YOUR COLLECTIBLES MAY BE WORTH MORE THAN YOU KNOW

Have An Appraiser Review Collection To Determine True Value

NEW YORK, NY, DECEMBER 19, 2001 --Collecting various items for sentimental, artistic or monetary reasons is a favorite pastime for many people. While everyone expects museums collections of impressionist paintings, Roman sculpture and art deco jewelry to be extremely valuable, people are often surprised at how valuable their personal collections are.

In today's society, collecting objets d'art and other items is a $7.1 billion industry encompassing 42.9 million U.S. households, according to Unity Marketing, a market research and consulting firm. "While some people intentionally choose to collect certain objects and spend years amassing their collection," said Grace Thomas, assistant vice president, Atlantic Mutual Marine Insurance Division. "others begin collecting because they receive a collectible item - a piece of Steuben crystal, a dolls or a baseball card -- on birthdays, anniversaries and holidays. Without realizing it, they have a collection."

If you are one of the more than 42 million households with collectible objects, now may be the time to take stock of your collection to make sure it's insured properly. Many people look at their collections as a group of individual pieces as opposed to a singular collection. After years, the collections' total value may be considerable -- and more than the sum of individual items.

"The first step towards insuring collectibles is to have them appraised," said Thomas. "I suggest contacting the Appraisers Association of America to find a qualified appraiser. Depending upon the collection's value, the limits and coverage provided under a standard homeowner's insurance policy may not be adequate for the collection." According to Thomas, collectors should consult with their independent insurance agent to review their coverage choices. The best option is "scheduling," which means you list items in your collection individually either under your homeowners policy or on a separate fine arts and valuables policy," said Thomas.

Collectors should also consider how they want their collection to be valued if a loss should occur. One method is agreed value, which means that the owner and the insurance company decide on a set or "agreed" amount that will be paid in the event of a total loss. A second method is market value. The market value of the item is the value that could have been received had the object been sold on the date of the loss and is often subject to a limitation usually 150% of the scheduled amount on the policy.

Sentimental Value Important Too

While it is important to have adequate coverage in the event a collection or pieces of a collection are destroyed or stolen, collectors are more concerned with preventing losses or having damaged items repaired or restored. "Money can't replace unique items, such as a painting by a deceased artist, a baseball signed by the World Champion '51 Yankees or heirlooms that have been in the family for generations. Collectors should try to find an insurance company that can offer assistance with restoration or repair, and that is a member of IFAR (the International Fine Arts Register), which works with law enforcement and insurance companies to try to recover stolen items," added Thomas. In addition, some policies provide a reward incentive for the recovery of a lost item as well as an option, if a claim has been paid, to "repurchase" a recovered object years later for no more than the amount of the claim, paid regardless of appreciation.

Atlantic Mutual Insurance suggests the following tips to help protect as well as insure a collection:

  • Have collectibles appraised. -- Contact the Appraisers Association of America at 212.889.5404 or www.appraisersassoc.org for the nearest and most expert member.
  • Protect and store your collectibles and fine art appropriately -- Consult an expert to determine the best temperature, humidity and light conditions for your wine cellar, rare books and manuscripts, photographs, works of art and other items that can be affected by the environment. Secure items like jewelry in a home safe or safe deposit box at a bank.
  • Catalog your collection -- Keep up-to-date photographic and written records of all items in your collection. Include appraisal information, and keep a copy of the records in a secure, off-site location such as a safe deposit box.
  • Insure collectibles properly -- Consult your independent insurance agent regarding the correct type and amount of insurance.
  • Stay current - Auction house results, museum exhibitions, and collectors clubs and societies can offer a wealth of information about the items in your collection. They can also provide information about the market for your collection. This can affect the insurance limits you should carry.

After following these tips you can enjoy your collection with fewer worries about whether it's protected properly.

About The Atlantic Companies

The Atlantic Companies, also known as Atlantic Mutual, is a group of diversified financial services companies with a Wall Street heritage dating back to 1842. The group is widely known for the Atlantic Master Plan insurance program, which is designed specifically for affluent individuals and sold through a select group of independent agents. The Atlantic Companies acts as a property-casualty insurer, manages claims for commercial insurance, and helps other business partners target profitable niches in the insurance marketplace. Additional information about The Atlantic Companies and the Atlantic Master Plan can be found at www.atlanticmasterplan.com.


Contact: Peter G. Scott
Corporate Marketing & Communications
973-408-6044