Owning fine art collections or even a single expensive painting is a long-lasting journey and we all are the short-term custodians of the artwork so that our next generation can enjoy it.
Therefore, it becomes imperative to protect and safeguard the artwork by investing in the right art insurance policy. Read this article to know the benefits of splurging in art insurance plans.
Many people pride themselves on purchasing valuable and exquisite pieces of art. But, they sometimes forget that real artistic work does not come cheap these days. Artwork including paintings, antique pieces, tailored-made photos, crafts, canvas frames, statues, coin and stamp collections, wine, jewelry collection, decorative art, vintage classic motor cars, musical instruments, and more can cost quite a hefty sum of money. No doubt, such treasured pieces of artwork need to be financially protected and covered by art insurance so that in case of occurrences of theft or fire or any kind of damage, the best fine art insurance company has got the artwork covered.
In the art world, the collectors who are engaged in buying the highly valuable art pieces from exhibitions, trade fairs, physical stores, and online art galleries need a fine art policy if they own the following:
- Exclusive artwork that is impossible to revamp
- Collectables which value would drop if even a single item is lost or misplaced
- Unique artwork that they lend to exhibitions and museums
- The artwork is very delicate and fragile, and its repair cost can burn a huge hole into the collector’s pocket.
What does the fine-art insurance policy cover?
It is prompted wrongfully that fine art policies will provide desirable compensation for all kinds of risks. The policy will cover the losses that occurred due to fire or theft, and will compensate for the value loss and accidental damage. The policy will exclude the artwork perils like nuclear, war, vermin and moths, and inherent vice.
Modern art insurance in trend
According to the William Fleischer CIC, president of Bernard Fleischer & Sons Inc., it is difficult to envision the hot vogue in the art insurance sector. Why? This is because an artist creates a new piece of art every day, which leads to the growth of the art insurance company. The artist uses fragile materials, which leads to exposure and damage risks. Nowadays, a plethora of artwork has been done with moving parts and electronics, so there is also a cyber responsibility to consider. Craftwork with Wi-Fi connection and electronic parts can be used as a gateway to a museum cyber-attack. The best example of a new art trend is AI-generated art. Therefore, insuring art and technology requires out-of-the-box and divergent thinking.
A well-stated statement by David Scully on art insurance: “peace of mind is a prerequisite when it comes to art collections”. The adept expert who has been in fine-art insurance suggests all the collectors cover every facet into the policy to avoid any kind of money loss in potential time.
Here are the 5 important things you need to know before investing in an art insurance plan
- Risks associated: The art piece is tangible, and with that comes the risk of breakage and accidental damage. However, with damages like theft and fire the piece can never be replaced because of its uniqueness, and the insurance company will therefore compensate the artwork with financial value to some degree.
- Insurance is much more than monetary pay-outs: Insurance has become an essential part of any art investment. The role played by the insurance company is to resolve risk and increase awareness about repair and maintenance work.
- Art insurance vs other insurance: The basic art insurance policy covers damages caused by fire, water and theft, but fine art insurance policy can also cover appreciation of market values, international transit, newly acquired items, defective titles, etc.
- Art insurance policy compensates more than basic home insurance: The collectors investing in the artwork need to understand the common difference between the home insurance (covering - remuneration for rebuilding or repairing a damage) and art insurance (the policy designed to provide financial value for the damaged artwork or pay the repair amount).
- Choose the trusted partner: There is no doubt that fine art insurance is the sophisticated sector of the insurance market. Choose an insurer that holds a wealth of experience and skills in insuring collectibles, art and antiques.
For further advice and information on insurance for your memorabilia and collections, get in touch with our experts, we will help you with the best fine art insurance policy.