For many people in the world, the odds of owning an expensive bag and shoes are much, much higher than owning a car. Yet, there was no specific insurance to cover them. Recognizing this (ridiculous!) gap in the market, American International Group- AIG, recently launched a more specialized insurance solution for couture and designer wearable collections for its high net worth (read: insanely rich) policyholders.
If you are as confused about this as I am, here is how the insurance works: Your items are individually scheduled on the policy with the possibility to use blanket coverage for less expensive items. The items could be anything from couture and ready-to-wear garments, shoes, handbags, to vintage and historic clothing. The insurance covers floods, moths and molds that are typically excluded from a homeowners policy. What’s more, it covers custom, work-in-progress couture and shoes, reimbursement for expenses for clients who protect their couture items by removing them from their homes in advance, as well as dry cleaning and wardrobe preparation expenses following a covered loss.
In order to provide an excellent service, the AIG worked with experts at wardrobe storage and preservation service to create a more comprehensive solution. For instance, there are in-house collection management specialists available for services such as vulnerability assessments, emergency planning and referrals to wardrobe preservation specialists.
So how does this policy cover those hidden rare, vintage and one-of-a-kind pieces, which have over the years become damaged beyond repair? Obviously, the policy would cover the repair cost of a damaged item, according to the insurance expert. But if there is still lost value after all the repair work is done, there’s a unique feature in this coverage that’s similar to what you can find in Fine Art policies, and it would compensate the client for that lost value as well.