Art Insurance Is Your Defence Against the Unexpected Smudge

Recently our art insurance specialists had a horror story to tell, such as pencils going through paintings and red wine glasses flying onto canvasses. In each case, the art collector came to the insurer after the incident looking for a restoration expert and art insurance coverage.

Keep in mind that not all insurance policies cover fine art. It is a specialist subject matter, and we have experts who specialise in fine art and jewellery insurance. We learned that art collectors need to be ready for anything.

A homeowner’s policy usually is not as sophisticated as a specific fine art insurance policy, and they have a lot more restrictions and a lot more underwriting. As the art market has become more sophisticated, a homeowner’s policy is not ideal.

The advantage of working with a broker who specialises in fine art insurance is that we work on behalf of the client. There is personalised attention when working with a broker who is working on your behalf.

Art Insurance specialists have more experience in creating policies to protect your prized art collection and know how to help in claim situations. Should you need to claim, an art insurance specialist shall treat your collection will with care, whereas, with an off the shelf homeowner’s insurance policy, your art collection is nothing more than a part of your valuables.

Speciality art insurance companies focus on the art, and they understand claims, how the appraisals work and understand the movement of an art piece.

Like any insurance policy, be aware of what is covered. Some personal policies exclude restoration. Meaning that if your piece is harmed (think: red wine flying at a canvas) and needs to be repaired, you will be responsible for the cost.

The first step to ensuring your art collection is putting together all the necessary documentation to prove that the work of art is yours and what it is currently worth. These documents include proof of ownership, bill of sale, provenance, a replacement estimate, photographs, and the most recent appraisal.

If you are scheduling an updated appraisal, specify that it is for insurance purposes. This will give you the most up-to-date market value of your piece. Not only is this important for insurance, but necessary for planning your estate, analysing the overall value of your collection, filing your taxes, and selling artwork.

Accurate information also makes you a lower risk within your insurance policy.

Our advice is; do not wait to mitigate your risk. The best way to be sure that your insurance policy covers everything you need is to ask questions. Ignorance is not a defence, and not having insurance is a risk. So do you take the risk or hedge the risk?

Your art collection is irreplaceable, and art insurance protects your assets and your investment. It also ensures that, even in the event of a catastrophic claim, you can continue collecting.

You are never expecting something to happen. Having insurance gives you peace of mind. Cherish what you love and keep it safe. Get more expert collecting tips for finding, buying, and caring for your collection.