How to Protect Luxury Collectibles | Cowan

The art of gift-giving takes centre stage, especially for individuals who seek to present extraordinary and meaningful gifts. Luxury items and collectables have seen a remarkable increase in value over the past few years, making them cherished possessions and significant investments. At Cowan Private Client, we understand the importance of safeguarding these valuable assets to ensure they remain protected for generations.

The rising value of luxury collectibles

Recent statistics highlight a growing trend among luxury goods consumers willing to pay premium prices despite inflation. This trend has led to a notable increase in the value of items you may already own:

• Pre-owned luxury watches: The demand for these timeless pieces has surged, with the market expected to grow by 9.2% from 2024 to 2030.¹ This surge is driven by a combination of factors, including the craftsmanship, heritage, and exclusivity associated with luxury watches. Collectors and enthusiasts alike are drawn to the intricate details and the stories behind each piece, making them highly sought after.
• Luxury handbags: This market has experienced significant growth over the past few years, becoming a staple in the world of high-end fashion. Iconic brands and limited-edition releases have fueled this growth, with handbags often seen as both a fashion statement and an intelligent investment. The allure of owning a piece of fashion history continues to drive demand.
• Wine: As a top-performing collectible, wine delivered average returns of 13% in 2022,² making it a lucrative investment. A growing appreciation for fine vintages and the unique characteristics of different regions and producers buoy the wine market. Collectors often seek out rare bottles that can appreciate in value over time, adding a layer of sophistication to their collections.
• Fine art and diamonds: Sales in these categories are climbing, with art appreciating at rapid rates, reflecting their enduring appeal. The art market, in particular, has seen a resurgence, with contemporary pieces fetching record prices at auctions. Diamonds, known for their timeless beauty and rarity, symbolize luxury and elegance.

Overall, the global personal luxury goods market is expected to grow at a compound annual growth rate of 4.04% from 2024 to 2029, reaching a revenue of USD 473.90 billion in 2024,³ underscoring the importance of preserving their value through proper coverage.

Protecting your cherished collections

At Cowan Private Client, we recognize that your luxury collectibles are more than just possessions; they reflect your passions and achievements. Many of our clients proactively review their existing coverage and purchase additional insurance to protect their valuable collections. Our team of experts is dedicated to providing tailored insurance solutions that offer peace of mind and comprehensive protection against loss, damage, or theft.

Customized insurance solutions

Our approach to protecting your luxury collectibles is as unique as the items themselves. We offer a range of options designed to meet your specific needs, including:

• Automatic insurance coverage: Newly acquired items are automatically covered, ensuring immediate protection. This feature is particularly beneficial when new acquisitions are expected during the holiday season. Whether it’s a new piece of jewelry or a rare collectible, you can rest assured that it is protected from the moment it becomes part of your collection.
• Agreed-upon value: We establish an agreed-upon value amount in advance, providing clarity and certainty in the event of a claim. This approach eliminates the guesswork and potential disputes over the value of your items, ensuring you receive fair compensation if the need arises.
• Current appraisals and flexible policies: Our policies are designed to address market fluctuations, ensuring your coverage remains up-to-date. Regular appraisals help maintain accurate valuations, reflecting the current market conditions and the true worth of your collectibles.
• Worldwide coverage: Enjoy peace of mind with coverage options that extend globally, with no deductible. Whether your items are at home, in transit, or on display in another country, our comprehensive coverage ensures they are protected wherever they are.

Experience the Cowan Private Client difference

With years of experience in serving high-net-worth clients, Cowan Private Client is uniquely positioned to offer unparalleled expertise and personalized service. Our team understands the nuances of luxury collectibles and is committed to helping you protect what you are passionate about. Whether adding to your collection or seeking to safeguard existing treasures, we are here to assist you every step of the way.

Our clients benefit from our deep understanding of the luxury market and our ability to tailor insurance solutions to their needs. We take the time to get to know you and your collection, ensuring that every item is protected. Our proactive approach includes regular reviews of your coverage to account for new acquisitions and changes in market value.

The importance of proper documentation

One of the critical aspects of protecting your luxury collectibles is proper documentation. Detailed records, including photographs, receipts, and appraisals, are essential in the event of a claim. At Cowan Private Client, we assist our clients in maintaining thorough documentation, making the claims process smoother and more efficient.

We also recommend periodic reviews of your collection to ensure that all items are accounted for and adequately valued. This proactive approach helps prevent any gaps in coverage and ensures that your insurance policy accurately reflects the current value of your collection.

The role of appraisals

Appraisals play a crucial role in determining the value of your luxury collectibles. Our network of trusted appraisers provides accurate and up-to-date valuations, giving you confidence in the coverage of your items. Regular appraisals are particularly important for items that may appreciate over time, such as fine art, jewelry, and rare collectibles.

Working with experienced appraisers ensures that your items are valued correctly, providing a solid foundation for your insurance coverage. This attention to detail is part of our commitment to delivering exceptional service and protection for our clients.

Contact us today!

Give the gift of protection and peace of mind. Contact the Cowan Private Client team at cowanprivateclient@cowangroup.ca  to learn more about our comprehensive insurance solutions for luxury collectibles. Let us help you ensure that your cherished items remain safe and secure, allowing you to enjoy them for years.

At Cowan Private Client, we are dedicated to protecting what you are passionate about. Our expertise, personalized service, and commitment to excellence set us apart in the industry. Trust us to safeguard your valuable collections so you can focus on enjoying the beauty and significance of your luxury items.

Sources

1. Grand View Research (December 2023) Pre-owned Luxury Watches Market To Reach $45.01 Billion By 2030. Retrieved from URL. ↵
2. Rare Wine Invest (December 2022) 22.5 %: How wine investment performed in 2022. Retrieved from URL. ↵
3. Statistica (December 2024) Luxury Goods Worldwide. Retrieved from URL. ↵