Trust structures can hold a wide range of assets, and those assets do not necessarily remain the same from one year to the next.
Property may be acquired or renovated. Art and collections can change. Values move. Vehicles, marine assets or other significant possessions may enter or leave a structure.
For trustees and fiduciary professionals in Guernsey and Jersey, these changes can be a useful trigger to review the insurance arrangements surrounding the assets concerned.
Changes to the assets
An insurance review should be considered when there is a material change to what is held.
For example, has a property undergone substantial work? Has a significant artwork or collection been acquired? Are existing valuations still appropriate? Have assets been moved between locations or are they being used differently?
The insurance requirements for a property will be different from those for a fine art collection, yacht or high-value vehicle. Where a structure contains several types of asset, the overall arrangements can become more complex.
Changes in value
Even when the assets themselves remain unchanged, their values may not.
Regular valuations can be particularly important for property, jewellery, fine art, collectables and other assets where values can move materially over time.
This is not simply about assets increasing in value. An up-to-date valuation gives trustees and their advisers better information on which to base insurance decisions.
Make insurance part of the review process
Insurance can easily become something considered at renewal rather than when the underlying assets change.
Including insurance within the wider process when assets are acquired, disposed of, renovated, relocated or revalued can help ensure the arrangements remain appropriate.
CIB’s Commercial team works with trust portfolios and fiduciary professionals, bringing together insurance expertise across a range of asset types. For structures with changing or varied assets, an insurance review can provide a useful check that the cover in place still reflects what is actually being protected.