Disclaimer. Collectalia is not a legal, tax or insurance advice site. The information on this page is general and based on French legislation in force as of 09/11/2026: it may change, does not necessarily apply outside France and does not take your situation into account. Always have it checked by a notary, a lawyer, an accountant or your insurer before acting on it.
The essentials
- Agreed value is settled with the insurer before the loss, on the basis of a valuation; declared value will have to be proved afterwards.
- Too low a value can reduce the compensation (proportional rule): reassess regularly.
- For jewellery and works of art, the insurance estimate also serves as a floor in an estate.
Agreed value, declared value: two different approaches
To insure a work of art, a valuable piece of jewellery or a watch, the question is not only “how much?” but “who sets the value, and when?”. That is the whole difference between agreed value and declared value, two notions found in extended home insurance policies as well as in specialist policies.
Agreed value
Agreed value is set by mutual agreement between the policyholder and the insurer, before any loss, generally on the basis of a valuation. It is written into the policy, item by item. Its major advantage: in the event of a total loss (theft, destruction), this value does not have to be proved again. The debate over value took place when the policy was taken out, not after the loss.
Declared value
Declared value is stated by the policyholder themselves, without prior validation. It is used to calculate the premium and the sum insured, but it does not bind the insurer on the real value: after a loss, the policyholder will have to justify that the item was indeed worth that amount, with invoices, valuations, photos and certificates. Without supporting documents, the discussion can be long (see jewellery theft without an invoice).
| Agreed value | Declared value | |
|---|---|---|
| Who sets it? | The policyholder and the insurer, by mutual agreement | The policyholder alone |
| When? | Before any loss | When taking out the policy, without verification |
| On what basis? | Generally, a valuation | The policyholder’s estimate |
| After a total loss | No need to prove the value again | The value must be justified |
| Point to watch | Reassess to keep pace with the market | Keep all supporting documents |
Insurance value of a work of art: how to determine it
The insurance value of a work of art should reflect what it would cost to replace it or what it is worth on the market, depending on what the policy provides. Several sources exist:
- A valuation by a specialist expert or an auction house: the reference for an agreed value.
- The recent purchase price, backed by an invoice: useful, but it ages quickly.
- Comparable sale results: works by the same artist, in the same technique, format and period.
Whatever the source, keep a record: date, author of the estimate, method. A well-prepared file makes the valuation easier: see having a painting valued.
Art insurance for a private individual: which option?
For art insurance for a private individual, the home insurance policy is often the starting point. But it generally provides limits for valuables and protection conditions (safe, alarm, locks). When your artworks, jewellery or watches exceed these limits, there are two avenues: an extension of the home insurance policy, or a specialist “art and collectables” policy, often offered on an agreed-value basis. Your insurer or broker will present the cover; compare in particular the exclusions, excesses and conditions for transport or loan.
Jewellery insurance: value and the proportional rule
For jewellery insurance, the value recorded in the policy is decisive. Too low a value exposes you to underinsurance: if the sum insured is lower than the real value of the items, the compensation may be reduced proportionally. This is the proportional rule, provided for by article L121-5 of the Code des assurances. Check what your policy says on this point.
The prices of gold and stones, like the market rating of artists or watches, change. A value that was fair ten years ago may be very far off today, in either direction. Hence the golden rule: reassess regularly, for example at each important renewal or after a market movement, and update the policy. Also think of the home inventory for insurance, which lets you check that the total is properly covered.
Insurance value and estates: a link to know about
Insurance value has an effect beyond a loss. For jewellery, gemstones, works of art and collectables, the taxable value in an estate may not be lower than the estimate stated in the insurance policies against theft or fire (article 764 II of the Code général des impôts), provided that these policies are:
- in force on the day of death;
- taken out by the deceased, their spouse or their predecessors in title less than 10 years before the opening of the estate.
This rule applies unless proved otherwise. If there are several policies, the average of the estimates is used. A multi-risk home policy counts only if it designates the items precisely. These items are not subject to the 5% flat-rate allowance for furniture.
In practice, an undervalued insurance value exposes you to reduced compensation in the event of a loss; a very high value protects better in the event of a loss, but will also serve as a minimum basis for the estate tax return, unless a lower value is proved. The essential point is therefore that the insurance value be fair and documented, and kept up to date. If you have questions about the effect on an estate, speak to your notary.
With Collectalia
Each item keeps the history of its estimates and successive values, with the source and the document (valuation, invoice, certificate) attached. Insurance policies are linked to the items they cover, with an automatic reminder before the renewal date or the cancellation deadline: the right moment to reassess. A PDF insurance report can be generated for your broker, who can also receive read-only access. See the page on insurers and brokers.
Disclaimer. Collectalia is not a legal, tax or insurance advice site. The information on this page is general and based on French legislation in force as of 09/11/2026: it may change, does not necessarily apply outside France and does not take your situation into account. Always have it checked by a notary, a lawyer, an accountant or your insurer before acting on it.