Owner of a Picasso? Just inherited an antique masterpiece? Or perhaps you’re an emerging collector starting to acquire valuable pieces. Regardless of the extent of your art collection, one crucial aspect that often gets overlooked is how to properly “insure paintings“. This is an investment as important as the pieces themselves, as it provides financial safety against damage, theft, or other unforeseen circumstances.
Art insurance isn’t just for the deluxe end of the spectrum – whether you’ve invested in paintings worth hundreds or millions, there’s a need to insure your artwork to protect its intrinsic value as well as the sentiment behind it. So, how does one go about it?
Firstly, it’s critical to understand that your household insurance policy, no matter how comprehensive, is unlikely to cover the full value of high-end artworks, if at all. They usually are capped at a specific limit and tend to exclude items of ‘high risk’ like jewellery, cash, and, of course, artwork. That’s why having a separate policy to “insure paintings“, obtained through a specialist art insurer is a wise choice.
The next issue is the accurate assessment of worth. The value of art is subjective and fluctuates. It is significant to get the paintings appraised by a professional art appraiser. This expert will evaluate the piece or collection, taking into account variables such as the artist’s market, the piece’s provenance, its condition, etc. These appraisals should be updated every two to three years for your policy to mirror current market value. Bear in mind; if the artwork’s price soars after an artist’s death, for example, insurance should be updated accordingly.
Usually, there are two types of insurance policies available to “insure paintings“. The first is Actual Cash Value (ACV) policy, where the insurer pays the original purchase price of the painting, minus depreciation. This isn’t advisable for art as its value often appreciates over time. The second policy, the more recommended one, is the Agreed Value policy. As the name suggests, this is how much your insurance company agrees to pay you if your painting gets lost, stolen, or damaged beyond repair.
Carefully narrow down potential insurers. Look for companies specializing in artwork and collectables, such as AXA XL, Hiscox, and Chubb. These insurers tend to have in-house fine art specialists and understand the nuances of insuring valuable artworks. Their policies often cover a wide range of risks, such as accidental breakage, theft, fire, water damage, and even depreciation in the artwork’s value following a partial loss.
One crucial element of insuring your art is understanding the policy’s terms. Most policies are “All-risk,” covering all forms of physical loss or damage unless explicitly excluded. They can either be “wall-to-wall”, covering the artwork during transit – a time when it’s most susceptible to damage – or “nail-to-nail”, insuring it only when it’s properly mounted. Also, ascertain whether your policy covers the artwork temporarily located elsewhere, during an exhibition or loan, for example.
After purchasing insurance to “insure paintings”, it’s important to store your artwork thoughtfully. Regular maintenance, correct positioning away from direct sunlight, and avoiding extreme temperature fluctuations can help avoid potential damage. Appropriate measures to protect against theft should be in place too. Cameras, specialised locks, entry alarms, etc., can serve as excellent deterrents.
The loss of a cherished painting, whether monetary or sentimental, is irreplaceable. It could be more than just a financial investment; it could be a cherished gift, a family heirloom, or a token of a cherished memory. Having the right insurance is vital to ensuring that you’re compensated for any unexpected losses.
In conclusion, to “insure paintings” is not merely about guarding appreciating assets; it’s about appreciating the importance of heritage, culture and personal taste. As Pablo Picasso wisely said, “Art washes away from the soul the dust of everyday life,” so let’s insure our art, insure our passion, and enjoy this wonderful journey of art collection with complete peace of mind.