Lessons from Sandy: Protect Your Valuables with Private Client Group Insurance
Superstorm Sandy caused devastating wreckage across the East Coast. As businesses are beginning to recover their losses and rebuild, the art industry has been hit particularly hard. The damage shows the importance of protecting your high end valuables with private client group insurance.
Fine art insurers are facing claims up to half a billion dollars for artwork destroyed when waters flooded the Chelsea district of Manhattan, where many New York art galleries are located, according to Reuters. One insurer expects to pay out $40 million in claims, and brokers and underwriters say the total loss could reach $500 million.
The value of high net worth coverage can be seen in the damage caused by Superstorm Sandy. Having such high value collections also significantly increases your risk. Art insurers previously expressed concerns that art storage warehouses had accumulated too many costly pieces in a single location, exposing them to significant losses if the facilities flooded or caught fire. Yet despite the warnings and seeing the damages from Sandy up to 60 percent of individuals who qualify for high new worth policies remain with standard insurance carriers, leaving them exposed and underinsured.
Standard homeowners policies do not cover valuable art collections, jewelry, or any high worth collectibles. To make sure you are covered in the event of damage, you need an additional floater or high net worth policy to get adequate protection.
Part of the issue is a lack of knowledge about an item’s worth. Many homeowners amass collections of art, antiques, jewelry, and other collectibles, but are unaware of how much their collections are actually worth. To protect your collectibles, an appraiser should assess your collection every few years, so you have reliable, updated reports on how much everything is worth.
At Sinclair Risk & Financial Management, we have access to particular markets that enable us to craft custom homeowners and auto insurance programs that reflect the true value of your property, your risk profile, and your personal circumstances throughout the world. We’d love to sit down with you and discuss more about the special programs and private client group insurance coverage we can develop just for you. Contact us today for more information.