Private collection policy

A Paris collector insures his apartment under a homeowners policy with 100,000 euros of contents, of which valuables are capped at 30%. He hangs a gouache bought for 85,000 euros at auction. On the day of the burglary, the home policy will pay him 30,000 euros at best, and the adjuster will still argue over the value. A private collection policy takes these items out of the home contract. It is written in two ways. On a schedule, each object carries an agreed value, set from an invoice, an appraisal or an estimate, and paid as such on a total loss. On a blanket basis, the collection is covered up to a limit, often with a per-item limit above which the piece has to be declared. Agreed value only holds if it tracks the market: policies provide for periodic revaluation, most often every three to five years, and some for automatic indexing or cover for new acquisitions for a few weeks. Objects on the move are handled separately. A loan to a museum, a deposit with a conservator or a consignment for sale goes nail to nail, sometimes under the borrower's policy. Common exclusions cover wear and tear, vermin, inherent vice and damage occurring during restoration, which the conservator insures on his own side. The underwriter looks at the address, the alarm, the safe for jewelry and the share of the collection that travels. Not to be confused with homeowners insurance, which covers the contents of a home with caps on valuables, nor with the art dealer's policy, which insures stock held for sale.