WEDNESDAY, JULY 6, 2022
Many people own fine art and display these works in their homes along with their other belongings. Fine art is sometimes a person’s most valuable possession. If the artwork has significant value, it can be challenging to replace, or it could be a substantial loss if the piece were damaged, lost or stolen. Insurance coverage may protect your prized investment and give you peace of mind.
Sometimes standard homeowners insurance may cover a personal art collection, but that’s not always the case. There are other options for coverage that might give you better protection for your valuable artwork.
It’s crucial to determine the value of your fine art before purchasing the appropriate insurance coverage. The first step you should take is to hire an independent appraiser to help establish the value of your artwork. Give this appraisal to your insurer along with the necessary documentation to certify that you own the piece and can obtain the right insurance coverage.
Does Homeowners Insurance Offer Enough Protection?
Homeowners insurance typically includes personal property coverage, which provides enough protection for certain hazards, such as fire or vandalism. However, personal property coverage typically provides a limited dollar amount for fine art. If your art is more valuable, you may have a gap that leaves you vulnerable to a significant financial loss. Additional insurance can help supplement your homeowners insurance to give you more robust coverage.
However, before you obtain insurance coverage for your fine art, you want to determine if your piece (or collection) qualifies to be insured as fine art since the definitions of “fine art” vary by insurer. A few considerations your insurer may use to determine the appropriate type of coverage for art include:
- If the art’s value far exceeds the value of its materials.
- If the art has historical or artistic significance.
- If the art is difficult or impossible to replace.
- If the piece is artwork that a museum might be interested in displaying.
Hill & Stone Insurance can discuss whether your piece can be classified as fine art and if you need additional coverage for suitable protection.
What Are My Coverage Options?
There are various options for insuring art, and they include the following:
- Valuable items endorsement might be added to your homeowners insurance. This endorsement may raise your coverage limit since it provides expanded protection for your personal property, like your fine art. An endorsement might cover a loss due to named perils such as fires, theft or vandalism.
- Personal articles floater (PAF) might be good if you have a high-value piece of art. A PAF lets you extend your personal property coverage on a single item basis, covering it for a specific value. A PAF might offer all-risks coverage, which means a cause of loss is covered unless it is expressly excluded. A PAF is available as an endorsement to your homeowners insurance or as a separate policy.
- Valuable items policies are separate policies from your homeowners insurance. A valuable items policy might expand your coverage for fine art with higher limits and provide worldwide coverage.
Art values change over time, so you may want to have your art periodically reappraised. When you do this, give any updated information to your insurance agent, who can help ensure your pieces have the proper protection.
Insurance enables you to repair or replace a piece of fine art in the event of covered damage or loss. And if you’re unable to repair or replace your art, you might be able to receive financial support in the form of a settlement. Most fine art endorsements can offer coverage against:
- Fire and smoke damage.
- Specific instances of water damage.
- Theft or partial theft (vandalism).
- Loss or accidental damage of items.
- Particular instances of extreme heat and humidity.
Fine art coverage offers the best protection for you and your valued art. We can help ensure your coverage is optimized to provide the best level of protection for you.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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