THE BARATELLI INSTITUTE · Mentoring at Scale
FOR COLLECTORS, FAMILY-OFFICE PRINCIPALS, AND THE INSURANCE BROKERS PLACING THEIR COVERAGE

A $50K Rolex on a standard homeowner policy = $2,500 settlement.

Standard HO-3 policies cover personal property at depreciated actual-cash-value with a sublimit of $1,500-2,500 for jewelry, watches, and similar items. A specialty agreed-value policy (Chubb, Cincinnati, Hagerty, Berkley One, AIG Private Client) settles at full appraised value — for an extra $300-1,200/year on a $200K collection. The math is brutal in favor of specialty coverage above $5K of value. This tool runs the gap for your specific collection.

$2,500
Typical HO-3 jewelry sublimit
ACV
Standard policy settlement basis
FMV
Specialty agreed-value basis
0.3-1.5%
Specialty premium rate
YOUR COVERAGE
1
Your collection
2
Current coverage
3
Schedule design
4
Carrier & rate
5
Gap & recommendation
STAGE 1 OF 5

Your collection

Defaults model a $250K mixed collection (jewelry + watches + fine art) — typical FO-tier collector profile.

Total appraised market value across all categories. Used as the benchmark for schedule and blanket coverage limits.
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The single most-valuable item (e.g., a $75K Patek, a $50K painting). Drives per-item sublimit needs and whether a separate scheduled rider is required.
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Different categories have different theft, breakage, and market-volatility profiles. Jewelry and watches: highest theft risk → highest premium. Fine art: lower theft risk but higher fragility.
Carriers price differently by storage. Home display = highest premium. Bank vault / safe deposit = lowest. Climate-controlled professional = mid. Free-port (art) = lowest, but only for warehoused art.
The agreed-value vs. actual-cash-value distinction in one sentence. Agreed value: the carrier and you agree at the policy issue date what each item is worth, and that's what's paid in a total loss (no depreciation, no haggling). Actual cash value: the carrier pays whatever your item is "currently worth" minus depreciation, in their judgment, after the loss. Standard homeowner is ACV; specialty collectibles is agreed value. The gap can be 70-95% of FMV on items that have appreciated meaningfully since purchase.
STAGE 2 OF 5

Your current coverage

What you have now. Most collectors are under-covered without realizing it.

Standard HO-3 = homeowner policy with personal-property coverage subject to category sublimits. HO-3 + scheduled endorsement = your main policy plus a rider with specific items listed at agreed value. Standalone valuables policy = specialty carrier (Chubb / Cincinnati / Hagerty / Berkley One / AIG Private Client).
Standard HO-3 jewelry sublimit: typically $1,500-2,500. Watches usually fall under "jewelry" for sublimit purposes. Some carriers raise to $5,000-10,000 with endorsements; few go above without scheduled coverage.
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If you have a scheduled endorsement on your HO-3, total coverage on listed items. Schedules typically cover specific items at agreed value with no per-item sublimit beyond what's scheduled.
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Schedules need fresh appraisals every 3-5 years to reflect market value. Items appreciate; if you're insuring at 5-year-old appraised value and the item has doubled, you're underinsured by half.
The stale-appraisal trap most collectors fall into. A 2018 appraisal of a $30K Rolex Submariner is now appraising at $14-18K-actual but the SAME Submariner now sells for $13-15K (the post-2022 watch correction). Or the inverse: a 2018 appraisal of a Patek Nautilus at $50K is now selling for $130K. Either direction, you're misinsured. The fix is mechanical: appraise on a 3-year cycle for any item over $25K. Most carriers will reduce premium if you proactively re-appraise downward. None will pay above appraised value if it appreciated.
STAGE 3 OF 5

Schedule vs. blanket: design choice

The two main approaches for collectibles coverage. Each has tradeoffs.

Schedule: each item listed individually with appraised value. Pays agreed value on total loss; partial loss settled per-item. Best for high-value individual pieces. Blanket: single coverage limit covering all collectibles up to that total. Pays up to the limit but with per-item sublimit (often 25% of total). Best for moderately-valued large collections.
Schedules become administratively painful above ~30-50 items (each requiring its own appraisal). Blanket policies handle large collections elegantly but lose item-specific protection.
Blanket policies usually cap any single item at 25-50% of total coverage. So a $250K blanket with 25% sublimit covers any single loss up to $62,500 — even if the lost item was worth $80K. Set lower = more protection on individual items but premium goes up.
%
Most policies cover items at primary residence by default. Worldwide coverage adds 20-50% premium but is essential if items travel (concours, private viewings, lending to museums). For watches: worldwide coverage including loss-on-the-wrist is standard at specialty carriers.
STAGE 4 OF 5

Carrier & premium rate

Specialty carrier selection drives both rate and claim experience. They are not interchangeable.

