Summer is the prime time for natural catastrophes in the U.S. In 2012, big forest fires in Colorado and on the West Coast made headlines in advance of the Atlantic hurricane season.
With changing climate patterns and population increases in catastrophe-prone areas, homeowners are increasingly susceptible to devastating property losses. Wealthy collectors of fine art, sculpture, wine, jewelry and other unique objects-particularly those with homes in disaster-prone areas-face the risk of losing irreplaceable items.
Earthquakes, wildfires, hurricanes and floods are unavoidable, but owners can be proactive in protecting their collections or at least minimizing potential loss, according to Katja Zigerlig, vice president for fine arts and wine insurance for the Private Client Group division of Chartis. Zigerlig recently explained to an audience of Chartis brokers in New York City how they could help their wealthy clients prevent the loss of valuable collections, prepare for and respond to a disaster, and recover from it.
"The home itself is the first line of defense," Zigerlig said. Mitigation services can clear brush surrounding the house and spray Phos-Chek, a fire retardant, on the property to protect against fire. Hurricane shutters, impact-resistant glass, wind-resistant tiles and shut-off valves for gas, water and electricity can be installed, drains cleared and windows caulked.
The property must also be accessible to responders. For a gated home when no one is home, a Knox-Box Rapid Entry System can provide nondestructive access to firefighters, Zigerlig said.
The collections themselves should be inventoried and well documented with photos and videos, and their condition and location recorded. Receipts for expensive collectibles should be saved and professional appraisals obtained.
With enough warning, some valuables can be moved to a safe location in advance of a natural catastrophe. Other items can be made secure in the home. Carpets and smaller items can be moved to an upper floor in case of flooding, and should never be stored in the basement. Statues that could topple and break during an earthquake can be protected with base isolators. Paintings can be hung securely and miscellaneous smaller items and wine collections secured on shelves, Zigerlig said.
Large sculptures displayed outdoors probably can't be relocated, but parts that could be torn off by wind, which then become projectiles, can be removed and the main body covered to protect it against water damage.
Arrangements should be in place for recovery after a natural disaster to stabilize the climate to dry the wet spaces, and to assess and tend to water-damaged sculptures.
The planning should be handled almost as if it were an estate plan, according to Zigerlig. "Put the plan in writing," she said.
This includes how the property can be accessed, a floor plan showing fire extinguishers and utility shutoffs, a priority list for removal of valuables, the location of emergency supplies and location of commercial storage facilities. A team should be trained to implement the plan.