Protecting Your Investment: Art Insurance

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Protecting Your Investment: Art Insurance| Ackerman's Fine Art

Your investment could go up in flames – literally. Unfortunately disasters are a part of life and it can happen to us all. Once you start building an investment quality art collection, you need proper art insurance coverage.  Buying art insurance can be tricky.  There are several kinds of loss and circumstances that could affect your art collection – from natural disasters to theft or just an accident that damages your art.  Providing adequate coverage is important for maintaining your investment.

Home Insurance Policy May Not Be Sufficient

Depending on the value of your collection and your existing insurance providers, you may find adding on to your current home insurance policy will be sufficient, but be cautious of the limitations. As your collection grows, either in size or value, smart collectors will want specialized art insurance.

If your collection is valued above what your home insurance coverage will allow, then look into a floater policy from an art insurance company. Your current insurance provider may already have a specialized art department. It’s still a good idea to shop around and compare the different levels of risk that companies are willing to cover.

Basics on Insuring Your Fine Art Collection

  • Not all providers are alike. Research art insurance providers to make sure they offer the expertise you need for your particular collection.
  • Give careful consideration to all types of possible risk beyond the obvious theft, fire, and flood. Often adding additional coverage is inexpensive and it could be foolish not to include.
  • Purchase as much insurance as you can afford. Having some coverage is better than none at all.
  • Document your collection with good quality photographs, invoices, appraisals, restoration reports, and certificates of authenticity.  Scan your documentation and keep a digital copy in another location, such as safety deposit box or at the office.
  • Read the fine print of your policy.  You must be well informed about what is and is not covered.

Fine Art Title Insurance Can Protect You

Forgery has become a big a problem in the art world.  Even museums are often fooled.  If you acquire art by important artists, consider art title insurance. This will help ensure your investment is protected against forgery.  Today, there are many excellent forged works on the market.  There is also a lot of stolen artwork.  Check databases that keep a record of stolen art worldwide, such as Art Loss Register of London and the FBI’s National Stolen Art File.

Specialized art insurance is an important part of building an investment quality art collection.  There are many risks and different levels of coverage, so do your homework and revisit your policy as your collection evolves over time.  You can always call Ackerman’s Fine Art to get more advice on what is best for your needs and the art you have collected.

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