Protecting artwork you have collected over the years is an investment every serious collector should make. Although you may care for your art collection and protect it in your home, you can never predict if a fire or flood may destroy or damage your valuable collection. Art collections may contain works by Matisse or Jean-Michel Basquiat, and these aesthetic objects cannot be replaced if they are stolen or damaged.
Art insurance can protect the value of your collection if a worst-case scenario arises. FACE Insurance offers many different services to individuals and groups seeking art insurance policies. Preserving and caring for a collection is important, but art insurance can protect your financial investment.
If you own a collection of artifacts or artworks worth more than one thousand dollars, then insuring your collection is advisable. Artists also benefit when art insurance is more widely adopted by collectors and investors. The following are suggestions for every collector who is considering purchasing art insurance.
Most collectors who possess substantial collections should have individual artworks appraised every three years. Collectors seeking appraisal services should indicate that an appraisal is needed for reasons related to insurance. You need to obtain the market value of the individual items in your collection.
Your artworks may have appreciated in value over time. For example, you may have purchased a Gauguin for a certain sum years ago, and now its value has increased. If you purchase art insurance, you want to insure the artwork for a higher value.
Sometimes, collectors and investors inadvertently purchase artworks that have been stolen. A buyer may agree to a purchase and sale agreement believing the seller is reputable and honest, but later, the buyer learns that the artwork was stolen. Defective title coverage protects the buyer. An insurance policy covers the amount a buyer paid for an item that was stolen. Defective title insurance can cover artworks from different time periods.
Most collectors cannot buy only one work of art. Collectors and investors find themselves enamored with the rituals and traditions of collecting and investing in art. An automatic cover is a form of insurance that benefits individuals who purchase new artworks frequently.
Automatic cover permits 25% of a policy holder’s portfolio to be covered. An investor may cover 25% of any new pieces that that investor purchases. The insured must notify the insurance company of new purchases within sixty days of the date of purchase.
Investors whose collections consist of contemporary paintings may need a specific policy tailored to their needs. Collectors who only acquire sculptures may need a policy with unique provisions. Insurers analyze your collection and determine how much insurance coverage is necessary.
FACE Insurance can help you acquire the insurance coverage you need for your art collection. Begin your journey toward a more stable financial portfolio by protecting your investment. Reach out online or call us today at 916-439-8577 to schedule a free consultation during which we can advise you on the most appropriate form of insurance for your collection.