Tips for Insuring Your Fine Art

Insuring your art collection with proper coverage is no different than insuring anything else of value that you have—from your car to your house to your life. Insuring your art will give you the peace of mind of knowing you’re protected if the worst should happen.  

What About Homeowner’s Insurance?

Don’t make the mistake of assuming your homeowner’s insurance covers your fine art collection. Check your exclusions! For instance, if your policy gives you $20,000 worth of coverage, it may designate that no more than $5,000 of that can go towards artwork. Even if your homeowner’s policy does not exclude fine art or collections over a certain value, does it offer the specific type of protection a fine art collection requires? 

As collections and collectors have grown more sophisticated over the years, insurance policies have been built for their unique needs. While you may be able to get a rider from your homeowner’s insurance policy, coverage designed specifically for fine art has a lot more underwriting to keep your collection as protected as possible. 

Who Needs Fine Art Insurance? 

The most important thing to consider is whether the location of the artwork in question is public knowledge. Clearly, museums need fine art insurance, but so do private collectors who have drawn attention from the news or whose transactions are public records. 

People who have older works of art can help protect their investments from degradation with fine art insurance. Perhaps this is not such an issue for new collections made with modern materials, but the older a collection or piece is, the worse the original materials. The older your collection is, the more crucial it is to have the right insurance coverage. 

Additionally, art dealers who regularly transport fine art from a known location would also be wise to have fine art insurance. The overwhelming majority of art insurance claims come from transportation. This is when an artwork is at its most vulnerable.

Two Types of Art Insurance Coverage 

The main type of art insurance is “property insurance.” This type of policy generally covers you if your insured piece or collection is stolen, damaged, or simply goes missing. Check the details of the policy to see the specific terms, but these are the most common terms.

If you have ever bought a house, you are no doubt familiar with title insurance already. Title insurance is also available during the sale or purchase of fine art. This one-time expense covers you if there are any defects with the piece’s title. You can be compensated if, for example, the title is a phony.

How Much Does It Cost to Insure art?

As a general rule, art insurance premiums will run you 1-2% of the value of the piece or collection per year. Just like any other type of insurance, there are a variety of factors to consider in the cost of the policy: 

  1. Do you loan out or transport the collection frequently?
  2. How much is your art worth? What is its condition at the moment?
  3. The location (and level of security of that location)
  4. Restoration costs (if applicable)

Need Insurance for Fine Art?  

FACE Insurance provides reliable and specific coverage to best protect your fine art.  Reach out online to learn more about insuring your art collection today.