There’s Gold in Them Thar Hills. And Art. And Condos.
3rd September 2015
Gone are the days where owning art and various residences was just about an appreciation of culture and a love of travel. Rather, in today’s market, these items are quickly becoming more than passions–they’re rapidly becoming the go-to instrument for storing wealth. But unlike more traditional asset classes, think gold or other precious metals, these investments often invite increased financial risk that many high-net-worth individuals overlook.
Before a high-net-worth individual hangs their Picasso in their London flat or their Warhol in their New York penthouse, it’s important to recognise that these tangible investments are susceptible to damage or destruction at the hands of fire, Mother Nature or a freak accident. Thus, it’s critical that both are appraised on a regular basis to ensure an appropriate level of coverage is in place. Similarly, many homeowners and art collectors fail to recognise that their insurance policy is not coordinated on a global basis, leaving them exposed if an international property or piece art displayed overseas is damaged. To protect their investments–and passions–owners should work with a broker who understands the risks associated with these new asset classes. Failure to do so could leave homeowners and collectors exposed to significant out-of-pocket costs.