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One question you should ask yourself is “am I properly insured if something catastrophic happens?” ” Insurance companies often require an appraisal before providing coverage for fineart and jewelry.
The term collectionor more specifically, art collectionoften evokes thoughts of fineart and antiques. However, the qualities that make passion assets so precious to collectors also expose them to unique risksrisks often not covered by standard homeowners insurancepolicies.
I’ve included a short excerpt below and the entire article can be read online here ( [link] ) “Many people are familiar with the concept of insurance coverage in the context of car insurance or travel insurance, but knowledge about insurance coverage of personal property such as fineart or antiques is much less widespread.
You should check with your insurance provider to see what is and is not covered by your homeowners or rental insurancepolicy. You do not need a formal written appraisal to sell most fineart. The IRS Requires a formal written appraisal by a Qualified Art Appraiser for any fineart donated with a value over $5000.
Some of the most common questions advisors hear from clients about their fineart and collectibles are, “Does my homeowner’s insurance provide coverage for my artwork? A typical homeowner’s insurancepolicy affords you a little bit of coverage. Do I need a special rider?”
It can sometimes be present in insurancepolicies, although in my experience it is much less frequently encountered. The best way to determine what level of value you have in your own insurancepolicy is to pull out and read your policy documents or call up your insurance agent to confirm.
By Ray Nugent FineArtInsurers require more frequent valuation updates for FineArt items than other less dynamic markets. With FineArt the event is a secondary market auction hammer price. We have all seen the sensational headlines of “a new record auction price” for work of art.
Understand Your Homeowner’s InsurancePolicy The biggest problem I see after a devastating loss is underinsurance, meaning that homeowners suffer a loss yet fail to recover tens of thousands of dollars just at the time when they have lost everything they hold dear. At this point, you know you have at least $7,000 worth of fineart.
The insured ends up with a comparable, used property and not a new property. Replacement cost comparable is generally used for antiques, collectibles, fineart, period jewelry, among other types of property. Since the client is a publishing firm, their insurancepolicy is likely different from general homeowners.
A well-trained art appraiser is able to identify and document damage, or confirm that the artwork is not damaged. Furthermore, a fineart appraiser will document details, such as a blindmark, that may be overlooked by a general appraiser. Fires cause smoke damage, and flooding can increase exposure to humidity and molds.
Today, major insurers are well-versed in protecting collections, some offering policies specific to the type of items collected. Most standard policies will not provide this degree of specific coverage. Many fineartpolicies will even cover market fluctuations, protecting collectors up to 150% of the scheduled value.
Art Peritus recently sat down with Katja Zigerlig, Vice President, Art, Wine and Collectibles Advisory at Berkley One, a Berkley Company (WRB) to discuss the nuances of collecting and insuringFineArt. It’s also important to use a professional appraiser, like the staff at Art Peritus.
Three Insurance Experts Explain the Intricacies of Insuring Your Art Collection I am often asked by clients if they should cover their art under their homeowner’s insurance (HO) or if they should investigate insuring their art with a separate fineart collectors’ policy.
Compliance with Insurance Requirements: Many insurance providers require up-to-date appraisals as part of their coverage agreements. By ensuring compliance with these requirements, you not only meet the terms of your insurancepolicy but also demonstrate a commitment to responsible collection management.
A professional appraiser is one who has received training and area certified in the accurate assessment of value, authenticity, condition, and other important aspects of antiques, fineart, and other personal property.
The seminar opened with Casey Wigglesworth , Vice President of FineArtInsurance with Huntington T Block, who presented insights into fineartinsurance for conservators. Caseys presentation broke down insurance essentials alongside various types of insurance T Block offers.
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