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Chubb Staff Writer - From the Chubb Insurance website
August 15, 2008

Why Document?

Those who cherish what they collect tend to be vigilant in protecting it – up to a point. Just ask Peter Procrastinator. (This is a true story. Only the names have been changed to protect the guilty, and to avoid further embarrassment.) Gathering what he owned took years (buy a little here, inherit a little there) but like so many of us, Peter put off and put off documenting the contents of his home and his collections. My, how he used to love to walk his guests around the house, pointing out the artist of this and the glass-maker of that. “Peter, you have to list the contents” his insurance agent insisted (again) one day – too late – Peter’s home burned to the ground two nights later. Adding to the trauma of such a blow, Peter had to begin the task of trying to remember what was in the building. One thing Peter remembered only too well was that whatever documentation he did have – various receipts and random lists – was in the wooden filing drawers by his desk, now just a pile of ashes.

This is, of course, only one of tens of thousands of similar stories insurance agents across America encounter every year. At the time of writing there are 1,000 forest fires in California and flash floods from Missouri to Illinois, and almost every catastrophe is difficult if not impossible to prevent. Sure you can board up the doors and sandbag the yard from the ever-rising river. You can even jump in the car and head for the hills – if they’re not on fire too – but then what happens?

Options for Documentation

Documenting what you own can be achieved in many ways. In the past there were quill pens and large leather-bound ledgers. Today there are the far less elegant but equally useful yellow legal pads. There are walk-around video cameras, or easy-to-use digital cameras for close-up snapshots. One can manipulate an off-the-shelf software program such as Excel or File Maker Pro to approximate what is needed, or there are the $5,000 (and up) per user systems that are typically installed in major museums around the world. Any of these options is preferable to no documentation at all, and few of us need the bells and whistles of the very expensive systems. The most versatile way is to use a computer program designed for the middle ground, many of which can be purchased for under $200. One of these is Collectify, (Collector’s Edition, or Collectify Home Inventory) which is provided by Chubb to Signature clients, and which we will use throughout this article to illustrate the type of features these specialized products offer.

A screen from Collectify Collector’s Edition showing categories of objects in a hypothetical collection.

The primary benefit of computerized documentation of art and objects is that after the initial data entry, the software allows you to search for items by name, by date, or by other distinguishing characteristics (e.g., for all objects made of metal, all objects with a value over or under a certain value you specify, etc.). They also allow you, at any given moment, to sort your collection by artist, period, medium, or other criteria.

Whatever method you use, make sure a copy of this information is stored somewhere out of harm’s way (meaning off-premises) and that you remember where!! Record as much information as is known about each work. At a minimum include the type of object, materials and techniques, measurements, inscriptions, markings and distinguishing features, title, subject, date or period, and artist/maker. The J. Paul Getty Museum has initiated a system called Object ID, which is an international standard for describing cultural objects (www.object-id.com), and their website can be very useful.

An Excel spreadsheet used as a database. Columns represent fields of information with each row representing a complete record. The spreadsheet can later be sorted by any column, to group objects by type, materials, etc.

It’s not elegant, but Microsoft Excel and similar spreadsheet programs can also be called into service by using the columns to represent fields of information, and the rows to represent records.

Photographs are highly recommended. They are invaluable when checking the condition of an object that just came back from loan and, in the case of theft, being able to supply law enforcement officials with a photograph will also improve the chances of recovery. If you opt for a hand-written list for documentation, or a computer spreadsheet, your photos will have to be stored separately, but software designed for cataloging art collections allows you to attach multiple digital images, including scans of actual appraisals, to each object.

Data Entry, the Biggest Hurdle Simplified

Even when we have a significant financial stake and a strong interest in the items in our collection, it is likely that we view documentation as a chore, just like barring the doors and placing all those sandbags against the flood. History shows, however, that proper documentation is the perfect backup should the door barriers leak or the sandbags be breached. Only if you have recorded the contents can you really feel you did all you could do.

A data entry screen from Collectify Collector’s Edition. Data can be typed in, imported from other appropriate programs, or (for Chubb clients) downloaded from Chubb’s website.

There are some factors that can make data entry easier. If the information has ever been keyed into a computer in any way (e.g., as text, in a Word document, in an Excel spreadsheet, even in an email) there is a good chance that it doesn’t have to be re-entered; it can often be reformatted and then imported into a specialized software program. Be sure the software you choose offers technical support, and let them advise you on the possibilities for importing data. Easiest of all in the data entry stakes is the fact that Chubb’s clients can go to the Chubb website and automatically upload their insurance schedule directly into Collectify – there will be cleanup to do no doubt, but the significant data entry is done. From then on it is a much easier matter to enter a few items at a time as they are acquired.

Claims Facilitated

The contents of a home could be, in total, one of the most valuable assets any family has – never mind losing the years of family history, the old brown photos and the wonderful memories past. When Uncle George passes away and someone says “Remember that day we all went to country in his new Ford Edsel?” where will you go to find that photo you know you had? Complete protection of a collection and other contents must include accurate documentation. Whether it’s heirloom jewelry or antique furniture, an inventory is vital to valuing a collection. The inventory is indispensable, too, in properly insuring the contents.

According to William Turnbull, Senior Vice President of Chubb & Son, lost or damaged items are much more difficult to itemize and value after the fact, and the lack of pre-loss documentation or evaluation can sometimes delay the expedient processing of a claim. In one case, an insured made a claim for 40 pieces of 18th century Imari (Japanese porcelain) that had broken. The insured had a fine arts schedule totaling 158 items, insured for $565,049.00, but the 40 items being claimed were not on this schedule and the insured has no idea of the value. Experts had to be enlisted to evaluate the items after the fact. Five months later the claim was still ongoing, whereas it would have been processed much more expeditiously had there been an inventory of the items or, even better, if they had been added to the insurance schedule.

Disasters in the home are not the only situations where documentation matters. In another example, an insured filed a claim for missing earrings valued at $106,000. Unfortunately, she had never added them to her existing jewelry schedule. Originally, the insured reported that she had had them for six months, putting them outside the 90-day period that would constitute "newly acquired." Subsequently, it was claimed that though she had ordered them months prior, she did not actually receive them right away. The claim was delayed while the jeweler was interviewed to confirm the acquisition date, and though it was eventually possible to find coverage for them as “newly acquired,” the settlement was limited by the $50,000 limit for the specific category of newly acquired items. The insured was not fully paid for her loss as she would have been if the items had been scheduled.

There are no prizes for spotting the fact that the same last sentence appears in both these examples, but when it comes to investing the time in documenting your collection only you can decide. Will you spend the time? – ask one of the kids to do it for extra dollars – or just go buy some nails, and wood, and start bagging sand. With any luck whatever is knocking won’t get in your door.