How to properly insure your valuables

Which items require specific insurance?

What is considered a valuable item by Luxembourg insurers?

In Luxembourg, the definition of valuable items varies depending on the 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 valuable. This threshold is often set at around €400 for jewelry and €1,800 for other items. It is important to note that these amounts may vary from one insurer to another. For example, AXA Luxembourg may have a different threshold than Foyer or LALUX.

Expert advice: " Start by making a detailed inventory of your possessions and identify those that exceed these thresholds. Don't hesitate to consult your insurer to clarify the specific definitions in your policy. If you have any doubts about the value of an item, it is best to have it appraised by a professional. Remember that sentimental value is not taken into account in these valuations; only the market value counts for insurance purposes."

Classic cars benefit from specific insurance policies. More information here.

How to identify and insure your valuable items?

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, some valuable items may be overlooked in the overall estimate, either because their value is not immediately obvious 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 items (such as certain professional cameras)
• Various collections (stamps, coins, fine wines, vintage cars)
• Luxury or antique furniture (antiques, designer furniture)
• Luxury watches
• Valuable carpets and tapestries
• Rare books or first editions

Expert advice: "Make a comprehensive list of your valuable possessions, including those that may seem less obvious, such as stamp collections or family antiques. Don't forget recently acquired items, especially if you have made significant purchases since arriving in Luxembourg. Also consider items that may have increased 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 it crucial to have your valuable possessions appraised?

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 items.

Underestimating the value of your possessions can result in insufficient coverage in the event of a claim, leaving the owner with inadequate compensation. Conversely, overestimating the value 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 call on experts such as those from the Chamber of Experts in Art and Collectibles of the Grand Duchy of Luxembourg.
2. Keep all documentation relating to the item in question, including:
   • Certificates of authenticity
   • Purchase invoices
   • Detailed appraisal reports
   • High-resolution photographs of each item
   • Ownership history (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 appraisal of your valuables 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. Be sure to document any restoration or repair work done on your items, as this can affect their value. Finally, consider using collection management software to easily track the value of your assets over time."

Choosing the right insurance for your valuables

Is your home insurance sufficient for your valuables?

In Luxembourg, most home insurance policies offer basic coverage for valuables. However , this coverage is often limited and may not be sufficient for large collections or high-value items, or even for your home itself.

Many expatriates often discover too late that their standard home insurance does not adequately cover their valuables. This can lead to undercompensation in the event of a claim.

Carefully review your home insurance policy. Coverage for all valuables is generally limited to a maximum of 40% of the sum insured for furniture, but not exceeding 20% for jewelry. It is crucial to identify these limits and determine whether they are sufficient for your situation.

Expert advice: " Make a detailed inventory of your valuables and compare their total value with the limits of your home insurance. If the coverage seems insufficient, consider additional options or specialized insurance. Keep in mind that certain items, such as valuable musical instruments or rare collections, may require a specific declaration."

What are the specialized insurance options for high-value items?

The Luxembourg insurance market offers specialized options for high-value items, tailored to the needs of a wealthy international clientele.

Choosing between an extended warranty or specialized insurance can be complex, especially for newcomers who are unfamiliar with the local insurance system.

Consider the following options:

1. "Valuables" package: Offered by insurers such as LALUX, this package provides extended coverage for valuable items, including accidental damage and theft, even outside the home.
2. Fine Art Insurance: For large collections or valuable works of art, specialized insurance policies such as those offered by certain Luxembourg insurers in partnership with international companies can provide more comprehensive protection.

Expert advice: " For large collections or valuable works of art, specialized Fine Art insurance generally offers better protection and more specialized expertise services. These policies may include worldwide coverage, restoration options by experts, and compensation based on the agreed value rather than the market value."

How to choose the best insurance policy for your valuables?

Insurance policies for valuables in Luxembourg vary considerably in terms of coverage and conditions, reflecting the diversity of the country's international clientele.

Comparing different offers can be complex, especially for expatriates who are unfamiliar with the specifics of the Luxembourg market.

Consider the following criteria when choosing your insurance:

• Scope of coverage (theft, accidental damage, loss)
• Compensation limits
• Conditions of compensation (replacement value, agreed value, market value)
• Geographical coverage (at home, while traveling, abroad)
• Security and storage requirements
• Additional services (appraisal, restoration)

Expert advice: " Choose policies that offer indemnification at agreed value rather than market value, especially for items whose value is likely to increase over time. Also make sure that coverage extends to travel abroad, which is particularly important for international residents of Luxembourg."