Blog
The Joys and Perils of Collecting Art
Abigail R. Esman, who frequently writes about the joys and perils of art collecting in her Forbes column, recently published several articles that are especially relevant to art collectors, adjusters and insurance carriers. In one article Esman lists the top ten art sales of 2011, showing that Modern and Contemporary pieces are currently some of the most desirable and highly valued artworks on the market today. It’s worth checking out the list to see how the market fared in 2011 versus previous years. In that same article and a follow on post, Esman highlights the top art frauds and scandals of 2011. She offers advice that is instructive for collectors, adjusters and carriers on how to protect yourself from being a victim of fraud, which Esman notes happens more frequently in the art world than you might think.
Luxury item sales were up this holiday season
So you got some great holiday gifts? Well, you weren’t alone. A recent article in the Boston Globe showed holiday spending on high end luxury gifts was up at retailers such as Saks Fifth Avenue, Neiman Marcus and Nordstrom. Saks reported a 9.3 percent increase in sales compared with 2010, and Nordstrom rose by 5.6 percent. The majority of upscale retailers reported strong sales in jewelry, designer purses and clothing. Other high end items frequently gifted during the holiday season include furs, watches, fine art and collector vintages for the wine connoisseur.
Celebrities and the Body Parts they’ve Insured
How do you put a price on a body part – someone’s hair, teeth, legs? Believe it or not, these are valid questions for a brand spokesperson whose livelihood depends on a particular physical attribute that helps sell or promote a product or service.
Sometimes even Superman needs to be rescued
Good news for possibly the world’s biggest Superman fan. In early September it was reported that a vast collection of Superman memorabilia had been stolen by a man posing to be the owner’s friend. Lucky for him, police recovered his 1,800 piece collection and put the thief in jail.
The Case of the 20th Century Copy
The Situation
EnservioSelect was recently asked to review a claim for a stolen painting with a stated value of $185,000. The painting was a depiction of a religious scene dating to the 17th century. The claim amount was based upon an appraisal from a prominent west coast art gallery. The art gallery staff completing the appraisal had the additional credentials associated with their signature of an “Associate Member of the Appraisers Association of America”.
“Passionate Investing” on the Rise, but Many Lack Adequate Coverage
This September ACE Private Risk Services released the results of an impressive survey they conducted in partnership with Financial Dynamics. The “Survey on Passionate Investing by Wealthy Households” reveals insights into financially successful individuals and families and their investments in fine art, wine, jewelry, collectibles and other unique items. According to the survey, jewelry, fine art, wine, furniture/antiques, and silver/crystal/China are the top categories most often collected by the wealthy.
Lack of Provenance Causes Stir in L.A. Art World
A centuries old Rembrandt drawing is snatched from an art exhibition at the Ritz Carlton Marina del Rey Hotel in Los Angeles. For reasons unknown, the thieves abandon the drawing at a church across town, and law enforcement officials recover it. Great outcome and end of story, right?One-Off Approach Doesn’t Cut it for Fine Arts and Collectible Claims
Claims Journal recently published a fascinating article examining the challenges adjusters and carriers face when dealing with claims for damage to fine art and collectibles. The author provides numerous examples of the importance of applying a methodology to each step in the assessment and decision making process. How do you determine pre-versus post loss issues? What factors come into play when deciding whether to repair or replace a damaged work of fine art or a one-of-a-kind collectible? Who are the experts that you’ll need to call on for each step of the process? These are just a few of the many issues we handle on a daily basis in helping our customers reach the most accurate and cost effective settlements for hard to value items.
Specialty Insurance Coverage a Major Growth Area for Carriers
Forrester Research analyst Ellen Carney recently published a report called “Courting the Affluent US Insurance Buyer Online” that leading insurance carriers should take note of. Carney introduces her report by outlining the market opportunity for carriers. Despite the lingering effects of the US economic recession, the affluent segment of the US population (defined in the report as households with at least $1 million in investible assets) is beginning to open up their wallets again for luxury goods and fine arts. Carney also cites a recent study from the Deloitte Center for Financial Services that projects the number of millionaire households in the US to double in the next decade, reaching 20.6 million affluent households by 2020.
Specialty Contents Claims are More the Rule than the Exception
I have a monthly column on PropertyCasualty360 called “Contents Claims Solved” in which I share lessons learned and amusing anecdotes about some of the more challenging and unusual contents claims EnservioSelect handles for claims adjustors and carriers. I enjoy the column because it provides a glimpse of what we do e
