As Art Collections Grow in Canada, XL Group Encourages Updating Appraisals to
Assure Best Value Protection
TORONTO, Jan. 23, 2013 /CNW/ - As more Canadians look to invest in art --
sending art prices skyrocketing -- collectors need to boost their risk
management efforts to assure the true value of their collections are properly
protected, says XL Group plc's Fine Art and Specie insurance team.
"Art is increasingly recognized as an asset class," says Anton Antonov, Fine
Art Underwriter for XL Group in Toronto. "In fact, according to research
published by Mei Moses and other art index providers, art outperformed other
equities in all periods between 2000 and 2011. Such performance was evident in
recent auctions in Vancouver and Calgary which fetched prices that were double
or triple of pre-auction estimates."
"Art losses from Superstorm Sandy offer a stark reminder that, especially as
art values climb, collectors need to make sure their artworks are properly
assessed in order to properly protect them. After all, a basic homeowner's
insurance policy typically only covers up to $6,000 in valuables which may
leave owned artwork largely uninsured." says Mr. Antonov. "Many serious
collectors already rely on all-risk fine art policies to protect their
collection from a wide-range of risks such as damage that could occur in
shipping or transporting a piece – if they loan an artwork to a museum, for
example -- or from a storm or smoke."
"The key to assuring the right cover and policy limits however rests on having
an up-to-date value assessment of the collection and that requires working
with a qualified professional art appraiser," says Mr. Antonov. "An appraisal
is used to determine the appropriate replacement value, most commonly at
retail, of an artwork or to determine a price for damage to a piece."
But Mr. Antonov acknowledges that appraisals are valuable for more than just
insurance coverage. They determine Fair Market Value to assist in:
-- Establishing equitable distribution of property that is jointly
owned by individuals or institutions.
-- Determining an art donor's income tax deduction if art is given
as a charitable donation.
-- Proving the value of an object in anticipation of a potential
sale or to determine the value of an object under consideration
-- Verifying preparation of estate tax returns, assisting in
estate planning or aiding in the distribution of assets.
-- Helping with asset management, loan collateral and related
financial and legal matters that can be tied to an art
Mr. Antonov recommends hiring an appraiser who is knowledgeable about the
object and class of your particular collection and certified by a nationally
recognized organization. To find the right one, he suggests asking the right
-- What are your qualifications and/or credentials? The Certified
Appraiser of Personal Property designation (CAPP) and the
International Society of Appraisers (ISA) are the most
recognized professional designations.
-- What is your experience in evaluating this particular item or
collection? Look for an appraiser who is a specialist in the
type of items being evaluated.
-- Do you have a vested interest in the items being appraised?
Appraisers should not be involved in the purchase or sale of an
item or similar items being evaluated, including any present or
prospective interest in the objects in the collection.
-- What are your costs? Costs can include a charge per item
appraised basis or a per-hour-of-work approach. Ask for a
written cost estimate, says Mr. Antonov.
-- What will you deliver at the end of the appraisal? Ask for a
sample of the final report or a description of what it will
"Protecting the value of artwork relies heavily on having a thorough
assessment every few years and working with qualified appraisers and insurers
to gain the best protection," notes Mr. Antonov,
About XL's Insurance Operations
XL Group plc's insurance companies offer property, casualty, professional and
specialty insurance products globally. Businesses that are moving the world
forward choose XL as their partner. To learn more, visit
www.xlgroup.com/insurance XL Group is the global brand used by XL Group plc's
In Canada, XL Group's Fine Art coverage is provided by the Canadian branch of
XL Insurance Company Limited.
About XL Group plc
XL Group plc, through its subsidiaries, is a global insurance and reinsurance
company providing property, casualty and specialty products to industrial,
commercial and professional firms, insurance companies and other enterprises
throughout the world. XL is the company clients look to for answers to their
most complex risks and to help move their world forward. Its principal offices
are located at No.1 Hatch Street Upper, 4(th) Floor, Dublin 2, Ireland. To
learn more, visit www.xlgroup.com
Christine Weirsky, Media Relations, +1-610-968-9395
SOURCE: XL Group
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-0- Jan/23/2013 18:01 GMT
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