Why Every Art Collector Should Consider Insurance...
While it's impossible to anticipate every potential risk, having the right insurance in place offers invaluable peace of mind when it matters most.
When it comes to insuring your art collection, there are many questions to consider. Whether you're safeguarding works by emerging artists or investing in Old Masters, each piece is a valuable asset that deserves protection.
Does My Home Insurance Cover My Art Collection?
Homeowners and contents insurance typically cover the rebuild cost of your property and its contents in the event of accidental or irreparable damage. While this coverage offers some peace of mind, many home insurance policies do not include comprehensive protection for all items. Certain items, like diamonds and art, are often excluded or restricted, mainly due to the varied nature of what constitutes "art" and how it’s produced and certified.
For this reason, it’s essential to have specialised art insurance to properly cover your collection. If you're relying on your home insurance, it's crucial to review the policy's exclusions to ensure your artwork is adequately protected.
What Are the Benefits of Art Insurance?
Art insurance provides several key benefits. If your collection is stolen, the policy allows you to authenticate the pieces using the insurer’s records. If your artwork is lost or damaged, having the right insurance ensures you can recover its full value, offering peace of mind and allowing you to fully enjoy your collection without constant worry. With the right coverage, you'll rest easier knowing your investments are safe.
How Do You Begin Insuring Your Art Collection?
To get started with insuring your collection, you first need to establish proof of ownership and the current value of each piece.
Key documents include:
- Proof of ownership
- Bill of sale
- Replacement estimate
- Photographs of the artwork
- The most recent appraisal
Typically, you would receive a bill of sale—important for confirming the market value at the time of purchase. Original artworks may come with a valuation certificate, while limited editions and sculptures are often accompanied by a certificate of authenticity (COA), ensuring the authenticity of your pieces is well protected.
How Often Should You Have Your Art Evaluated?
There is no set rule for how often art should be re-appraised, as this depends on factors like market fluctuations, the type of artwork, and its insurance needs. However, at Hancock Gallery, we recommend re-appraising your collection every 3 to 5 years. This ensures your artwork’s value stays aligned with market conditions and that your insurance remains up to date.
Appraisals are especially important if:
- The Art Market is Volatile: When the value of specific artists or styles fluctuates, an updated appraisal helps maintain accurate coverage.
- You’re Buying or Selling: Having an up-to-date valuation is crucial for fair transactions.
- Insurance Updates are Needed: Insurers may request updated valuations to adjust coverage limits or premiums.
- The Condition of the Artwork Changes: Any damage or restoration can affect the value, requiring a re-appraisal.
Ensure that your appraisal is performed by a qualified professional with expertise in your artwork’s genre. By keeping thorough documentation, such as prior appraisals, certificates of authenticity, and purchase receipts, the process will be smoother and more accurate.
By taking the time to consult with specialised art insurers and keeping your appraisals up to date, you can ensure that your artwork is protected and its value maintained for years to come.
If you'd like to discuss further, our experts are on hand and ready to assist. You can contact us via email, phone, or visit us at our gallery in Newcastle. We’d be happy to provide a valuation to help you insure your art collection.
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