Insurance

 TITLE AND PROPERTY INSURANCE GUIDELINES

See Also: ArtlinkGlobal Auction News Advisories at:  

 http://artlinkglobaladvisory.wordpress.com/

See Also: ArtlinkGlobal Benchmarks for Designers at:  

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          Over the past three years the number of active collectors of Fine Arts tripled.  This resulted in large general pricing increases in the Fine Arts marketplace. There are two types of art insurance coverage that will protect a work of fine art: Title and Property. Title insurance insures against defective title, that the art work was not stolen or looted. Property insurance is similar to homeowner’s insuring against theft or damage.

As demand for art continues to rebound collectors who have recently bought a valuable piece of art or have a whole collection should consult this guide for insuring art.

 Some important touch points to reference are:

• Find out what your existing insurance covers: Before or soon after you buy a piece of art, “find out if you are covered under your existing policy or if you need supplemental insurance,” Jeanne Salvatore, spokeswoman for the institute, an educational organization financed by the insurance industry, said in a statement. Standard homeowners’ and renters’ insurance policies generally have dollar limits for how much coverage they provide for valuables like works of art and jewelry. Thus, “in most cases, you will need to purchase a fine art floater,” Ms. Salvatore said.
• What kind of additional coverage to get: When it comes to the additional coverage, you can either opt to insure the items individually with their own floaters to your homeowner’s or renter’s policy or buy broader blanket coverage for the art category. More expensive individual coverage comes with a number of advantages, including better proof of what you have and more coverage if an item is lost. Insurance experts I spoke with recommended opting for the individual coverage.
• Which insurance company to work with: Anyone with an art collection may want to consider getting a policy from a company that specializes in insuring art. Why? According to the Insurance Information Institute, those companies not only give advice on how best to insure the art, they’ll also have tips on how to best to protect the art from  theft or the elements. The institute recommended getting the names of such companies from a local independent agent.
• Make sure to get the art regularly appraised and keep the right records: According to the institute, you should “regularly get the items appraised to substantiate their financial value.” Having an up-to-date appraisal can help ensure that you get the correct value if something were to happen to your collection. The appraisal can also let you know when you can reduce the amount of insurance coverage to save costs..
• As for which records to keep in a home inventory, the institute recommended keeping “a copy of the bill of sale, appraisal, provenance (history of past ownership) and photographs.” Excerpted from  Jennifer S. Schultz, The New York Times

F i n e  A r t s   I n s u r a n c e   H e a d l i n e s

• In addition to all the damaged homes everyone witnessed on the news during the onslaught of superstormSandy, insurance companies are reeling from the largest ever payouts for damage to fine arts. According to Insurance Journal, the losses totaling nearly $500 million are essentially the entire art insurance industry’s annual insurance premiums. Consequently, the repercussions may be significant going forward. If you currently have fine art insured (or have fine art that needs to be insured), you will want to pay particular attention to the evolving marketplace for art insurance.
• Most standard home insurance policies have a limitation on the amount of fine arts, paintings, and similar articles that may be covered by the personal property limit. The average homeowner does not have a substantial collection of high-value artwork and the policies were designed with that in mind. As a result, the coverage provided in the standard policy can be somewhat limited. If you find that your art collection is in excess of what can be easily accommodated within the standard home insurance policy, you will need to explore more specific coverage.
• The simplest way to insure your art is to purchase a floater policy that is designed for high-value artwork. It’s possible that you can get a floater policy from your existing home insurance company and will just need to provide some additional underwriting information. However, you should also be prepared for the possibility that your current insurer may not be willing to write the coverage or that their terms and pricing may not be competitive. This is not necessarily a reflection on you, but more likely has to do with their interest in insuring these items. Each insurance company has a different appetite for different types of risk and sometimes it requires a bit of searching to find the right fit for your needs.
• A good source of art insurance information is from your art dealer. Because they deal in the medium every day, they may have information for you on special programs for individuals and might be able to offer a referral. However, keep in mind that the art dealer’s own policy is likely a commercial policy, which will be different from your personal floater. Regardless of how you source the policy, you will likely need to visit an art expert during the insurance process. Instead of simply specifying a value you want for your art, you will need to provide the insurance company with some evidence of its worth.
• With newly purchased art, the value can often be ascertained by using the purchase price and invoice. However, you should consider reviewing this on a regular basis. If your art has greatly appreciated in value, you will need to revise your policy’s limits to reflect the higher value and limit. If you do not take this step, you might find yourself underinsured. Many insurance companies will also ask you to provide them with an appraisal to support the value of your artwork.

