An adjuster was presented with a water damage claim involvingwhat was described as an antique 10-foot by 13-foot Heriz Rug valued at$25,000. The water damage caused the colors to run, rendering thePersian rug a total loss according to the insured's claim.

The owner provided the adjuster with the provenance of havinginherited this early 20th century rug from a family member. Theowner also provided documentation of having spent several thousanddollars restoring the rug to what was described as “pristine”condition. Initial online research using the term “Heriz rug”along with the age, size and the word “pristine”, supported the$25,000 claim. Nonetheless, the adjuster had some reservationsabout whether or not the rug was a total loss, and called incontents claims specialist to consult on the case.

Case Background

The first clue for the specialist that the value of the rug wasdrastically inflated was the determination the prior restorationinvolved “reweaving and re-coloring”. Reweaving meant the rughad structural deficiencies that had to be addressed. There-coloring or “painting” as it is known in the trade was a hugetip off to the contents expert as to the less than pristinecondition of the rug.

Persian rugs are handmade. The foundations of these rugsare threads called “warp thread” running the full length of therug. Contrary to popular belief, the “fringe” is not addedonto the ends of the rug as a decoration, the fringes are actuallythe exposed ends of these warp foundation threads. The weft threadsare the foundation threads that run the width of the rug. Thematerials used for the foundation threads vary by region of origin,but they are most commonly white cotton. The foundation isessentially a thread grid upon which small pieces of differentlycolored dyed pile material, usually wool, are wrapped around thecotton foundation threads, and tied, or “knotted” to create thewonderful, colorful patterns we associate with this type ofrug.

When a rug is said to be “thread bare,” it means wear and tearhas worn down the colored wool pile, starting to expose the whitefoundation threads. What do some people do when a rug is this wornand the exposed white foundation threads are becoming visible andunsightly? You guessed it. They paint the area with dyes,coloring the white foundation threads to match the pile colors, inan attempt to mask the rug's extremely worn condition.

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Fortunately the carrier and the adjuster involved in thisparticular case had contents specialists to handle the specialtyclaim and provide the expert assistance needed to recognize thatthe rug in question had lost its pristine condition long ago.

The Result

Contents experts secured images that confirmed the wear and tearand that painting was used to improve the appearance but not theactual condition of the rug. The images also revealed less thanexpert quality re-weaving and evidence that reinforcing had beenglued to the back of the rug to stabilize a failing foundation. Asa result, contents experts determined that preexisting conditionsdictated that $7,500 would be the proper valuation for this rugrather than the total loss of $25,000 claimed.

Experts also determined that the rug, now valued at $7,500, wasnot a total loss. Since the rug had been painted oncealready, simply bleaching the area with runs and re-coloring wouldrestore it to its pre-loss condition. In the end, $2000covered restoration costs with no diminution of value to theinsured's Persian rug.

See also: TheCase of the 20th Century Copy