At the London School of Business’ Art Investment Conference, Borro learned about how artwork can be insured to help avoid its value being disrupted. Art should be protected in order to keep its value as high as possible, but it’s also supposed to be enjoyed. Don’t just store it away in a warehouse for security purposes, there are other means to protect it and art insurance is one of them.
What Should You Consider When Insuring Art?
Make sure you get the most suitable cover. Fine art investments are quite unique when it comes to insurance so it’s best to find the most appropriate cover. Your typical home insurance wouldn’t necessarily include fine art, so it’s critical to be very discerning. You also need to make sure you get the right amount of cover. Why? Well, the value of art fluctuates, so you’d have to review your policy with the provider each year.
What Does Art Insurance Protect Against?
Often when people think of insuring their art, they often consider protection against theft to be one of the primary purposes. Theft does happen, but it is not at all as common as we think. It is accidental damage that should be our key concern. This can include the art work falling, facing water damage or even fires. The latter is probably one of the most difficult to restore. Though it may take on average 10 years to resurface, stolen art is often recovered; whereas fire damage is typically insurmountable. Artnet’s Kenny Schacter recently detailed how pieces of his collection were destroyed during home fire.
What Information Do You Need to Get Art Insurance?
When insuring your art, you’ll need all the right documentation. This includes:
- Proof of provenance
- Proof of current value
- Proof of ownership
- Bill of sale
- Replacement estimates
Why You Should Treat Art Like Other Investments
You make sure that your investment in your home or your car are secured by getting insurance for them – why wouldn’t you insure your investment in art? If you’re not sure where to start, a simple online search for “art insurance” will reveal the agencies that offer it. Call some brokers and start asking questions – they’ll be able to help get the most appropriate cover for you. That way, if something does go wrong, your investment in those assets is protected.