Clutter or Valuable? Collectible Stuff - Risk Management Issues
1. C l u t t e r o r Va l u a b l e ?
COLLECTIBLE STUFF:
R I S K M AN A G E M E N T I S S U E S
By Scott M. Haskins, Art Conservator, Preservation Expert, Author of “Save Your Stuff”
Does clutter bother you? What is junk and is it worth anything? How
do you know of its it authentic or worth anything? Of course, the
clutter bug has a million stories packed away in the memory about
people throwing away treasures… and, in fact, in my line of work I
hear about AND SEE these stories all the time.
Here's a true story that will make you gasp: I was on the phone recently
with Scot Levitt, the head of the painting department for Bonham and
Butterfields Auction House and he told me a story that he said I could tell
you. The story came up because we were talking about the successful sale
the evening before and how a painting had sold for twice its $175K
estimate. I mentioned to him that is must feel great for him when he helps
people to sell their items so successfully and that he must be awash in
bottles of wine etc given in gratitude. He mentioned that this never
happens and he almost never hears again from the sellers even if the sale
is great for them. “Well”, I said, “I can see that because most people don’t
live their lives with an attitude of gratitude.”
Then he said that he agreed but had an exception to that comment:
Several months ago a “picker” (a name in the art trade for people who
scour the garage sales etc for paintings of value, then resell them to the
auction house or to dealers for a quick profit) found a painting in a Pacific
2. Palisades garage sale (a rich residential community by Santa Monica, CA).
The lady watching over her sale was selling a poorly framed item she
thought was a poster. He mentioned to her he thought it was a real
painting. She blew him off and treated him with indifference so he bought it
for the $15 she was asking.
He drove the painting immediately to see Scot Levitt (about 30 minutes)
where it was confirmed that it was a painting. It sold a few months later for
$375,000.00!!! He was so thankful that he bought Scot an entire case of a
fine wine, a highly unusual gesture. But what he did next made me gasp…
he drove back to the lady’s house where the garage sale had been and he
surprised her with a check for $100,000!!! Follow me on the Facebook
page where I shared this story; CLICK ON THIS LINK
As you might imagine, just anybody’s opinion about what you have
and what it is worth will NOT be sufficient, appropriate nor probably
accurate information. This is the appeal behind the Antiques
Roadshow.
Here is a personal story a client of mine told me
about being involved with the Antiques Roadshow.
“Participating in the whole process and affair is quite
interesting. It is pretty well organized, in spite of all
the people. It takes about 2 hours, start to finish, of
standing in lines. It might be disappointing to you in
that they may not have an appraiser who is
specialized in your item after you’ve gone to all the
trouble to show up. I took a painting in to be
evaluated and the appraiser actually thought the portrait of the
Russian Tsar was of English Prince Edward. Amazing. The appraiser
did not really “get” the idea that the value of the painting lies in the
history of this person, a painting actually “of the moment” of the
Russian Revolution. She kept reiterating that the “condition” of the
painting was not good (it had been bayoneted, shot, ripped from its
frame, rolled up and smuggled to safety). So, actually the whole
experience was pretty disappointing for me, also because the
Antiques Roadshow is severely prejudiced and really emphasizes
American pieces.”
3. The value of an antique or work of art, of a collectible or item of
memorabilia can have an impact on people for lots of reasons, as you
might guess: family history items document a family’s heritage and
legacy and therefore contain strong emotional value that probably
cannot be insured; Memorabilia items document our lives, loves and
experiences like our favorite team or movies or movie stars or cars.
The memorabilia sales industry is all about “investing” in those
memories. And, of course, investing in vintage art and antiques has
been a popular asset class for millennia. Many items, both collectible
and memorabilia, may have important historical value and may be of
interest to other people in a locale, region or nation. Collectibles can
be an investment or something that “holds” our memory.
So, given that an item may have tremendous emotional power,
significant historical importance or a solid financial value… what is
something worth? Consider these questions about the items for which
you are the “curator.” 1. Can your treasured item be scheduled on
an insurance claim in case of damage or loss? Is it insurable? (a
painting, yes… vintage family photos, no?) 2. If the building were
going up in smoke, would you be heartbroken about loosing which of
your items? 3. If your item is damaged, will it be worth restoring?
Would you restore it even if the financial value was less than the
appraised value because it has emotional or historical value? 4. Is
your item valuable to others you know (are you a caretaker)? 5. Are
you aware that the financial valuation (appraisal) will be different in
the case of insurance coverage, probate, donation, auction sale or
gallery sale? 6. Will you get a different evaluation from a garage sale
appraiser than from a professional specialist who knows or can
research the history, provenance and specialized regional sales for
the item? The professionalism and expertise of the appraiser can
make a HUGE difference in your expectations from sales, from
settling IRS issues, settling estate issues and settling insurance
claims.