 F i n e  A r t s  I n s u r a n c e   S p e c i a l i s t s

Valuable Articles
Chubb Personal Insurance

In the unfortunate event that your cherished valuables are lost, stolen or damaged, the last thing you want to hear from your insurer is that they are not insured for their true value.

Chubb’s Masterpiece insurance is designed to provide the best protection available for your most valuable possessions, including:

Masterpiece also offers you cover for your valuables that most standard insurers can’t match. Following are just some of the unique benefits of insuring your valuable articles with Masterpiece.

Itemised cover
This allows you to list items in your collection separately from your contents cover. This way each item you list will be insured for an amount determined by you.

Blanket cover
If you don’t want itemised cover, we can tailor a programme that covers every item under one blanket limit with specified limit per item. So if you have a loss, your valuable item/s will be replaced or repaired up to the insured limit.

Loss in market value cover
If a valuable with itemised cover is damaged and suffers a loss in market value as a result, Chubb will pay for the reduction in market value up to the insured amount.

Pairs and sets cover
Often valuable items form a part of a pair or set. With Masterpiece, if one piece of an itemised pair or set is lost or damaged, we will cover the replacement cost of the entire set. All we need is the remaining piece(s).

Automatic Coverage for New Acquired Items

With Masterpiece, immediate cover for newly acquired valuables is provided for up to 90 days, to a value up to 25% of your existing schedule of itemised valuables.

Optional cash settlement
In the unfortunate event a valuable item is irreparably damaged or lost, you can choose to take cash rather than replacing if it suits you better.

Worldwide cover
With Masterpiece your valuables are automatically covered wherever you take them in the world

AXA: Private Collections Coverage

At AXA Art Insurance Corporation, we understand a collector’s passion for fine art and collectibles as well as his or her desire for expert service, responsiveness, and confidentiality. As such, we deliver the highest standard of professionalism and expertise to our clients as well as to their brokers.

Because we have a deeper understanding of the risks involved, far superior than that of a traditional multi-line insurer, we can provide important and focused benefits. Our underwriters are seasoned insurance professionals with training in fine art. Our staff can assist with various insurance options and take the guesswork out of choosing the best coverage for our brokers and their clients.

Highlights:

• Valuation Options: Agreed Value, Current Market Value, or Current Market Value-150%
• Scheduled or blanket policies
• Worldwide coverage

TATA AIG PRIVATE CLIENT GROUP

Art Collection Management

• Customized policies: No matter how unique your collection, we will work with you to create a policy that adequately addresses your coverage needs.
• Transit supervision: We can oversee all aspects of transit to avoid common mistakes when you travel with jewellery or move your art to a seasonal residence.
• Vulnerability assessments: Our detailed reports highlight potential threats to your collection and outline solutions to minimize the risk of damage.
• Streamlined appraisals: We can facilitate the valuation process and review schedules. We can assess how your existing coverage compares to current market value and organize valuation solutions using independent professional appraisers.
• An elite vendor network: Look to us for recommendations on conservation programs and restorers, as well as fine art shippers, packers and storage facilities.
• Conservation and storage assistance: We can walk you through all of the steps related to conserving and restoring artwork in all of its forms.
• Economist and Art Historian:
• Proprietary search, authentication and strategic implementation at auctions worldwide