For a billionaire diva whose collection of clothes is much more than a passion, clothes are more than just some wearable, they are assets. Designer clothes with labels like Hermes, Chanel, Dolce and Gabbana can be worth millions. A slight wear and tear might cost to cutting their price by half or more than half. Lest to speak of natural or artificial disaster, if these pieces are damaged, they can inflict serious loss. Clothing accessories are generally not included within insured items, on the other hand, these are more prone to damage. Insurance on designer clothing could be a boon for their owners.
AIG, the American International Group has brought up a new insurance policy that include “wearable collection coverage.” The insurance covers designer clothing and accessories. For Ron Fiamma, Vice President and Global head of private collection of AIG Private Client Group, wardrobe collections are no less than fine art, vintage cars or wines and customers should have the privilege to insure them. The group has worked closely with Garde Robe Online, LLC, for identification of coverage features as well as to develop a comprehensive insurance solution for designer clothes.
Under the insurance, both couture and ready to wear garments are covered. The items included comprise of vintage garments, shoes, handbags and other fashion accessories. Damage caused by floods, earthquakes, mold, moths and other accidental risks are covered under the insurance policy. It is also extended to dry cleaning and restoration cost by high profile garment care specialists. The insurance includes expenses of relocating a designer wardrobe in case of an impending disaster. It also insures on damage during the move. Within the policy, in-house management specialist are included round the year. It is with several other services like emergency planning, vulnerability assessments, wardrobe preservation specialist and others.
The cost of the insurance would be about USD 3000 a year for a designer wardrobe valued at USD 1 Million. The premiums vary according to location of the asset. According to estimates by AIG, about USD 5 billion is expensed as annual insurance premiums. These value, however, does not cover luxury designer clothes and AIG wants to offer the unique option.