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I’m sorry this has happened to your artwork. With a burst pipe, there are two separate issues to deal with: the extent of the damage and the value the insurer is placing on the artwork. You can challenge the insurer’s valuation, and you do not have to accept its first assessment without asking how it was reached.

In New Zealand, your strongest approach is to gather evidence of the artwork’s value, question the insurer’s valuation methodology, and follow the insurer’s formal complaints process if you cannot agree.

1. Build evidence that supports your valuation

The most useful evidence will depend on whether your artwork is by a recognised artist, a limited-edition print, a contemporary work, or an inherited or older piece.

• Independent art appraisal: Obtain a written valuation from a suitably qualified independent art valuer, preferably one experienced in the artist, medium or type of artwork involved.
• Purchase records: Provide original invoices, receipts, auction records, gallery correspondence or documentation from the artist.
• Comparable sales: Find recent sales of the same artist’s work, ideally similar works in size, medium, edition and condition. Actual completed sales are usually more persuasive than asking prices in online listings.
• Provenance and authenticity: Supply certificates of authenticity, exhibition history, previous valuations, catalogues or documentation showing the artwork’s ownership history.
• Pre-damage condition: Gather photographs taken before the burst pipe, previous condition reports and records of any earlier restoration.
• Specialist restoration report: Ask a conservator to assess whether the work can be restored, what restoration would cost, and whether it would retain a reduction in market value after restoration.

If you already had a professional valuation before the damage, submit it alongside the supporting evidence. An insurer may question an earlier valuation, but it should be possible to identify precisely why its assessment differs.

2. Check what your policy actually promises to pay

This is a crucial point: your artwork’s valuation and the amount payable under your insurance policy may not be the same thing.

Check the policy wording and schedule for these terms:

Valuation basis	What it generally means
Market value	What the artwork would reasonably sell for at the relevant time.
Replacement value	The cost of replacing it with an equivalent work, if available.
Agreed value	A value agreed with the insurer, subject to the wording and conditions of the policy.
Indemnity value	Its value immediately before the loss, intended to put you back in your previous financial position.

These distinctions are explained by New Zealand Consumer Protection. Insurance

Ask the insurer to confirm in writing:

• Which valuation basis applies to your artwork.
• Whether your policy has a special limit for art, antiques or collectibles.
• Whether the artwork was separately listed or covered by a specific agreed value.
• Whether the insurer is valuing it before the damage, after the damage, or on a repairable basis.
• Whether it has considered the cost of professional restoration and any residual loss of value after restoration.
• Which comparable sales, valuation reports and assumptions support its figure.

If you specifically insured the artwork for an agreed value, draw the insurer’s attention to the relevant schedule entry. Ask it to explain exactly how that provision applies to the claim.

3. Challenge the insurer in writing

Rather than simply saying its figure is too low, identify the specific errors or omissions. For example:

• It used sales of less valuable works by the same artist.
• It compared a limited-edition original print with an ordinary reproduction.
• It overlooked provenance, authenticity, rarity or exhibition history.
• It relied on an outdated valuation.
• It did not account for specialist restoration or the possibility of lasting damage.
• It applied a market-value approach when your policy appears to provide replacement or agreed-value cover.

Request the insurer’s full valuation report and ask it to explain any difference between its figure and your independent valuer’s assessment.

Keep copies of emails, reports, invoices, photographs and claim notes. Preserve the damaged artwork and do not authorise non-emergency restoration or disposal before the insurer has had a reasonable opportunity to inspect it. Take reasonable steps to prevent further damage and keep receipts for necessary emergency work.

4. Escalate if the insurer will not reconsider

In New Zealand, I would follow this sequence:

1. Make a formal complaint to the insurer. Label it a formal complaint about the valuation and claim settlement, rather than general feedback. State the amount you believe is justified and why.
2. Request a fresh independent assessment. Ask whether the insurer will agree to a jointly appointed valuer or another independent expert. Check who pays the cost before commissioning an expensive report.
3. Contact the insurer’s external dispute resolution scheme. If the insurer cannot resolve the complaint, you can generally take it to its approved scheme for free, independent assistance, subject to that scheme’s eligibility rules. Making a complaint about your financial service providerDisputes and consumer protection

Useful official resources:

• Consumer Protection — Insurance: explains valuation bases and insurance claims.
• Insurance Council of New Zealand — Making a complaint: explains the insurer's internal complaint process and escalation.
• Financial Services Complaints Ltd and Insurance & Financial Services Ombudsman Scheme: check which scheme your insurer belongs to.

The Insurance Council says a formal complaint under its Fair Insurance Code should be acknowledged within five business days, with a response within 10 business days. If it remains unresolved for more than two months, or the insurer issues a deadlock letter, you can escalate to the relevant external scheme. How to Make an Insurance Complaint (NZ)

If the amount at stake is substantial, particularly for a rare or important artwork, consider obtaining legal advice before accepting a final settlement or signing a release.

5. A letter you can send to your insurer

Email

Subject
: Formal complaint — disputed valuation of artwork claim [claim number]

Dear Claims Team,

I am writing to formally dispute the valuation of our artwork damaged by the burst pipe on [date], under claim number [claim number].

We do not agree that the amount assessed by your company adequately reflects the value of the artwork or the loss covered under our policy.

Our valuation of the artwork is supported by [independent valuation / purchase records / comparable sales / provenance and authenticity documentation]. We are concerned that your assessment may not adequately account for [identify the relevant issues, such as comparable sales, rarity, provenance, restoration costs or residual loss of value].

Please provide the following in writing:

1. Your full valuation report, including the methodology, comparable sales and assumptions used.
2. The specific policy provisions and valuation basis applied to this artwork.
3. An explanation of the differences between your valuation and ours.
4. Confirmation of how restoration costs and any residual loss in value have been considered.
5. A review of the assessment, including consideration of an independent specialist valuation.

Please register this correspondence as a formal complaint under your internal complaints process.

We request that the claim be reconsidered in light of the evidence provided. If we cannot resolve the matter, please explain the next steps for escalating the complaint to your independent dispute resolution scheme.

We reserve our position regarding the appropriate settlement until the valuation dispute has been properly considered.

Please confirm receipt of this complaint and advise when we can expect a substantive response.

Kind regards,

[Your name]
[Claim number]
[Contact details]

To help you decide on the strongest next step

There are three details that would make a real difference to how I would approach your particular dispute.

1. What kind of artwork is it? For example, a painting by a known artist, a sculpture, a limited-edition print, or an inherited piece.
2. How big is the valuation gap? For example, your valuation is NZ$30,000 and the insurer says NZ$12,000.
3. How was your valuation established? Was it a professional written valuation, a value agreed with the insurer when you took out the policy, the purchase price, or your own estimate?

If you share those details, I can help you identify the most persuasive evidence to challenge the insurer and the arguments most relevant to your policy.