How to Insure High-Value Assets Like Art, Jewelry, and Real Estate in 2024

In 2024, protecting your high-value assets—whether it’s a priceless painting, a rare piece of jewelry, or luxury real estate—requires specialized insurance plans that go beyond standard policies. These valuable items often represent a significant portion of your wealth, and insuring them correctly is essential to preserving their value in the event of theft, damage, or loss.

In this guide, we’ll explore the best ways to insure high-value assets like art, jewelry, and real estate in 2024, ensuring your investments remain safe and secure.

1. Why Insuring High-Value Assets is Different

High-value assets typically require customized coverage that a standard homeowner’s or renter’s insurance policy may not provide. Most traditional policies have limits on the amount they’ll cover for specific categories like fine art or jewelry. Without tailored insurance, you may find yourself underinsured if something happens to your valuable items.

• Custom Coverage: Specialized insurance for high-value assets offers coverage limits that match the true worth of your items, rather than default policy caps.
• Protection from Unique Risks: High-value assets may be subject to risks like theft, fire, flood, or accidental damage, and insuring them requires addressing these unique vulnerabilities.

2. Insuring Fine Art

Whether you own a priceless painting, sculptures, or a photography collection, fine art requires specific insurance policies designed for rare and unique items. Art insurance takes into account the item’s provenance, its market value, and its risk profile.

• Choose a Specialty Insurer: Look for insurers who specialize in art, such as AXA Art or Chubb, as they offer policies that cater specifically to art collectors.
• Get Regular Appraisals: Art values can fluctuate, so it’s important to have your collection appraised regularly (every 2–3 years) to ensure your policy reflects its current market value.
• Transit Coverage: If you frequently loan your art to galleries or move it between homes, ensure your policy covers transit risks, which may not be included in standard art insurance.

Pro Tip: Some art policies also offer coverage for restoration, allowing you to recover costs if your piece needs professional care after being damaged.

3. Insuring High-Value Jewelry

Jewelry insurance requires a specialized approach, as these items are often small, portable, and particularly vulnerable to theft or damage. A tailored jewelry insurance policy offers comprehensive coverage that standard homeowners’ policies may lack.

• Itemized Coverage: Rather than relying on blanket coverage, get a policy that specifically itemizes each piece of jewelry. This ensures that each piece is insured for its full value.
• Worldwide Coverage: If you frequently travel with your jewelry, make sure your policy provides worldwide protection in case of theft, loss, or damage abroad.
• No Deductible Option: Some insurers, such as Jewelers Mutual, offer policies with no deductible, which can be a great advantage if you’re insuring particularly high-value pieces.

Pro Tip: Store valuable jewelry in a home safe or bank vault to reduce the risk of theft, and make sure your insurance provider is aware of these safety measures, as it can lower your premium.

4. Insuring Luxury Real Estate

Whether it’s a beachfront property, a historic estate, or a penthouse in a major city, luxury real estate requires a different level of insurance than typical homes. Insuring high-end real estate takes into account factors such as property size, location, and unique architectural features.

• High-Value Home Insurance: Standard homeowners’ insurance policies often have coverage limits that don’t reflect the replacement cost of luxury properties. A high-value home policy will provide coverage that can fully rebuild or restore your property in the event of damage or disaster.
• Extended Replacement Cost: Choose a policy that offers extended replacement cost coverage, which accounts for fluctuating construction costs. This ensures you won’t be left with out-of-pocket expenses if rebuilding becomes more expensive than anticipated.
• Protection for Additional Structures: Ensure your policy covers other structures on your property, like guest houses, garages, or pools, as these often need separate coverage.

Pro Tip: Work with an insurer experienced in high-net-worth properties, such as Pure Insurance or AIG Private Client Group, to ensure every aspect of your estate is covered, from the landscaping to the wine cellar.

5. Understanding Deductibles and Coverage Limits

When insuring high-value assets, pay close attention to deductibles and coverage limits to ensure your policy fully protects you.

• Low or No Deductible: For extremely valuable assets like fine art or rare jewelry, consider a low or no deductible option. This ensures that you won’t have to pay out of pocket if a claim needs to be filed.
• Agreed Value Policies: An agreed value policy is especially important for high-value assets, as it pre-determines the amount you will receive if the item is lost or damaged, preventing disputes over market value.

6. Consider Adding Personal Liability Insurance

Owning high-value assets increases your personal liability risk, especially if you entertain frequently or have valuable items on display in your home. Adding personal liability insurance to your policy can protect you in case someone is injured on your property or if your actions result in damage to someone else’s property.

• Umbrella Insurance: Umbrella policies offer additional liability coverage above the limits of your existing home or auto insurance, making them ideal for high-net-worth individuals who own valuable assets.
• Coverage for Defamation or Libel: Some high-value insurance policies offer coverage for personal risks, such as defamation, which can be valuable for individuals in the public eye.

Pro Tip: Many insurers offer bundled policies for high-value assets, homes, and personal liability, which can simplify your coverage and potentially lower your overall premium.

7. Protecting Your Assets from Natural Disasters

In 2024, climate change continues to increase the risk of natural disasters such as floods, wildfires, and hurricanes. Standard insurance policies may not cover these risks, so it’s essential to add extra protection.

• Flood Insurance: If your high-value real estate is located in a flood zone, make sure to get flood insurance, as most standard policies do not cover flood damage.
• Wildfire Coverage: For homes in wildfire-prone areas, specialized insurance policies may be necessary. Check with your insurer about options for proactive wildfire protection, such as fire-resistant building materials or landscaping.
• Earthquake Insurance: For luxury properties in areas prone to earthquakes, consider adding earthquake insurance, which is often an add-on rather than a standard inclusion in homeowners’ policies.

8. Consulting with Experts

Insuring high-value assets is a complex process that benefits from expert advice. Work with insurance brokers who specialize in insuring luxury items to make sure you’re fully protected.

• Seek Independent Brokers: An independent broker can compare policies from multiple insurers and offer tailored advice for your specific needs.
• Annual Reviews: Schedule annual reviews with your broker or insurer to adjust your coverage as needed. Whether it’s a new home renovation, a growing art collection, or the acquisition of rare jewelry, your insurance policy should reflect these changes.

Pro Tip: Many high-value insurance policies offer perks like access to risk management experts, security consultations, and emergency services in case of loss or damage.

Final Thoughts: Insuring Your High-Value Assets in 2024

As your wealth grows, so does the importance of protecting the assets you’ve worked hard to acquire. Insuring high-value items like fine art, luxury jewelry, and real estate requires more than just standard policies—it requires expert advice, tailored coverage, and a proactive approach to risk management.