Insurance Value vs Market Value for Violins: What's the Difference?

Owners are regularly surprised that the same instrument has three different values depending on who is asking. All three are legitimate, and knowing which one applies protects you from being underinsured or from over-paying premiums.

The three values

• Auction value — what the instrument would realistically fetch at public sale, net of buyer's premium. The lowest of the three.
• Market or retail value — what a dealer or luthier would sell it for, set up and guaranteed. What you would pay to buy the equivalent instrument.
• Insurance or replacement value — what it would cost to replace the instrument at short notice through the retail trade, usually the highest figure.

Why insurance value is higher

If your instrument is stolen or destroyed, you do not have the luxury of waiting two years for a comparable example to come up at auction. You have to buy from the retail trade, quickly, and possibly accept a premium to find a genuine equivalent. Insurance value reflects that reality, which is why it typically sits above retail and well above auction.

What an insurance valuation should contain

• A full description: maker or school, place and approximate date, body length.
• Condition notes, including all known cracks and repairs.
• Photographs of front, back, sides and scroll.
• A clearly stated replacement value and the date of valuation.
• The valuer's name, qualifications and signature.

Keep a copy separate from the instrument, and photograph any distinguishing features yourself. An instrument that is documented is far more likely to be recovered.

Keep the valuation current

Fine instrument prices move. A valuation from a decade ago may leave you significantly underinsured, and insurers can reduce a payout proportionally if the sum insured is too low. Most specialists recommend revaluing every three to five years, or after any significant repair or restoration.

Check the policy details, not just the number

• Is the instrument covered worldwide, or only at home?
• Is it covered in a vehicle, in a hold, or left in a green room?
• Does the policy cover bows and case separately?
• Is damage covered as well as theft and loss?
• Is there an agreed-value clause, or will they argue depreciation?

Getting a valuation

Written valuations are issued by luthiers and experts who see comparable instruments regularly. Our appraisal guide explains what the process involves and what it costs, and the directory lists appraisers and experts who issue certificates and valuations in your country.