make the assumption that their art collection is covered under their
homeowners policy. Some of these collectors may be shocked to
learn that certain homeowner policies specifically exclude fine art
items. In many cases, there is a limit on the coverage of individual
pieces of art. Such limits can be under $1000. With this reality in
mind, every individual who owns even a small collection of fine art
should review their policy.
Individuals with art collections should have a fine arts insurance policy
not only because of adequate financial coverage but also because homeowners
policies generally will not cover broken or lost items, provide worldwide
coverage, and have limitations on transportation and off-site storage.
There are basically two types of fine arts insurance coverages: scheduled
and blanket. With scheduled policies, each item is individually listed
on the policy for a stated insured amount. Insurers usually require
an appraisal or a recent invoice if an item's value. Blanket policies
are policies that allow a collector to obtain coverage of items without
specifically itemizing the objects. Most blanket policies will include
a maximum limit per item. While insured art is covered in the event
of theft, fire or water damage or damage caused during transit, a policy
will not pay for gradual deterioration, such as fading or cracking caused
by natural or artificial light.
Like all insurance policy the cost depends on the value of the potential
loss. Thus, a current appraisal is necessary, and usually required by
most insurers. For insurance purposes, the type of appraisal needed
for that purpose is a replacement value appraisal.
Types of Appraisals) This appraisal values the art for the highest
amount. Although this also will increase the insurance premiums, but
it insures full coverage. Whether your appraiser offers the service
or you do it yourself, it is always beneficial to have a picture of
your fine art items. This is particularly useful if the item is stolen.
The cost of fine art insurance is fairly in line with homeowners
insurance. However, premium cost can vary significantly, and one usually
finds the best insurance values with companies that specialize in fine
to Appraising Art Home Page
-- For art owners who are covered by a
blanket should still retain an itemized list of their art. An easy way
to do this is to photograph every piece and include information about
the work on the back of the photograph. Digital photograph is best since
you also have a digital record of the work --