Art is appreciated for its beauty and emotional power, but it also represents a significant investment that may increase in value over time. Whether you are an active collector or you own vintage art that has been handed down for generations, you need to have protection in place for your finest pieces of art with a Fine Art Insurance policy.
Fine Art Insurance Coverage
Homeowners Insurance policies typically have limits on contents coverage, and just one valuable piece of artwork could be enough to exceed those limits. Fine Art Insurance coverage offers collectors crucial financial protection should their artwork become damaged, stolen, or lost. One of the most common claims seen in this type of insurance is accidental damage during transit.
This type of policy offers greater protection than a typical household property policy and takes into consideration the fact that owners are trying to preserve the items for future generations. You can choose a policy with a scheduled structure or a blanket structure.
Scheduled Structure
With a scheduled structure policy, each item in your collection will be listed individually on the policy for a stated amount of insurance. When the item exceeds a specific dollar amount, it may be necessary to provide a recent invoice or appraisal for the item in question.
Blanket Structure
With blanket policies, a collector can obtain coverage for a group of items without specifically itemizing each one. Most of the blanket policies available set a maximum limit per item.
What Does A Policy Not Cover?
Although fine art policies tend to cover a broad range of potential incidents, there are a few coverage exclusions to keep in mind. Here is a look at some of the most common exclusions.
War
Damage to your art collection related to war is generally not covered by Fine Art Insurance policies.
Nuclear
Nuclear hazards that compromise your art collection are not covered by Fine Art Insurance.
Insects & Bugs
This type of policy does not cover the infestation, nesting, or release of waste products or secretions from insects, rodents, and other types of animals.
Gradual Deterioration
Gradual deterioration such as creasing, denting, or fading that may naturally occur to artwork over time is not covered by these policies.
Who Should Consider Acquiring A Policy?
Even if you do not consider yourself a full-fledged collector, Fine Art Insurance can make sense if you own even a few pieces of fine art or other valued objects.
Consider this type of policy if you have any of the following:
- Unique items that would be difficult or impossible to replace
- A collection of items whose value would fall if one piece became damaged or lost
- Art that you lend to exhibitions or museums
- Items that are delicate, fragile or very old
- Valuable items that you keep in storage
Reach Out To A Specialty Insurance Broker
Whether it is part of a diversified investment strategy or a hobby, it is essential to protect your art collection. Speak to the Specialty Insurance brokers at Southern States Insurance to find insurance that is the right fit for your treasured works. Give us a call at 888.971.6304 or request a quote online today.