Underinsurance is rife among art and antique lovers, warned fine art specialist Hiscox and private client broker Aon.
They said a survey showed that many household collectors of art and antiques were failing to get up-to-date valuations on their home contents, leaving them underinsured.
The survey was carried out at the 2004 BADA Antiques & Fine Art Fair. It revealed that homeowners were spending an increased amount on collecting art, antiques and valuables yet were failing to check whether the items were adequately covered by their home and contents insurance.
Despite spending significant amounts on art and other valuables, 80% of those surveyed failed to have adequate art and antiques cover.
Four out of five collectors insured their art and antiques on a standard home insurance policy, most of which exclude art and antiques as standard, with only 20% opting for specialist home contents cover.
The survey also found that one in ten respondents failed to have any insurance cover at all for their valuables, said the companies.
Hiscox head of fine art and private client division, Charles Dupplin, said: “These figures make for worrying reading and reaffirm a persistent trend of underinsurance in the affluent household market.
“Hiscox estimates that two in three affluent homes are significantly underinsured, most by around 40 per cent. Without regular valuations and adequate cover, many homeowners could face a big shock when it comes to making a claim.”
He added that collectors should also check the exclusions on their insurance policies. “For instance, most standard insurance policies will only offer accidental damage cover for certain items, often excluding ornaments and antiques, furniture or art.
“Any collector, big or small, would be wise to check the small print of their home contents cover and consider upgrading to a specialist policy, offering wider cover for all items, including art and antiques as standard."
