Insurance Claims for Rare and High Value Items

What Policyholders Should Know

One morning, Mr. Rajiv Mehta, a passionate collector of fine art, woke up to his worst nightmare. The centrepiece of his collection—a 19th-century oil painting valued at over ₹50 lakhs—had been stolen from his home. Although he had insured the painting under his home insurance policy, the claim process became an endless tug-of-war with his insurer full of insurance claim-related issues.

Unfortunately, Rajiv’s story is not unique. Claims for rare and high-value items are often challenging, leaving policyholders confused, overwhelmed, and their claims short-settled.

Let us find the key takeaways from his story and learn how to safeguard those collections of rare artefacts, inherited family heirlooms or fine art that hold both financial and emotional value.

1. Why Are Rare and High-Value Items So Difficult to Insure?

Rare and high-value items—like jewelry, art, heirlooms, or collectibles—carry intrinsic and market-dependent value, making them tricky for insurers to cover.

Key insurance claim-related issues Include:

● Valuation Disputes: Insurers often use outdated appraisals or arbitrary methods to undervalue claims.
● Lack of Specialized Coverage: Standard policies rarely cover the unique risks associated with high-value items, like theft, accidental damage, or market depreciation.
● Proof of Ownership: For inherited or undocumented items, establishing ownership and value can be a daunting task.

Without taking the right precautions, policyholders may face unnecessary financial loss and emotional distress during claims.

2. How to Secure Proper Coverage for Your Valuable Assets

● Store Safely

Before anything, comes precaution, because potential neglect in securely storing the items can become grounds for claim rejections or claim rejection-related issues. Invest in secure storage options, like safes, bank lockers, or climate-controlled units, especially for items like paintings or antique documents.

● Read the Fine Print

Examine your policy for:

A. Exclusions: Are accidental damages or market depreciation covered?
B. Deductibles: How much will you pay out of pocket?
C. Coverage Caps: What’s the maximum amount your insurer will pay?

● Update Appraisals Regularly

The value of rare items can fluctuate. A professional appraisal not only ensures accurate coverage but also helps avoid disputes during claims. Aim to update appraisals every 2-3 years.

● Riders and Add-ons

Standard policies often set limits on high-value items. Adding a rider or Add-on to your policy—provides tailored coverage for specific items like jewelry, art, or collectibles.

3. What Happens When Insurers Push Back?

Like Rajiv, many policyholders encounter resistance from insurers. Denials, low settlements, or endless delays can turn an already stressful situation into a nightmare.

If your claim hits a roadblock:

● Request a Review: Provide updated documentation and expert reports to support your claim.
● File a Complaint About Insurance Company: The Insurance Ombudsman or Subject Matter Experts can help resolve disputes for policyholders.
● Seek Professional Help: Experts like Bima Seva Kendra can negotiate with insurers, identify loopholes, and ensure fair compensation for your losses. How? Let us find out.

4. Why Expertise Matters in High-Value Claims

Filing claims for high-value items is an intricate process that demands expertise. And that is exactly what Bima Seva Kendra brings to the table with over 100 years of cumulative experience and 20 Cr+ claims under consideration and a team of experts with a mission to bring ‘SEVA’ to your fingertips.

Experts can:

● Identify gaps in your coverage and recommend improvements.
● Expedite claims by handling documentation and insurer communication.
● Fight back against mis-selling of insurance policy or unfair settlements.

Conclusion

Whether it’s a family heirloom, a rare collectible, or an investment in fine art, your treasures deserve the best protection. Here’s what you can do today:

● Evaluate Your Coverage: Does your policy adequately protect your valuable items?
● Maintain Proper Documentation: Start creating a record of ownership, appraisals, and photographs.
● Seek Professional Advice: Don’t wait for a claim rejection to realize the importance of expert guidance.

In a world of uncertainties, being proactive is your best defense. Remember, it’s not just about recovering monetary value—it’s about preserving the stories, memories, and investments that matter most to you.