Tarina Vlok, the general manager at Elite Risk Acceptances - a subsidiary of Old Mutual Insure that provides bespoke short-term insurance solutions to high-net-worth individuals - says they have a panel of specialists that’s able to conduct valuations of these weird and wonderful items.
“The benefit of getting experts to conduct this type of value assessment is that they have no emotional connection to the bespoke item or collection, and can therefore assess the items from a purely replacement-value perspective,” she says, adding that, often, these collections cannot be replaced, in which case the replacement value has to be agreed upon.
Over time, the appreciation value of most of these items is closely related to the exchange rate.
“Professional valuators consider this volatility when assessing the value. However, any addition to a collection or modification to a bespoke item will clearly have an impact beyond exchange rate fluctuations, and it is therefore recommended that these valuations are done every two years to ensure that your collection is correctly valued. If there has been no addition, the original valuator will probably do a desktop re-valuation based on rarity, supply and demand, exchange rate and exclusivity. With new additions, they prefer to do a new valuation,” she says.