Tangible assets, such as fine art, wine, jewelry, antiques,sports memorabilia, classic cars and other valuables, have finallybeen recognized as an asset class in their own right. Yet high networth individuals have too often neglected to manage and protecttheir treasures as carefully as they manage their financialinvestments or businesses. Now, individuals and families withsubstantial tangible assets have access to innovative technologyand service solutions that make it significantly easier to track,value, protect and enjoy their assets.

The” blind spot” in managing assets—as well as the solutionscoming into focus—are addressed in a new white paper released todayby ACE Private Risk Services, the high net worth personal linesbusiness of the ACE Group, and Trov, a technology leader in helpingpeople collect and benefit from the information about everythingthey own. The white paper, Breakthroughs in Managing Tangible Assets:Completing the Picture of Wealth, explores the issuessurrounding tangible asset management and presents seven steps foraddressing them. These issues include: determining value andauthenticity, keeping proper documentation, maintaining adequateinsurance, and optimizing estate and tax planning.

“Tracking the value of everything you own on a regular basis haslong been too cumbersome for most people, but without thatinformation to share with your advisors, you're likely to makeimportant decisions incorrectly,” said Gary Raphael, senior vicepresident, Risk Consulting, at ACE Private Risk Services. “Forinstance, in a survey ACE conducted among wealthy collectors,nearly 40 percent did not have all of their precious items insuredagainst property loss with a valuables policy. Many also fail toemploy proper loss prevention techniques to protect theircollections. One family mentioned in our white paper had a $70million painting hanging by a single nail. Fortunately, newtechnology is making the tracking process more manageable andallowing ACE to develop innovative services that will help clientsand their advisors craft tailored protection at a reducedcost.”

“Secure, cloud-based technology and new mobile applications aremaking it vastly easier to collect, update, and share informationabout your tangible assets on a daily basis,” said Scott Walchek,founder and CEO of Trov. “Armed with this information, insuranceadvisors and carriers can better recommend the types and amounts ofcoverage required, as well as provide timely advice aboutpreventing damage and theft. If a loss does occur, the claimsprocess goes much more smoothly because all the documentation,including updated values, is readily available. Similarly, familyoffices, tax advisors, and estate planners can anticipate issuesthat arise with buying, selling, lending, and gifting valuableitems, and recommend appropriate strategies—just as they do withfinancial assets. It's a chance, finally, to complete the pictureof total wealth management.”

The white paper and its findings also draw on the insights ofindustry experts, including representatives from Berus Law Group,Bonhams, The Conservation Center, The Family Wealth Alliance,Handler Thayer LLP, Pall Mall Advisors, Ronald Varney Fine ArtAdvisors and Rothstein Kass.

The need for high net worth families and their advisors tobetter manage and protect their tangible assets is underscored bynew data included in the white paper. ACE Private Risk Services andTrov have been collaborating on a program in which specialists haveexamined the contents of more than 3,000 homes of high net worthfamilies. Among the findings: nearly 50 percent of the homesevaluated did not have enough insurance to cover their contents,and the average amount of underinsurance exceeded $415,000 perhome. Through this program, homeowners and their insurance agentscan for the first time make decisions about the amount of insurancerequired based on customized replacement cost estimates of personalproperty at policy inception.