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As Art Collections Grow in Canada, XL Group Encourages Updating Appraisals to Assure Best Value Protection

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
        for purchase.
    --  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
        collection.

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 
questions:
    --  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
        contain.

"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 
insurance subsidiaries.

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

http://www.xlgroup.com/insurance

http://www.xlgroup.com

SOURCE: XL Group

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2013/23/c8103.html

CO: XL Group
ST: Ontario
NI: ENT ART FIN INS 

-0- Jan/23/2013 18:01 GMT


 
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