How to Insure Your Fine Art Collection

Building a fine art collection is a popular way to invest wealth into something of value and beauty. Protecting that investment is essential if you are creating a fine art collection. The right insurance coverage can ensure adequate compensation if you experience a loss, theft, or damage within your art collection. Obtaining proper coverage takes careful consideration.

Does Your Fine Art Collection Need Insurance?

Your current insurance coverage is sufficient for your art investment. A homeowners policy includes personal property coverage that you could use to claim an art-related loss. Unfortunately, homeowners’ policies limit personal property loss coverage, not only in total value but also in the reimbursement value per item. It does not account for high-value belongings. For that, you need separate coverage.

If you have artwork that people know you have, that is a theft risk. If you move your artwork from property to property sometimes, you risk theft or loss of those pieces in transit. Further, delicate pieces may degrade or weather over time. Coverage specific to those needs can help.

Do You Need Specific Records To Insure the Collection?

Most insurance carriers require documentation of each piece, including pictures, descriptions, and appraisal records. Suppose you have certificates of authenticity or provenance records for any piece; it also adds to the value. Document everything as thoroughly as possible to support the insured value and resulting claim amount in the event of a loss. It ensures a comprehensive acceptable art protection plan.

Are There Options for Your Coverage?

Once you understand why you should consider insuring your fine art collection, choose the right coverage. There are a few options that your carrier might present. An all-encompassing policy provides full coverage of each piece for many types of losses and hazards.

Some policies are customizable to tailor coverage for each specific piece, while others allow you to adjust coverage periodically with updated appraisal records. It helps ensure that you receive compensation for the actual value of the piece, especially if it continues to appreciate over time. Consider the approach that best fits your collection and the investment before you buy.

Do You Need Title Insurance?

Title insurance is an essential element in protecting fine art. If an error occurs in the title search and ownership history of a piece and that error interferes with your ownership, title insurance may apply. For example, this would protect you if you invested in a piece someone stole before you owned it. The art world is unpredictable and full of many high-value pieces, so protect your interests as comprehensively as possible.

Do You Appreciate Your Fine Art Collection?

As you build your collection, you will gain an affinity for certain pieces, but each one deserves recognition for its value and investment. Protect your financial interest in your fine art collection with the right insurance plan. Your carrier can help you choose the additional riders, high-value collection policies, and types of coverage for each piece.

About Provident Protection Plus

For more than 65 years, Provident Protection Plus has served the businesses and residents across several states nationwide. Today, we are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution. To learn more about our coverage options, contact our specialists today at (888) 990-0526.