How to properly insure your valuables

Insuring Your Valuables in Luxembourg

Luxembourg is known as a safe country. But have you ever thought about how your jewelry, valuables, or works of art are protected in the event of a disaster?

Insuring your valuable possessions is a critical matter. Are they adequately insured against theft or disasters such as fire or weather damage? What steps should you take to insure these items properly?

In this article, we will examine:

• the types of items requiring specific coverage
• how insurers in Luxembourg assess these items
• how to choose the best insurance policy based on your needs
• the steps to take to secure and preserve your valuables.

By following the advice of our insurance expert in Luxembourg, you’ll discover how to best insure your valuables and ensure their protection, while avoiding unpleasant surprises.

Which items require specific insurance?

What constitutes a valuable item for Luxembourg insurers?

In Luxembourg, the definition of valuables varies by insurer. However, it is generally based on the monetary value of the item. This definition is crucial, as it determines which items require specific insurance coverage.

Newcomers, in particular, may find it difficult to identify which items require specific insurance in the Luxembourg context. What is considered a valuable item in their country of origin may not meet local criteria.

Luxembourg insurers generally consider items exceeding a certain price threshold to be valuables:

• €400 and above for jewelry
• €1,800 and above for other items.

These amounts may vary from one insurer to another. For example, AXA Luxembourg might have a different threshold than Foyer or LALUX.

Expert tip:

“Start by making a detailed inventory of your belongings and identify those that exceed these thresholds. Don’t hesitate to consult your insurer to clarify the definitions specific to your policy. If you have doubts about the value of an item, it’s best to have it appraised by a professional. Remember that sentimental value is not taken into account in these appraisals; only market value counts for insurance purposes.”

Classic cars are covered by specific insurance policies. More information here.

How to identify and insure your valuables?

Valuables encompass a wide range of items, from traditional jewelry to specialized collections. In Luxembourg, with its international population and dynamic art market, the variety of valuables can be particularly diverse.

However, certain valuable items may be overlooked in the overall valuation, either because their value is not immediately apparent or because their owner is unaware of their value on the Luxembourg market.

Consider the following categories as valuable:

• Jewelry and precious stones
• Works of art (paintings, sculptures, photographs)
• Valuable musical instruments (e.g., a Stradivarius violin)
• High-end electronic devices (such as certain professional cameras)
• Various collections (stamps, coins, fine wines, classic cars)
• Luxury or antique furniture (antiques, designer furniture)
• Luxury watches
• Valuable rugs and tapestries
• Rare books or first editions

Expert tip:

“Make a comprehensive list of your valuable possessions, including those that might seem less obvious, such as stamp collections or family heirlooms. Don’t forget recently acquired items, especially if you’ve made significant purchases since arriving in Luxembourg.

Also consider items that may have appreciated in value over time, such as fine wines or certain collectible watches. If you have any doubts about the value of an item, consult an expert in the relevant field.”

What about your pet? Is it properly insured?

Why is appraising your valuable possessions crucial?

The value of valuable items can fluctuate over time, influenced by various factors such as market trends, increasing rarity, or changes in an artist’s reputation.

In Luxembourg, the art and collectibles market is particularly dynamic, which can quickly affect the value of certain assets.

Underinsurance can result in insufficient coverage in the event of a claim, leaving the owner with inadequate compensation. Conversely, overinsurance can lead to paying unnecessarily high insurance premiums.

It is therefore recommended that you:

1. Have your items regularly appraised by recognized experts. In Luxembourg, you can consult experts such as those from the Chamber of Experts in Art and Collectibles of the Grand Duchy of Luxembourg.
2. Keep all documentation regarding the item in question, including:
   • Certificates of authenticity
   • Purchase invoices
   • Detailed appraisal reports
   • High-resolution photographs of each item
   • History of ownership (provenance)
3. Update these appraisals every 3 to 5 years, or more frequently for items whose value is likely to change rapidly.

Expert tip:

"Update the appraisals of your valuable items every 3 to 5 years and keep a digital copy of all your authentication and appraisal documents in a secure cloud. For contemporary artworks, in particular, consider more frequent appraisals as their value can change rapidly. Don’t forget to document any restoration or repairs performed on your items, as this can affect their value. Finally, consider using collection management software to easily track the changing value of your assets over time."