From dream homes to unique collections - anyone who owns something special wants to protect it. Taking out insurance seems obvious, but high-net-worth individuals in particular quickly face major challenges. Bureaucratic red tape and strict restrictions cloud the idea of knowing that your possessions are safe. For this reason, so-called all-risk solutions are becoming increasingly popular.

We talked about this in an interview with Frank Buchholz, Partner at Hoesch & Partner, one of Germany's largest insurance brokers with over 40 years of company history. He himself has been part of the company for 13 years and looks after corporate and private clients as well as networks with family offices and private universities, where he supports the generation of tomorrow with their first insurance questions.

Mr. Buchholz, let's talk briefly about the facts: What exactly is all-risk insurance and what distinguishes it from others?

First of all, it is the target group. All-risk insurance can also cover buildings, for example, but starts at a pure property value of 1.5 million euros. The focus is therefore clearly on higher insurance values.

But what really makes them stand out in the end is their individuality. Put simply, there is almost nothing that cannot be insured. This fact is particularly important when it comes to collections. From works of art, jewelry, watches and vehicles to private wine cellars, anything is possible. Some time ago, I even had a request for a collection of Steiff stuffed animals with a six-figure value, which was of course accepted.

So the difference is only in the value and type of items insured?

Not at all. The most important contrast is the reversal of the burden of proof. Let's take the example of a valuable watch that a businessman likes to wear when traveling and which has now gone missing.

With a standard insurer, the policy clearly defines the circumstances under which payment is made. Loss or simple theft are usually excluded, so the injured party in our story cannot expect any reimbursement. Even if they do, the onus of proof is on the provider.

With an all-risk insurer, it is exactly the opposite. They offer worldwide insurance cover against all kinds of risks and define few criteria in the policy that lead to exclusion, such as war, civil unrest or intent on the part of the owner. In our case, this means that even if he accidentally left the watch at the airport in Spain, the insurance will cover it.

So is this a type of insurance specifically for collectors?

I would say it's more like insurance for the security-conscious who want to protect their possessions. And collector's items in particular have not only a high physical value, but also an emotional value: sometimes the watch is an heirloom, other times the wine cellar is a life's work.

But there are also much more pragmatic options: people who move around the world a lot and want to avoid unnecessary bureaucracy, for example, also make up part of the target group. Covering their main residence in Germany and vacation properties abroad - including household contents - with one insurance policy is highly appreciated by many - especially if they have a central point of contact for everything.

We have already discussed the fact that cases such as loss or theft are also covered by all-risk insurance. But what if the lost watch is difficult to replace?

First of all, the current value is relevant here: If the purchase price differs significantly from the current replacement value, the insurer will ask on what basis reimbursement should be made. This makes it easier for the customer to find the same watch again - even if it is now considerably more expensive than it was when it was first purchased.

Furthermore, specialist insurers often have a good network of collectors and specialists who can help to meet requests for rare items.

You yourself work for an insurance broker - what are the advantages of working for an insurance broker as opposed to concluding a contract directly with the insurer?

Basically, the advantages, similar to the family office, can best be summarized in the network and the relief.

The first thing to know is that All Risk is merely a type of insurance offered by various service providers. As with household contents or liability, you can choose freely. However, there are only a few providers and they rarely advertise their services openly. It is much more of an exclusive referral business, which makes it considerably more difficult for interested parties to gain access. An insurance broker has an excellent network, knows potential insurers and can therefore provide his customers with comprehensive advice and even offer them several options to choose from.

In terms of relief, it is very convenient to have a central contact person for all insurance matters in the broker. Whether it's a new purchase or an acute claim - one call is all it takes and someone will take care of it. This is a great support for anyone who is time-strapped or wants to avoid bureaucratic hassle.

One final question: What advice would you give to someone who owns a valuable collection, for example, and is still unsure about insuring it?

All-risk insurance charges higher premiums than standard cover, although they are equalized from an insured value of 500,000 euros.

The first step should therefore always be to ask yourself what you expect from the insurer. Am I happy with normal household contents insurance and am I prepared to accept the expense and risk of conflict in the event of a claim? Or do I want someone at my side who will immediately exonerate me without requiring me to provide extensive evidence?

Based on this, value also plays a major role - both physically and emotionally. Most people underestimate the value of their possessions. Being really clear about this and thinking carefully about what you would want in an emergency can help a lot when making a decision.

Thank you very much for the interview.