Written by
Reviewed by William Cooper
Follow us
There can be mixed emotions when you inherit a valuable item. On one hand, you may feel honoured and grateful to receive it. On the other, you may be feeling overwhelmed and working through grief following the loss of a loved one.
Whether it’s a diamond ring, luxury watch, antique or piece of artwork, if you’ve recently inherited something valuable, here are some of the questions we often hear from clients in similar situations.
1. How do I value an inherited item?
Our recommendation is to start with a professional valuation to find out what it’s really worth. Even if the item was given a probate valuation, it’s still worth getting a professional insurance valuation, as the two figures can vary considerably.
Probate valuations assess the item’s value on the open market at the date of death, while insurance valuations tend to reflect the cost of replacing it as-new today.
Online estimates can be useful for getting a rough indication of value, but they can be unreliable as they don’t take into account factors such as condition, provenance, rarity and demand.
Another thing to bear in mind is not to get the item repaired or cleaned before it’s been assessed as this can affect its value.
2. Should I sell an inherited heirloom or keep it?
Before you make any decisions, it’s worth considering both the financial and sentimental value of the item. Not just to you, but also to anyone else who may have a personal connection to it.
For example, family heirlooms can mean something to multiple people, so having a conversation with those individuals before you sell can help avoid any misunderstandings and make sure everyone is comfortable with the decision.
It’s also worth considering whether the item’s value could increase over time. Holding on to it for a few years could mean it becomes more valuable, especially if the item becomes rarer or demand increases.
3. Are inherited items covered by home insurance?
Many people assume that inherited items such as jewellery, watches or pieces of art are covered by their home insurance when they receive them. However, that’s not always the case. Most policies have single-item limits. If an inherited possession exceeds that limit, you’ll usually need to inform your insurer so they can confirm whether it should be specified separately or covered by a specialist policy.
Items that tend to come into this category include engagement rings, designer jewellery, luxury watches, fine art and antiques, silverware and collections such a coins, whisky or stamps.
Even if an individual item doesn’t require specialist insurance, it could increase the overall value of your contents and affect the level of cover you need.
4. What paperwork should I keep for inherited valuables?
Keeping copies of the relevant paperwork can be invaluable if you ever need to prove your ownership or make a claim. You might consider creating a file that contains documents like:
- Valuation reports
- Receipts
- Certificates of authenticity
- Photographs of the item
- Provenance documents
As well as having a paper copy, take photographs of the documents and store a digital copy online too. Over time, documents like receipts can fade so having digital copies to hand may be beneficial.
5. How should I store inherited jewellery, antiques and artwork?
The correct storage depends on the item itself, and your insurer will guide you on any specific conditions that need to be met. Generally, it’s recommended that you:
- Use a safe for any smaller valuables
- Consider a safe deposit box for particularly valuable items
- Protect items from direct sunlight
- Monitor humidity levels where appropriate
- Review your home security on a regular basis
Speak to Stanhope
If you’ve recently inherited a valuable item, Stanhope can help you review your insurance arrangements and make sure your possessions are properly protected. Speak to a member of our team on 01730 777620.
Get a quote now
Quickfire FAQs
-
What should I do when I inherit jewellery?
Have it professionally valued, keep all supporting documentation, and review your insurance to ensure it’s adequately protected.
-
What happens when you inherit valuable items?
You should establish the value, decide whether or not to keep the items or sell them, review your insurance arrangements and store them securely
-
Do I need a valuation for inherited antiques?
Yes. Probate values often differ from insurance replacement values, so getting a professional valuation once you receive the item(s) is recommended.
-
Can inherited items affect my home insurance?
Yes. Valuable inherited possessions can increase your overall contents value and may exceed existing policy limits.
-
Do inherited watches need specialist insurance?
Depending on their value, luxury watches may need to be specified separately on your policy or covered by specialist insurance.
Written by Matthew Ashton
I started working in the insurance industry in 2004. Four years later, I left to focus on theological studies, working as a youth worker and then as a ministry director in Seattle, USA. When returning to the UK, I had an opportunity to work for the late Andrew Marchington. I joined his firm as a sales advisor when it had around ten staff members. Within three years, I was Head of Ops with a staff team of over 30 people. After a chance encounter in 2019 with Rachel Living and Will Cooper, I co-started Stanhope to build a high-value home, luxury watch, and jewellery broker synonymous with trust. I love being with Donna, my wife, and four kids when not working, cramming in the odd row, or run when I can. I am fortunate to love what I do and consider it a blessing to grow the Stanhope brand.