grandfather clock, great Granny’s pearl earrings or the family’s favourite piece of art, we prefer to hold on to sentimental value rather than thinking about a price tag.
As a custodian of an important piece of your own family history, you will understandably feel obligated to insure your heirloom properly.
In order to do this, it is important to insure for the accurate “retail value” of your treasured pieces and not for the value allocated during probate.
The probate valuation will not take into account additional costs incurred in the process of making an item available for sale; cleaning/restoration; and the seller’s mark-up. The actual cost to replace the item, which is what you are required to insure for, will therefore be higher… by possibly some margin!
Probate value is an asset’s value determined per guidance set out by HMRC. You can read more here: https://www.gov.uk/valuing-estate-of-someone-who-died
The retail value or retail price is the gallery price, or in the case of antiques, the dealer price or the price it would fetch in an antique shop.
As heirlooms get passed down through generations, original retail prices can become lost in time. Original receipts, certificates and old valuations can be misplaced or expire.
Always obtain a professional valuation for the specific item. In addition, make sure the basis of the valuation is established and confirmed with the valuer. Is it for probate or for retail value purposes?
In the words of Mark Smith, Director at Quastel Associates, professional fine art appraisers:
“It is important to have up to date valuations, as art and antique values change over time. As artists and furniture move in and out of fashion; prices fluctuate. We strongly recommend you obtain an appraisal of your item(s) as soon as possible, to ensure it is correctly insured1.”
If your possessions are insured for less than they retail at, you will be in danger of being underinsured. This could present problems if you make a claim and at worst, result in your policy becoming null and void.
1. Telephone interview with Mark Smith, Director at Quastel Associates.
Whether you are already insured or looking to add to your policy, please contact us for assistance with reviewing your home and contents cover.
