What a fine art and antiques claims expert costs

What the fee actually pays for

A loss assessor or public adjuster working on a fine art claim does far more than fill in a form. The fee covers a reading of the policy, including any agreed value schedule, depreciation cover and pairs and sets clause; inspection of the damaged objects; coordination of conservators and valuers; preparation of the claim file with provenance and comparables; negotiation with the insurer’s loss adjuster; and follow-up until payment.

Art claims are often slower than ordinary contents claims because restoration estimates take time and market evidence must be gathered from auction records and dealers. That workload explains why fees on smaller art claims can look high in percentage terms.

• Policy and schedule analysis, including limits and exclusions
• On-site inspection and condition recording
• Instruction and supervision of conservators and valuers
• Market research on comparable sales and provenance
• Drafting and presenting the claim, then negotiating it
• Monitoring restoration and final settlement

Indicative percentage bands by claim value

There is no official tariff for policyholder’s experts in the English-speaking markets. The table below shows an indicative order of magnitude observed on the market, expressed in pounds or US dollars, for a percentage fee calculated on the settled claim. It is not a legal scale; actual rates are freely negotiated and depend on the complexity of the file.

As a rule, the percentage falls as the value of the loss rises, because the core work does not grow in proportion to the amount at stake. High-value collection losses are frequently priced individually.

Indicative amounts, to be checked with each expert.

Ways of calculating the fee

Read the engagement letter closely, because the same headline rate can produce very different invoices depending on the base.

Percentage of the settlement or of the uplift

The most common arrangement is a percentage of the total amount paid by the insurer. Some experts instead charge a percentage of the additional amount obtained above the insurer’s initial offer, often at a higher rate. This aligns the fee with the value added, but requires the starting offer to be recorded clearly in writing before the expert intervenes.

In the United States, public adjuster fees are regulated by state law and some states set caps, for example Florida and Texas. Check the rules of your state before signing a contract.

Fixed fees, hourly rates and minimums

For a single damaged painting or a simple restoration, a fixed fee or an hourly rate may be fairer than a percentage. Valuers and conservators commonly charge by the hour, by the day or per object, and their reports are often billed separately from the claims expert’s fee. Many firms also apply a minimum fee so that small claims remain viable for them.

Watch for extras: travel, storage of damaged items, specialist transport, photography, laboratory analysis and attendance at meetings. UK and Irish fees are generally subject to VAT, Australian fees to GST and Canadian fees to GST or HST, so check whether figures are quoted before or after tax.

Can the policy pay for your expert?

The equivalent of a professional fees guarantee exists in some policies under names such as claims preparation costs or professional fees cover. It is more common in commercial and high-net-worth policies than in standard home contents cover, which often excludes the cost of a loss assessor or public adjuster altogether.

Where such cover exists, it is usually capped, may require the insurer’s prior consent and may only pay for preparing the claim rather than negotiating it. The fees of valuers and conservators instructed by the insurer are normally paid by the insurer; reports you commission yourself may or may not be reimbursed. Ask the question in writing before you appoint anyone.

Small, medium and large losses: worked examples

Small claim: a damaged eighteenth-century print with a settlement of 8,000. At 12 %, a percentage fee would be 960 plus tax, which may be similar to or below a minimum fee. A fixed fee or a direct claim supported by a good restorer’s estimate may be more economical.

Medium claim: smoke damage to several paintings and antique furniture settled at 120,000. At around 6 %, the fee is about 7,200 plus tax. The expert’s value lies in securing depreciation alongside restoration costs and challenging low comparables.

Large claim: a fire affecting a collection settled at 2,000,000. At 2.5 %, the fee is around 50,000 plus tax. The percentage is modest, but the amount is significant, so a tailored proposal with a cap or a sliding scale is worth negotiating. These figures are purely illustrative.

Comparing firms and reading the engagement letter

The cheapest proposal is not always the best. Look for experience with fine art claims, relationships with recognised conservators and valuers, and clear reporting. A firm that has handled restoration and depreciation disputes before can be worth a higher fee.

The engagement letter should state the fee basis, the rate, any minimum, what happens if you withdraw, how third-party specialist costs are handled, when payment is due and whether tax is included. Be wary of anyone promising a guaranteed settlement figure: the outcome always depends on the policy, the evidence and the insurer.

• Ask for the fee basis in writing before any work begins
• Clarify whether specialist reports are included or extra
• Check cancellation terms and any cooling-off period
• Request examples of similar claims handled

A clear fee structure agreed upfront is the best protection against disputes with your own expert. expertdassure.com recommends comparing at least two written proposals before appointing anyone on an art or antiques claim.