So, if I ask you what are you doing to protect your investment in
collectibles and treasured family history items, would you have a
blank look on your face? The above questions bring up a number of
risk management questions that should be extremely important to
you!
4. Let’s talk specifically about paintings
For many centuries, maybe millennia, paintings have served as the
best representation that demonstrates the quality, prestige, style, and
class of their owners and patrons. Why else do you think notable
hotelier, Steve Wynn, shares his magnificent collections with his
guests? It doesn’t take many of these valuable paintings to be worth
even more than a resort or casino! By proxy, these works of art allow
the owner to share in the famous reputation of the artist and connect
with the works’ cultural ties. Keeping track of all this history, value,
importance, and prestige is called the “provenance.” If you collect
valuable art, you know you must keep the documentation that
establishes this history and background of the artwork safe (see
hurricane story below). Even if your artwork isn’t an important work by
Picasso, you still are interested in whose hands your artwork has
passed throughout the ages. Its easy to see why so many people
value these works of art and have an emotional and deeply rooted
historical connection to them.
That reminds me of another similar sad story: A woman called me
one day quite upset, but wouldn’t talk about the damage to her family
portraits until I went to her office in the San Francisco Bay Area. She
had broken up with her boyfriend, and in a fit of rage he had taken a
knife and viciously attacked her three family portraits in her office,
shredding them to pieces (could this happen from a disgruntled
employee?!). By the way, we made them look perfect again—but
what a disaster!
In other words, for many, having paintings is not just a way to
decorate the office. Whatever type of artwork you have in your office,
its important to assess your needs and understanding the disaster
preparation tasks for these types of items: It should be a major part of
your emergency preparedness plan if you have paintings.
Where do you keep the records of your collection?
A Florida client of one of my associates is a major corporate collector.
They had an insurance policy, but when a hurricane ripped off the
roof and planted a 150-foot yacht on the front lawn, many of his
5. paintings were blown away, never to be seen again. Those that
remained were soaked with sea water and in truly bad shape.
When he made his claim for his fine art losses, he was asked to
prove the quality of the art and provide documentation to prove the
condition of each work of art being claimed previous to the hurricane.
These are two important points that can make a huge difference in
the value. Unfortunately, his supporting documentation was also
destroyed in the storm. A battle ensued with the insurance company
that was never resolved satisfactorily for the corporation. This
entanglement could have been avoided even though the damage by
the hurricane could not have, perhaps.
Paintings, more than any other art form, convey to your clients,
public, and competitors an image of status and quality of your
business or company. Your art collection tells others you are
educated and knowledgeable, and if you collect the right kind of art it
will represent that you are at the “top of the food chain” in affluence
and savoir faire. It’s been this way for thousands of years.
No matter the value of the artwork, be it Old Master or contemporary,
an oil or on paper behind glass, you can see how these items make
up the image and contribute forcefully to the company culture. Don’t
take lightly the importance of protecting, preserving and the risk
management of these collectibles and memorabilia.
Take an Inventory There are lots of reasons to have art besides just
owning a financial asset. Here is an assessment checklist to help jog
your memory about what you have. Check off what you think you
have, and keep in mind there may be some overlap. * Oil
paintings * Acrylic paintings, Ancestors’ portraits, Inherited
heirlooms, Family portraits * Founders’ portraits * Portraits of
company officials, high mucky-mucks * Purely decorative artwork
(little or no financial value) * Art collected for the love of art,
indifferent of value or status * Investment-quality paintings * Artwork
that represents accomplishments, projects * Gifts from clients,
dignitaries, sponsors * Artwork that represents your company’s soul,
like philanthropic work, causes you sponsor, important travel
experiences * Your children’s art or paintings done by other family
6. members * Souvenirs, items bought while traveling *Other people’s
property (artwork) in your care—your responsibility *Inherited assets
from mergers or settlements
This quick video shows some family portraits we’ve had in the lab
lately. Click on this link. Subscribe to my YouTube Channel for updates when
I post a new video.
Also to be considered important to protect and preserve, following list
of items you may need in case of an insurance claim (and therefore in
an effort to protect your financial holdings). You will want to consider
the following documentation for each and every work of art: • A highquality photograph to document the quality • Receipts for acquisition
and expenses • A report narrating the condition, previous
restorations, etc. • An appraisal. For an accurate financial
assessment of some of these items, it makes sense to contact a
reputable art appraiser. For more information contact
http://www.faclappraisals.com, Mr. Richard Holgate, International
Society of Appraisers, (805) 895-5121, jrholgate@ yahoo.com. • A
copy of the type of insurance coverage • Specific historical papers,
documentation of exhibitions, copies of publications about the
artwork • Remember to keep a copy of all this documentation in a
second location, preferably outside your area.
Scott M. Haskins is a professional painting conservator. Questions?
Call 805 564 3438 or faclartdoc@gmail.com
Follow me on Facebook and I’ll accept you as a friend.
