With South Africa having just celebrated Heritage Month in September, the country’s rich cultural beauty and diversity were once again underscored by its multicultural society, which brings with it a multifaceted heritage, represented by relics and items that must be preserved and protected.
While there are several ways to do this, owners of collectible items – such as sculptures and artworks that are steeped in either personal or national heritage – should consider obtaining the right insurance coverage to protect them.
South Africa has a multibillion-rand market for art and collectibles that appreciate over time, which is becoming a fast-growing asset class that requires specialist knowledge and expertise to protect and preserve and must be valued and insured accordingly.
This is according to Gail Bosch, Product Head at Artinsure, a division of specialist risks insurer iTOO, who says that owners of collectibles should not assume that these items would be sufficiently covered by general household contents cover.
“General household insurance does not take into account the peculiarities of collectible items that appreciate over time. The fact is that art and collectibles may not always be covered through your homeowners insurance policy for their full value, resulting in these items being underinsured,” she says.
“iTOO Artinsure is one of a few insurance providers that understands the value of art and collectables as much as collectors do, offering affordable, tailor-made insurance for such items. Together with our specialist products and services, we have access to an international network of independent evaluators, restorers, conservators and recovery agents.”
Exposed heritage assets
Bosch says that South Africa holds a significant amount of heritage artworks and collectibles that are exposed to the risk of theft and damage. If not adequately protected, these could be lost to the country forever.
“Certain items are simply not replaceable. I would urge collectors and owners of these items to become a little more conscientious about protecting their heritage. Specialist insurance is the instrument that is most effective for doing this because the loss of some of these collectibles could well mean a loss of heritage for our country,” she adds.
Aside from protecting themselves from financial loss, specialist insurance coverage can also ensure that artwork and collectibles that suffer accidental damage can be restored to their original condition. Bosch says that the Artinsure policy instrument provides for professional restorations of items that have suffered damage that results in immediate devaluation.
“Damaged artworks and collectibles will be restored by a professional restorer in their particular field. Once restored, the piece is then re-evaluated, so that we can determine how much it deteriorated in value following the restoration,” explains Bosch.
“Following the restoration, the client gets their item back, as well as the monetary amount that makes up the difference between the original valuation and the depreciated amount. Our policies are designed to compensate for the loss in value of these items, so clients are left in the same financial position they were in before the loss. I must mention that we have very highly skilled and professional restorers in South Africa.”
Continue to appreciate
She explains that even collectibles that lose some value due to damage and restoration will continue to appreciate with time, underscoring the importance of having such items properly insured and restored by a professional.
“Another thing that collectors should keep in mind is that for appreciating assets, we recommend revaluing every two years, and every year for contemporary works.
“In the event of loss or theft of appreciating items, our policy does allow for a pay-out of an additional 20% on top of the insured value, provided the client has a valuation that is less than two years old and where the appreciation is determined by an independent expert.”
She explains that the process of insuring valuable collectibles and artworks is fairly simple, with the starting point being the valuation of the item by a third party, independent valuer. Once the value has been determined, iTOO Artinsure can insure the items against financial loss. The company has a panel of independent valuers on hand who can assist clients to have their assets valued.
Dealing with claims
“What sets iTOO Artinsure apart from other providers comes down to claims and how we look after our clients’ claims. Our clients are covered for theft and accidental damage to the full value of the item. Unlike other insurers, we give clients the option to declare a total loss amount, even if the damage to an asset is slight and can be repaired,” explains Bosch.
“Regardless of how big or small the damage is, we give our clients the option to declare a total loss amount, in which case we will pay out the full value of the asset and then take possession of the item as salvage.”
She notes that a common issue is that the value of the assets people own or come into possession of, is often unknown - so they may have valuable collectibles and not even realise it. In cases where someone suspects they may have a valuable artwork or collectible, they are encouraged to approach a valuer or auction house to have these items appraised.
“Artinsure’s collectors products are specifically designed to ensure that your financial interests in your appreciating assets are protected. We provide full coverage for loss, theft or damage, whether the items are on your premises, in transit or entrusted to third parties,” Bosch concludes.
To find out more about iTOO Artinsure, click here.
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