Is It Possible to Insure Jewels, Cash or Art Objects?

It’s a known fact that cash, jewellery and art objects are usually excluded from the coverage under regular property insurance policies. However they can be insured subject to specific terms and conditions. That’s what Vitaliy Lebedovskiy, partner at BritMark, is sure of.

Why and how can cash be insured?

Normally even despite the evening collection there is always some money left in cash by the end of the day in order to keep the cash register running in the morning.  Since this money, like any other property located inside the store is exposed to the risk of theft, it can be insured provided it is kept inside the properly locked cash register.

The sum insured is usually equal to the maximum sum of money allowed to be left inside the cash register in accordance with company policies. It is higher for the retail stores and usually constitutes around UAH 30,000 for each location. Although some companies prefer to lock the daily proceeds in a safe with relocating them to the bank within the next few days. This kind of operations can also be covered though the sums insured are usually a bit higher in their case.  

Should the jewels be insured?

Conditions for insuring jewels differ greatly depending on whether or not an Insured is a legal entity. Legal entities operating in the market of jewellery trade can easily find insurance coverage for their jewels in stock. As to the natural entities, they usually have to overcome a number of difficulties to finally insure their precious belongings. First of all, they need to define the actual value of the jewels in question. This is where the receipts are of great help. The question is though, how many of you actually keep the receipts, especially if the jewels were bought long time ago let alone given as a present. Second, under the majority of insurance policies the jewels are covered only when they remain inside the safe. Unless you live in the USA, do not expect the insurance company to indemnify you for the diamond ear-ring or a ring lost in the sea.  Unfortunately, Ukrainian market does not currently have such insurance product to offer yet.

Can objects of art be insured?

In this case the hardest thing is to properly define the actual value of paintings, statues or other art objects. Why are some abstract impressionism paintings being sold for millions of dollars? What about the paintings created nowadays? Can a young Ukrainian artist insure his recent creation for a million or two? Expert appraisal is the only credible source of value confirmation. Regular receipts are of no use in this case, unfortunately, unless, of course, you are a proud owner of the painting bought in the nearby store for UAH 199.99.  Art objects which are of historical value make the insurance process even more complicated. So called antiques can be unbelievably expensive.  For them expert certification is a must.  Sometimes expert’s fee exceeds the value of the appraised object which makes insuring it not worth it at all. That’s why objects of art insurance is usually used by collectors, auction houses, private collections or museums.