Safeguarding the priceless: protecting your high-value collectibles

For many, investing in fine art, classic cars, rare timepieces, and historic memorabilia is not just an investment, but a true passion for collectors.

Yet, as collections grow in value and significance, so too does the importance of ensuring you have adequate cover in place. A single incident could result in an irreplaceable loss – not just of value, but of emotional significance.

Protecting valuable assets through tailored insurance is an essential part of preserving your wealth. NFU Mutual’s Bespoke Home Insurance valuation partner Bonhams demonstrates through the regular sales of rare and high-value items. From vintage NASA photographs to limited edition watches – the value of such rare and unique items can fluctuate unpredictably.

Understanding the true value of collectibles

The value of collectible assets lies in more than just their market price. A vintage Aston Martin or a WWII-era Rolex represents more than a financial investment – it can also tell a story. This makes insuring such items uniquely different from covering standard home contents.

Items originally bought for modest sums may greatly change in worth. As an example, Bonhams recently auctioned several 1966 NASA photographs. One of which was Buzz Aldrin’s first-ever “space selfie” – which sold for £14,355. An item once worth pennies can now fetch a significant price. In instances such as these, staying on top of regular valuations is essential to avoid the costly risk of underinsurance.

Common risks to high-value assets

High-value assets face a variety of risks, including theft, transit-related damage, and natural disasters. However, a common thread underlying all these risks is underinsurance.

Underinsurance is a significant and growing concern for high-net-worth individuals in the UK. In a survey conducted by NFU Mutual in February 2024, it was found that less than a quarter of people know how much it would cost to repair or restore their property and possessions.

Real-world lessons from the auction world

Bonhams' recent auctions demonstrate why valuations and comprehensive insurance is crucial.

For instance, in September 2024 it was reported that a limited edition Bremont 18k white gold wristwatch, featuring a dial hand-painted by Rolling Stones guitarist Ronnie Wood, sold for £21,760 – more than triple its pre-sale estimate of £5,000 to £7,000. 

Another striking example from December 2024 highlights the dramatic potential for appreciation in the world of fine jewellery. A 2.27-carat pear-shaped diamond of light pink colour, set within a heart-shaped arrangement of cushion-shaped and old brilliant-cut diamonds, and framed by intricate scrolling openwork shoulders, sold for an astonishing £381,400 – more than seven times its pre-sale estimate of £50,000 - £70,000.

Most impressive is the story of a Famille rose 'dragon' vase uncovered during a probate valuation conducted by Bonhams in 2024. Originally valued at just £500 in 1990, Bonhams sold it for over €1.1M in December last year.

The surge in value for these items highlights the importance of regular insurance valuations to help ensure that valuable assets are adequately protected.

Tailored insurance solutions for collectors

High-value assets and collections often require more than a standard contents policy can offer. That's why at NFU Mutual, we work with trusted partners who can, for a fee, provide valuations of buildings and contents. Taking the time to thoroughly evaluate and document collections helps to ensure assets are properly valued and covered in the event of a loss.

It's essential to keep valuations up to date, it's recommended every 2-3 years.