When it comes to valuing art, antiques, jewellery, and wider collections, the term “value” is often assumed to be straightforward. In reality, different contexts require different types of valuation, and confusing them can lead to serious financial, legal, or tax consequences.
At Chiswick Auctions, we regularly advise private collectors, executors, solicitors, and institutions on three of the most commonly misunderstood valuation bases: Market Value, Insurance Value, and Probate Value.
Understanding the distinction between these is essential to ensuring accuracy, compliance, and informed decision-making.
Market Value is the price that an item is expected to achieve if sold in the open market at the valuation date.
In practice, this is usually defined as:
The amount for which an asset should exchange between a willing buyer and a willing seller, acting knowledgeably, prudently, and without compulsion.
For artworks and objects offered at auction, Market Value is often closely aligned with auction estimates, informed by recent comparable sales, current demand, condition, provenance, and prevailing market trends.
Market Value reflects realistic sale expectations. Overestimating can deter buyers and result in unsold lots, while underestimating may expose sellers to unnecessary financial loss. Accurate Market Value advice supports informed strategy and optimal sale outcomes.
Insurance Value represents the cost of replacing an item with another of similar age, quality, and condition, often at short notice.
Unlike Market Value, Insurance Value typically:
As a result, Insurance Value is usually higher than Market Value.
Under-insurance can result in inadequate compensation in the event of loss, theft, or damage. Over-insurance may lead to unnecessarily high premiums. Regularly updated and professionally prepared insurance valuations ensure collections are properly protected.
Probate Value is the value of an asset at the date of death, prepared for the purposes of administering an estate.
In the UK, probate valuations must be:
Probate Value is generally aligned with Market Value at the date of death, but with particular care taken to reflect achievable prices rather than optimistic assumptions.
An inaccurate probate valuation can expose executors and beneficiaries to:
Professional probate valuations provide reassurance, transparency, and compliance at what is often a sensitive time.
Using the wrong valuation basis, or relying on informal or outdated appraisals, can have serious consequences:
Each valuation serves a specific purpose. Accuracy depends on understanding both the asset and the context in which it is being valued.
Chiswick Auctions provides specialist valuations across a wide range of categories, including fine art, decorative arts, jewellery, silver, books, and collectors’ items.
Our valuation services include:
Our experienced specialists work closely with solicitors, executors, private collectors, and institutions to ensure valuations are robust, compliant, and tailored to their intended purpose.
If you are unsure which valuation basis applies to your situation, our specialists are happy to advise and guide you through the process with clarity and discretion.
Contact: Maria Zuccon - Head of Valuations - maria.zuccon@chiswickauctions.co.uk