Chubb / Berkley One / AIG: high-end, elite UHNW collector market, best claims service, premium ~0.4-1.2% of value. Cincinnati: strong for jewelry / watches, mid-premium. Hagerty: dominant for classic cars (their core market), competitive rates. State Farm Personal Articles: cheapest specialty option for jewelry but limited service. Lloyd's syndicates: bespoke for unusual items.
Typical rate by category: Watches/jewelry 0.50-1.50%. Fine art 0.10-0.20% (low theft risk). Wine 0.30-0.50%. Classic cars 0.30-0.60% (Hagerty). Coins/bullion 0.30-0.80%. Lower if vault-stored; higher if home-display.
%
Specialty collectibles policies often have $0 or low deductibles. Higher deductible = lower premium but you absorb more in small claims. $0 deductible typical at top-tier carriers; $500-2,500 at budget carriers.
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All-risk: covers any cause of loss not specifically excluded (theft, damage, mysterious disappearance for jewelry, breakage for art). Named-perils: covers only specific listed events (cheaper but worse). For collectibles, all-risk is the default and recommended.
STAGE 5 OF 5 · GAP & RECOMMENDATION

Insurance gap & recommendation

If a total loss happens today (current coverage)

Premium math (specialty agreed-value coverage)

Reserve metrics

Specialty carrier comparison

Recommendations

⚠ Lifecycle warning — policy lapse on death of the insured
Most collectibles policies are not transferable on death. When the named insured dies, the policy typically lapses by its own terms — not at renewal, but on the date of death. The executor has approximately 30-60 days (varies by carrier) to either transfer or replace coverage before the collection is uninsured. Specialty carriers (Chubb, Berkley One, AIG PCS, Cincinnati, Hagerty) all handle this differently; some auto-extend to estate, most don't.

Three steps to take now if the collection will pass through an estate:
  • Confirm with the carrier in writing whether the policy continues automatically, requires transfer, or lapses on death.
  • Name the executor or estate trust as an additional insured (if the carrier permits) so coverage continues during probate.
  • Build a 30-day transfer plan into the estate documents — heir contact info, broker contact info, current schedule of items.
PAIRS WITH
Treasure Asset TCO · Auction House Take-Rate · Estate Planning for Collectibles · Storage Decision Calculator
Insurance is one component of the carrying cost the TCO Calculator models. The Auction Take-Rate tool covers the sell-side friction. The Estate Planning for Collectibles tool covers the four exit paths. The Storage Decision tool runs the housing decision. Subscribe to the library →
TREASURE ASSETS GUIDE

Insurance is the boring part. Get it wrong and the loss exceeds the savings 1,000x.

Carrier selection by category · scheduled vs blanket trade-offs · the appraisal cadence · worldwide coverage carve-outs · claims-experience rankings · the underinsurance trap · and the post-loss documentation requirements that determine whether claims pay quickly or slowly.

Insurance terms vary materially by carrier, state, and individual underwriting. The model uses representative rates and conventions but does not separately compute: state-specific filed forms, mold / breakage / mysterious-disappearance carve-outs that vary by carrier, scheduled vs. unscheduled treatment of inherited / gifted items, business-pursuits exclusions for items used commercially (gallery loans, dealer activity), or transit / shipment coverage. Specialty carrier selection should be made through a knowledgeable broker who places similar collections regularly. This is not insurance advice. Engage a licensed broker before placing or modifying coverage.
WANT THE METHODOLOGY BEHIND THIS TOOL?
This calculator is one chapter of Treasure Assets Reference Guide.
The tool gives you the answer. The guide gives you the argument — the case law, the worked examples, the negotiation playbook, the cross-check tables, the exception cases. Read the chapter and you can defend your number to a board, a buyer, an examiner, or a counterparty.
The methodology behind this calculator is in Ch 11 Insurance of the reference guide.
See the Guide → Browse all 22 guides
PROFESSIONAL DISCLAIMER · PLEASE READ

Educational and informational purposes only. This calculator and any output it produces are intended solely for general educational and decision-support purposes. They do not constitute investment, tax, legal, accounting, appraisal, lending, insurance, or any other professional advice, and they do not create a fiduciary, attorney-client, accountant-client, or advisor-client relationship of any kind.

Estimates based on your inputs. All results are estimates derived from the data and assumptions you provide. Tax law, accounting standards, regulations, market conditions, and the specific facts of your situation can materially change the answer. The Baratelli Institute, its affiliates, and any co-branding professional make no warranty of accuracy, completeness, currency, or fitness for any particular purpose, and disclaim all liability for decisions made in reliance on the output.

Consult your own qualified professionals. Before acting on anything calculated here, consult your own attorney, CPA, financial advisor, appraiser, lender, or other qualified professional licensed in your jurisdiction who has reviewed your specific facts and applicable current law. The Baratelli Institute is a publisher of practitioner reference material. It is not a registered investment adviser, broker-dealer, law firm, accounting firm, appraisal firm, or lender.

Co-branded versions: If a professional advisor's name and contact information appear on this tool, that advisor has elected to make the tool available to clients as a courtesy. Inclusion of an advisor's name does not constitute the advisor's endorsement of any specific result, nor does it transfer professional responsibility for the underlying methodology to that advisor. The disclaimer above applies regardless of co-branding.