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A Valuation for Your Insurance Purposes

 

  • All of our valuations for the purposes of Insurance are undertaken by an RICS qualified valuer and comply with RICS Valuation – Global Standards.  We are able to provide specialist valuations for antiques, fine art, jewellery, and other items of high value.  We do not provide whole house contents valuations for replacement purposes or provide Insurance valuations for general personal property.

 

  • If you are reading this you are probably considering obtaining a valuation to pass on to your Insurance company that will satisfy their requirements and enable you to claim, should you need to, the full value of the item if it is lost, damaged or stolen.   However, the value you require is based on a number of considerations in two areas that we would encourage you to consider.  These are listed below.  Only when you have answered these questions can we begin to produce a valuation for Insurance purposes that will meet yours needs and the needs of your Insurance company.

 

(a) What are the terms of your Insurance Policy?

ie:

To what financial level are items included within your general household policy?

At what financial level are items required to be valued separately and does this differ depending on the type of item (ie. furniture/pictures/silver etc)?

In the event of a claim how would your Insurance Company reimburse you?

If you have items over a certain value are you required to have a safe or alarm system?

Is it worth having certain items of high value on a different policy?

How will adding valuable items affect your premium?

Does the item’s emotional value outweigh it’s physical value?

 

(b) How would you choose to replace the item?

ie:

New for Old

Replacement within the Secondhand Retail Market Place

Replacement within the Auction Market Place

Have the item Remade by a Specialist

 

  • Please contact us to discuss your Insurance valuation to enable us to tailor it to meet all of your wishes, listing replacement values at a level you are happy with.

 

  • Formal valuations are charged at an hourly rate calculated by the time it takes to inspect the items.  A fixed fee can be agreed in advance for single items and we are happy to discuss our fee structure and accommodate your needs if the situation is unusual or deems a different approach be necessary.  Please contact us to obtain a copy of our current fee structure or discuss your situation.

 

  • Indemnity’ is like for like; two objects are rarely identical. Markets referred to typically comprise Retail replacement costs, or probable Auction price. Auction prices will usually include additional sums to cover likely buyer’s commissions, taxes and other costs.

 

  • Retail values are subjective and will vary, sometimes significantly, from retailer to retailer. Where possible the valuer will take into account the retail habits of the client. This will also affect potential values.

 

  • ‘New for Old’ is the likely cost of replacing a used item with a new one of similar quality and type in the Retail Market.

 

  • Where an old item is unique or where an object is handmade, a value may be allowed for re-manufacture on a ‘facsimile’ or ‘replica’ basis.

 

  • In order to obtain valuations for Insurance the valuer may use varying calculations involving Open Market Values, which are generally calculated at mid-auction estimate, but does not take into consideration commissions or other potential expenses often associated with selling at auction.  In some instances however where this method is not suitable to ascertain the Open Market Value other calculation methods are required using reasonable research and due diligence. The RICS (Royal Institution of Chartered Surveyors) define market value as ‘The estimated amount for which an asset or liability should exchange on the valuation date between a willing seller in an arm’s length transaction after proper marketing and where the parties each acted knowledgeably, prudently and without compulsion’ (RICS, VS3.2, 2012, p.30).  Market Value in accordance with Section 160 of The Inheritance Tax Act 1984 and Section 272 of The Capital gains Tax Act 1992 is defined as: ‘The price which the property might reasonably be expected to fetch if sold in the open market at that time, but that price must not be assumed to be reduced on the grounds that the whole property is to be placed on the open market at one and the same time’ (RICS, UKGN3.2, 2012, p.268).  Where such calculations are used they will be clearly stated in the valuation report.

 

  • The basis, or bases, of valuation for Insurance purposes will be clearly stated in the valuation report

 

  • The valuation report is principally based upon the valuer’s opinion on the date of the inspection, taking into account the conditions of the examination.  An Valuation for Insurance purposes is not a guarantee of the price payable or receivable in respect of an item.

 

  • The Valuation Report is the copyright of Philippa H Deeley Ltd and will be provided for the stated purposes and for the sole use of the named Client.   It will be confidential to the Client and their professional advisers. The valuer accepts responsibility to the client alone that the report will be prepared with the skill, care and diligence reasonably to be expected of a competent valuer, but accepts no responsibility whatsoever to any person other than the client themselves. Any such person relies upon the report at their own risk.

 

  • Neither the whole nor any part of the report or any reference to it may be included in any published document, circular or statement nor published in any way without the valuer’s written approval of the form and context in which it may appear.

 

  • Client details and valuation reports will not be released to any third parties without the client’s express permission except as required by law.

 

  • Values will be ascertained by observing market trends, utilising the valuer’s professional experience, making note of previous sale records, bullion and other relevant prices, and on occasion taking into consideration the opinions of other parties.

 

  • It is the instructing client’s responsibility to disclose all property to be valued, and to ensure that it is included in the valuation report.

 

  • Where items are not available for inspection and the valuer therefore relies on photographs and or information supplied by the client, this will be stated in the valuation report.  The valuer shall, unless otherwise expressly agreed, rely upon information provided to them by the client or the client’s legal or other professional advisers. It is the responsibility of the client or the client’s legal or other professional advisers to ensure this information is accurate and advise the valuer if it is not.

 

  • Description detail will vary to be appropriate to the values of the personal property (chattels) being valued.

 

  • Even where competent to do so, the valuer will not normally undertake condition reports on personal property (chattels) to establish faults, alterations, or restoration. However, where problems of condition are obvious and affect the value they will be noted in the valuation report.

 

  • Where personal property (chattels) are not new an assumption will be made that items are in reasonable condition, unless specifically stated in the valuation report to the contrary.

 

  • For more information on our Terms of Engagement please visit our Terms of Business page.