Fine Art Collection Insurance

You may not think of yourself as a ‘collector,’ but even a few pieces of fine art, antique furniture or valued objects warrant special attention when it comes to their financial protection.

If you acquired the items solely because you love them, you may not like the idea of treating them like a commodity. However, identifying the “current market” value of your artwork can help you make smarter decisions when it comes to your personal wealth management. For example, art collections can be included in trust, estate and wealth planning. Donations of art to charities can ease your tax burden while also being a philanthropic gesture to a beloved charitable organization. Your collection can also be leveraged to get a loan, offering a discreet form of collateral. Yet these options only work if the art is in excellent condition and if the value is clearly understood.

One of the most common mistakes collectors make—especially when they’re just starting out—is to assume they can rely on their homeowners policy to cover the value of their artwork. You may not think you need separate insurance for artwork, but even the most robust homeowners’ policy will have limitations concerning fine art and other valuables. For example:

  • Homeowners’ policies generally cap limits on contents coverage. A few paintings or just one particularly valuable work may be enough to exceed those limits.
  • The value of covered items may be subject to depreciation.
  • In the event of damage, a deductible will likely apply before coverage can respond.

Even casual collectors will benefit from insurance designed expressly for artwork, antiques and other collectibles. It will afford greater flexibility and broader protection. When vetting fine art insurance policies, look for the following benefits:

  • Coverage for all types of collectibles and art media.
  • Worldwide protection, so your artwork is protected if it’s ever away from your home, and you are covered when purchasing art and antiques abroad.
  • Immediate coverage for new acquisitions.
  • Coverage for items in transit or on loan for exhibit.
  • Value-added services to complement your coverage and help you lessen the likelihood of damage or loss.

Whether you buy for aesthetic or investment purposes, the loss of art—through partial damage or total destruction—requires time, money and planning for conservation or replacement. Proper artwork insurance, updated appraisals and thorough risk management make the foundation of a thorough art/asset protection plan.

Last updated: Friday, April 28, 2017

Copyright © 2020 American International Group, Inc. All rights reserved.

AIG Private Client Group is a division of the member companies of American International Group, Inc. (AIG). Policies are underwritten by member companies of AIG, including AIG PROPERTY CASUALTY COMPANY. This is a summary only. It does not include all terms and conditions and exclusions of the policies described. All references to claim settlement information are based on the loss being covered by the policy and are subject to change without prior notice. Please refer to the actual policies for complete details of coverage and exclusions. Coverage and supplemental services may not be available in all jurisdictions and are subject to underwriting review and approval. Services provided by third parties are not guaranteed by AIG Private Client Group and may be discontinued at any time.

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