How to Insure Fine Art

Collecting fine art can be a culturally enriching but expensive hobby. This is especially true if you build up your collection with original paintings and other art pieces, rather than reproductions. Include room in your collecting budget for art insurance for your current collection, as well as the next work on your wish list.

Instructions

Difficulty: Easy

Things You’ll Need:

• Insurance application
• Insurance policy fees
• Art appraiser

Insure Your Fine Art Adequately

1. Have your fine art appraised by an experienced art dealer or appraiser. Have a very specific idea of how much coverage you will need before speaking to an insurance agent.
2. Insure your small home collection of fine art through your homeowner's insurance policy if possible. This type of policy has set limits for the amount of money that can be claimed in certain categories. Find out whether art can be adequately covered by your existing policy.
3. Compare prices of premiums from multiple art insurers before making your final decision. Seek out a good insurance company knowledgable of the art world. Your agent will work with you to create a personalized policy based on your individual collection.
4. Include on the insurance policy any pieces of art that you own but are on loan or consignment at another location. Should there be damage, loss or theft at that location, you will be eligible for compensation.
5. Purchase "public liability" protection if your artwork goes on exhibition where many people visit the show. This protects your pieces when in transit to exhibitions as well.
6. Ask for a list of current clients from the insurance companies you are considering. Much of this information can be found on their websites. If the insurer has many current clients, especially big names in the art world, this lends credibility.
7. Fill out an application for fine art insurance coverage. Many insurance companies have a "get a quote" section on their websites, allowing you to get an idea of your premium before committing yourself.

Tips & Warnings

• Always fill out insurance applications honestly. You may be tempted to undervalue your collection in the hopes of receiving a lower insurance rate. This can backfire quite easily if you need to file a claim on your art and do not receive enough money for the item.