ART COLLECTING: Insuring Your Art
The reasons for collecting art vary from aesthetic attraction and investment to pleasure and the desire to support an artist. Whatever the reason, however, all owners and collectors become custodians of their masterpieces, something that entails a responsibility to protect an irreplaceable part of the world’s culture. It is crucial to keep works of art in a safe environment, away from damaging effects that could diminish their monetary and aesthetic value. It is also crucial to consider protection against loss, theft, or any other misfortune.
As an art owner, you will want to ensure you have a detailed and well-documented inventory of every item in your collection. These records can range from photographs and original receipts to professional appraisal reports. Written or printed documents that prove authenticity of ownership serve as proper records and will help with any insurance claim. Keeping good documentation can also increase the value of the work over time. It is always important to obtain an independent appraisal of the art’s current value, and many insurance companies can provide information on where and how to find a trusted appraiser. Art dealers, local galleries, and museums can help in this area as well. One reason a professional appraisal is needed is in the case the work requires restoration as a result of damage. In addition to insurance purposes, it is also wise to have periodic appraisals to account for any loss or gain in value of the work. Keep in mind, there are different types of appraisals. A replacement value appraisal provides an estimate of how much would be required if any item in your art collection were destroyed, lost, or stolen, taking into account additional costs such as acquisition, shipping, and framing. Other appraisals supply an estimate of what the art is worth on the open market. The next step is finding an insurance company that has experience and specialization in the area of art. This is critical, because they are much better at addressing art claims, understanding how the art industry works. They can also provide advice on how to best protect your collection against theft or damage. Just as with appraisers, information on insurance companies can be obtained directly from many art dealers, local galleries, and museums. Researching and shopping around for rates and coverage is essential, keeping in mind that with insurance — as with everything else — you get what you pay for.
Once you have chosen an insurance company, the next step is to have a complete and clear understanding of the policy. Do not hesitate to ask questions and carefully read the fine print. Know what is covered and how much coverage is offered. Insurance coverage can be expensive, but it can also be as little as one percent of a work’s value, depending on the number of items in the collection, security, and location. A great way to reduce insurance rates is by having a good security system and providing a safe environment for your artwork. There is no excuse for not insuring even a single item in an art collection. Insurance compensation can be used for any purpose, from restoration to recovery. It can even be used to generate publicity or hire a private detective. For many owners and collectors, their collection tells a story of how they perceive themselves and their world. Works of art are unique, irreplaceable treasures that must be conserved. Art is an essential part of life, a source of inspiration that both captivates and enlightens. It is a reflection of humanity that encapsulates both emotion and culture. Whether you collect art as a form of appreciation or investment, protection against damage and loss is extremely important.
Left: “Desireè”, Daniel Merriam, Fine Art Limited Edition, 24” x 36”
“Keeping good documentation can also increase the value of the work over time. It is always important to obtain an independent appraisal of the art’s current value...” 31 EXCLUSIVE COLLECTIONS GALLERIES
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