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Some people invest in real estate, some in luxury cars, and some in stocks. Yet, there are those who invest in art. According to recently published statistics, the total amount of insured art in the entire world is between $500 million to $1 billion. This means that there are a lot of pieces out there not protected with art insurance and many of these significant artworks are in the hands of private collectors.
Why Do You Need to Insure Your Art Collection?
“Insurance does not matter until it does.” This is an old joke among insurance experts and showcases how people neglect the importance of having the correct insurance policy. So, if you think that you don’t need art insurance, you’re stepping a foot into a trap many collectors have fallen into.
The reality is, art works are some of the most vulnerable investments you can have. Why do you think top museums all over the world cordon of these precious masterpieces? A sculpture can shatter with one light push. A classic painting from centuries back can be destroyed merely because of the sweat on your fingertips. A vandal can ruin a Picasso or a Claude Monet with one stroke of a pen. Not to mention natural threats such as water damage and fire.
Threats surround your precious artworks every second and it’s important to protect your investment with a proper and reliable insurance coverage.
The Art of Choosing the Right Insurance Policy for Your Art Collection
There are different nuances to underwriting an insurance policy for artworks versus other properties such as a house or a luxury car and as an art owner, you should be aware of these things.
First, don’t underinsure your art collection by getting a coverage that will only cover how much you paid to acquire your art pieces. For instance, if you paid 60 million dollars for an Andy Warhol painting, an insurance policy that will give you back the same amount in case something happened is not the right choice.
Good art insurance is one that will cover the current retail replacement value of your art collection and this can change year to year depending on the rate of appreciation. Every year, you should hire an art appraiser to gauge the current value of the artworks you own and you should provide this data to your insurance provider and they should make the necessary adjustments. It is a simple direct correlation: artworks do appreciate the value and as their value goes up, so should your insurance coverage.
Take Into Account All Possible Scenarios
As mentioned, a number of things threaten your private art collection day in and day out. When choosing an art insurance policy, make sure that you include all the things that may damage your art treasures. Do you allow your maids to come close to these pieces? Then your insurance policy should take this into account. Do you, for some reason, travel with some of your art pieces? Then coverage for possible relocation damages should be included in the underwriting of your art insurance policy. The best thing to do is to hire an art appraiser and art lawyer to make sure that you are sufficiently and legally covered. Article Source: http://www.articlesbase.com/insurance-articles/protect-your-art-collection-with-the-right-insurance-coverage-6485227.html
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