When people discuss art, people contemplate time periods, rarity, prices, and artistic techniques, but oftentimes fail to mention art theft or even art insurance. News sources report dozens of art thefts worldwide, both recent and infamous thefts, including “The Scream” and “The Madonna” that were stolen from the Munch Art Museum in 1990. Because of the rarity of fine art items, people believe insurance, which is used to replace the original item, is unnecessary because the item is irreplaceable and a claim check wouldn’t bring it back. But even Van Gough’s and Picasso’s smallest works require insurance.
Art insurance is often purchased to protect against risks, such as fire, earthquake, or water damage. Smoke damage, restoration, and minor tears may be covered under art insurance—depending on the carrier and policy wording—but art insurance can provide so much more protection, even against theft and unthinkable damages. For more information regarding art thievery and art insurance, please click HERE.
3 Steps to Guaranteeing Art Insurance works for you:
For all expensive, rare, and/or valuable artwork, whether private or commercial, documentation is a key factor to value. Photographs, appraisals, purchase receipts, and any additional value to the artwork (such as upgrades in framing, artist’s signature, personalized messages, etc.) should be recorded and safely stored. If damages may occur, documentation ensures that the insurance claim may pay out the highest possible remuneration, which, again, depends on the carrier and policy wording.
Purchase Art Insurance
Purchasing art insurance helps to guarantee that your investment in art, whether private or commercial, is protected. The minimum bracket of art insurance helps against minor damages, depending on the insurance and specific claim, but purchasing the highest level of insurance without breaking the bank will guarantee better coverage of the artwork.
The benefit? Insurance holders hardly ever spend as much on insurance as the actual art, painting, or sculpture costs—normally just .03% of the original price. However, if an accident or theft occurs, the insurance covers losses under specific policies.
Know Your Art Insurance Policy
Read the fine print. Ask your insurance agent any questions you may have regarding a specific policy and what your current insurance covers. Discuss supplemental policies and Agreed Value Basis art insurance with an insurance agency today.
Having insurance is valuable; knowing what your insurance covers is invaluable.