Do you buy art because you appreciate the finer things in life, or do you look at it as a form of alternative investment? Whatever your reason may be, acquiring and amassing an art collection can be an extremely rewarding experience. Your buying habits are a reflection of your unique personal tastes and preferences.
As your taste and preference usually play a vital role when selecting these pieces of art, it is common to be emotionally attached to your collection. Moreover, a sizable collection of paintings, sculptures, antiques etc. will also be of substantial financial value. Thus, it is important that you consider the necessary protection for your art collection.
Protecting a private art collection whether in a home, office or storage location is essential but often overlooked by many art buyers. You may not be in possession of a multi-million dollar collection, but you may find that the experience of looking after your artwork, mitigating potential risks, restoring a damaged piece, or in the worst case - losing a beloved artwork, can be quite daunting. This is not only a time consuming exercise but can also be quite costly.
This is why art insurance should be a key factor in the ownership of art and the care of a collection. That said, where do you start? Check out 3 simple tips:
1: Create an inventory of the art pieces you currently own
Keeping an inventory is essential in taking stock of your treasured possessions. This also ensures that the insurance policy provides adequate coverage for all your pieces. Don’t forget to add on to this list as you continue to grow your collection over time.
2: Know your coverage
Do you have a standard home and contents insurance policy? If so, do you know what the limit of coverage per item or claim is? In the unfortunate event that your cherished collection is lost, stolen or damaged, you may not be adequately covered.
Most standard policies will not cover your valuable artwork up to its actual value and may limit the amounts they pay out. To find out more about your existing coverage, do contact your insurance company, insurance broker or agent.
3: Purchase a comprehensive plan
Choose an insurance policy that offers comprehensive coverage taking into account risks specific to artwork. This can include appreciation of values, damages during installation, transit and storage, title/ownership disputes and other complex art claims scenarios. Your plan should also provide specialist services in art.
It is important that you speak to a fine art specialist who understands your needs. After all, if you view your art collection as your prized possession, this will pay off in the long run and you can enjoy the peace of mind knowing that your artwork is sufficiently protected.
'Protecting Your Art Collection' is written by Regina Baxter, Regional Fine Arts Specialist & Business Development Underwriter, Personal Risk Services.
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It will be too late when you realise that you are not adequately insured. Contact us to find out how we can help you protect your valuable possession.