Who's best at restoring your masterpiece?

It's taken for granted the claims service within the high net worth sector is pukka. Well-to-dos with this cover aren't forced to hang on the phone trying to get through to their insurer's claims department or, heaven forbid, negotiate with an offshore call centre.

If this elite policyholder wants cash, he will get it rather than bulk-buy replacement goods. If a disaster occurs, he can expect the cleaners who sort out the mess to be a cut above average and any restoration work to be carried out by master craftspeople with no expense spared.

Supply chain

But, have even the high net worth insurers been swayed by the cost-saving attractions of supply chain management?

Georgine Thorburn, managing director of niche disaster recovery company, Document SOS, says even the high net worth insurers are "looking to screw their suppliers down on price".

Thorburn, a fine art specialist who has a degree in paper conservation, says much of her firm's work is now coming direct. "People with treasured items are increasingly looking to self insure. We provide a membership service where we'll be at a home within hours to salvage possessions and carry out specialist restoration services. I often hear insurers are not providing sufficiently expert levels of service - and this includes those in high net worth." Thorburn says some high net worth insurers have used damage restoration companies that operate as franchises, which she says leads to a lack of control. She asks: "Are they doing adequate security checks on the people who are sent round?"

And, she argues, loss adjusters are often unable to recommend more expensive specialists. "They are scared to stick their necks out. A lot of the older and wiser adjusters are no longer in the business and those who remain are only interested in keeping the costs down."

Thorburn's other concern is that restoration, which may be preferred to a replacement in the case of an antique, for example, may not be handled by experts.

But, is there any justification in her claims? No, according to John Sims, European head of personal insurance for Chubb. "We use Revival as our preferred damage restoration firm. But, this is nothing to do with cost; it is because they provide a good service. We have no problem bringing in other specialists if necessary. I would be the first to hear if there was a problem with our claims service," he says.

Hiscox has links with two damage restoration firms, The Revival Company and Tadley Services. Property claims manager Peter McLoughlin comments: "We undertook a review and found these firms were more specialist in bespoke work. There is an issue of cost control, but this is important for all our policyholders paying their premiums. We do due diligence and we are also very aware that our brokers will question it if the service standards are not high."

McLoughlin says both Revival and Tadley and, indeed, Hiscox's loss adjusters can bring in experts if the claim warrants it.

"There is no shame in this and our suppliers know it. In Scotland, a recent claim resulted in a library of books which were worth around £500,000 suffering water damage. These are now being restored by the University of Dundee's Library Conservation Unit, which is a leader in its field within Europe.

Expensive option

In terms of cost, this was probably one of the most expensive options, but it will result in the best restoration and the recommendation came from the adjuster."

There are arguments for and against whether franchised damage restoration companies are better or worse than those with employed staff

The Revival Company, favoured by Chubb and Hiscox, is currently advertising franchise opportunities.

Paul Mastin, marketing manager for franchise operation Rainbow International, says those working for his firm focus on restoration.

"Not every franchise operation has such expertise in house but we do have experts without our network, such as those who specialise in leather care and French polishing. We also encourage training in such skills.

He adds that Rainbow has links with the British Antique Furniture Restoration Association if more advanced services are required."

But, according to Mike Burrows, business development manager for rival company Munters: "We have a fully-employed workforce, because we believe this means better control and consistency. This is a competitive market and insurers are looking to manage costs more than in the past.

"We don't set out to be the cheapest in the market but we do look to offer a more specialist service if necessary and have been called out to Royal households, for example."

Burrows says it is vital insurers do bring in experts, particularly when it is a high net worth claim. "You might get a valuable rug or piece of art, for example, where over-drying by non specialists can make matters worse and lead to a very unhappy policyholder." He says in some cases, Munters will link up with other experts, including Harwell Drying.

Kathryn McKenzie, Harwell's marketing manager says: "We do a considerable amount of work for insurers, but also for the British Library, the Bodleian and Public Records Office.

Speedy instruction

McKenzie says "What's important if restoration is to be effective is speed. If the insurer instructs us, say, within 48 hours, then there will be a much better chance the work will be effective. This could be for preserving works of art, but often, a high net worth policyholder may be equally concerned about their photographs."

Adjusters no doubt retain some influence, but, they may be under pressure to save costs. Andrew Dear, director of technical services at Ashworth Mairs, believes insurers must be told if a damage restoration company is not up to the job.

"There have been times when the company sent is like a square peg in a round hole. The company is set up for general household cleaning and is unable to handle valuable goods damaged by fire or flood. We've seen botched jobs and I would question if even those with preferred supplier status all are providing value."

He is aware of claims where the damage restoration company has added in extra charges, such as for dry cleaning, hiking up costs. "We received a bill for over £6,000 for smoke-damaged clothes, which was scandalous.

"I would now recommend in a similar case the policyholder be given cash to purchase new clothes. When a company acts like this, it was undoubtedly better when adjusters had more say in who was selected. Instead, we have to do more troubleshooting if things go wrong."

Their work may be less than glamorous on occasion, but there is no doubt that plenty of companies want a slice of the damage restoration action - claims mean money. Insurers have the difficult balancing act, meanwhile, of ensuring the customer is satisfied and keeping a tight rein on costs.

In high net worth, they face the most scrutiny and time will tell if they are achieving this.