There are two things that are sure if you are reading this text. The first one is – you have impeccable taste in art. The second one is – life is unpredictable. That’s why it is important to insure your art collection – and it doesn’t have to be a major life accident to regret your artwork not being insured. Damage can be as simple as mold damage insurance claim. And the question is not whether your art collection is replaceable. Because unfortunately in some cases, your Fine Art may not be saved. But on the other hand, your finances could be spared! And no matter the type of art you have, it certainly has some value, so let’s see what’s the best way to insure your collection.
Not all agencies can insure your art collection
First of all, you need to know if your home or renter insurance covers your art collection. That’s why it’s important to always check for small letters at the bottom of the agreement – and all exclusions. The thing is that you may need to buy a separate policy to cover your valuables. Our professional insurance adjuster can help you with this. We can help to valuate the total loss, including building damage, contents, business interruption and additional expenses of your artwork. So home insurance policy may not be so good for art collection insurance as one may think.
Choose the right Fine Art insurance company
If you are not sure where to start, here is a great guide for choosing an insurance company. In this way, you will know right away which company has experience when working with art and collectibles. The very first thing in a specialized insurance company that will help you to insure your art collection is that the value of your art collection will be taken very seriously. People here specialize in your case and your case only and can help you settle the claim easier. We will also negotiate with the insurance carrier on your behalf, which will make the whole art insurance process so much easier and quicker. We will review your policy to identify all aspects of coverage that could be applied to your claim with a focus on Fine Art (and not just the damage in general). Besides, your artwork collection may need restoration and not all polices cover this. That’s why the specialized company in art insurance will have all the answers.
Types of artwork insurance policies
The most common types of art insurance are called title and property. The first one implies the insurance policy for a specific title of art. This may be used if the artwork is really valuable, and may be convenient for galleries or museums. For example, theft loss would be less of a burden for an art institution to have a policy on certain works of art, rather then to cover them all. On the other hand, if you wish to cover the entire property, you may want to choose the property insurance. This will cover the expenses of theft or damage. On the other hand, this may not affect all your art collection. But getting something in case of the damage is better than nothing. That’s why you need to see what is iportant to you and specify what you want to insure.
Prepare and read all the documents
Before you even go to the insurance company, it would be wise to take photos of your art collection. The other thing you need to do is to prove the ownership of your art collection. With this, you should get all the documents you possibly can that have any connection to your art, like appraisals and receipts. You may also need copies of the appraisals and description of each item in your art collection. The one thing to remember is that you cannot get the higher amount of money for your art than the one that is stated on the appraisal. So if you bought artwork for a higher price, you need to discuss this with your insurance company. Also have in mind that earthquake and flood damage are specific, so you need to list your art collection separately.
Once you get the insurance policy, read it carefully. You will need to understand every aspect of it, so if you need help, ask your agent if you are unsure about certain articles in the document. You should also keep in mind that coverage details could be negotiable and specified individually. The good thing is that you probably don’t need to insure every inch of your collection. In most cases, partial coverage is enough.
What should you insure against
Like we said in the beginning – life is unpredictable. There are surely many hazards to consider, like in-house fire hazards but there are so many more. That’s why you should talk to your insurance company and see the different situation you may find yourself in. Theft and damage during transport are the most obvious ones, but there can be natural disasters as well along with coverage on exhibitions.
The good policy covers replacement and restoration. In first case, you’ll be insured if your art collection is somehow destroyed. In the second case, you may get partial reimbursement to restore it. The other thing you should consider is to insure against additional costs. That’s why there’s a difference in the original cost of the artwork and the replacement value. This means you have to get your collection appraised every so often because price of art can change over the course of time.
In the end, we are sure that your art collection is irreplaceable no matter what happens. That’s why it is important to understand how to insure your art collection in Florida. If nothing, this can be a good pat on the back that will motivate you to keep on collecting artwork.