KGS Forum 5/04: Erdbeben und Kulturgüter - Planat

PCP PBC KGS
By adjusting the definition of the value of
an object to its recovery value rather than
its financial one, a solution can be found
which enables the insurance firm to provide
financial support to restore the ideal value
of the property. This would also be the case
for insuring against earthquakes.
Loss of cultural property following an
earthquake – insurance issues
The value of cultural property lies not primarily
in its financial worth, but in its status
and role in passing on traditions and history,
as well as in its aesthetic and artistic
impact. Priceless assets cannot be insured,
as insurance cover deals only in compensatable
financial values. There are five different
value categories: ideal value (emotional,
historical, artistic/aesthetic), market value,
material value, utility value and recovery
value. Calculating the value of cultural property
depends on individual and subjective
estimations.
Currently, a solution has yet to be found in
relation to insuring cultural property against
earthquakes. However, should immovable
cultural property suffer damage as a result
of an earthquake, a special «earthquake
pool» exists to cover restoration costs. Insurance
cover is feasible both as an individual
solution and as a compulsory or optional
market solution. Insurance could imply
conditions and incentives such as appropriate
safeguard measures or safeguard
documentation that meets the relevant
standards. Insuring cultural property is always
a second-best solution. The best way
to insure the ideal value of cultural property
is the active appreciation of the object, which
is reflected in measures to protect and
preserve it.
It is therefore extremely difficult to quantify
individual value categories. This is particularly
true for the ideal value of an item of cultural
property. It is essentially intangible, cannot
be measured in monetary terms and is irreplaceable
should damage occur. This ideal
value accords the object its status as an
item of cultural property. Conversely, the
market value of an item of cultural property
is very easily calculated. It corresponds to
the financial value a potential purchaser is
willing to pay for it. Generally of secondary
significance is the material value. The utility
value of an object is directly derived
from its function and the utility it thereby
represents. When insuring cultural property,
the recovery value provides a reasonable
starting point for valuation. It relates to the
estimated cost of restoring the damaged
object.
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