What Does Fine Art Insurance Cover?

Many people appreciate art, visiting galleries and museums to view treasured works. Other people show their appreciation by collecting art. Art is often costly, and any damage could be catastrophic to its owners. Sometimes, collectors can use homeowners insurance coverage to replace lost, stolen or damaged art. However, some individuals have more extensive fine art collections, and there are often limits that prevent owners from recouping the entire value if something damaging happens. Many insurers can only offer limited coverage because their risk is too costly, so finding an insurer for a more significant collection can be difficult. Luckily, Clockwork Insurance Services provides the specialized fine art insurance that you may need to protect your fine art piece or more extensive collection.

How Is Fine Art Protected?

A fine art insurance policy ensures that artwork is protected, whether it’s kept in storage because it’s fragile or very old or hangs on the collector’s walls at home. Fine art insurance helps collectors manage their risk by protecting their collection.

Fine art policies usually cover fire, theft, and accidental damages. However, destruction due to perils such as moths, vermin, war, nuclear incidents and inherent vice (e.g., structural failure of the artwork) are generally excluded from coverage. The art world today is vastly different than that of years past. Regardless of the medium, all art may be valuable and potentially impossible to replace.

We can help determine if your art qualifies for insurance coverage.

How Do You Value a Work of Art?

Determining the value of your art can be somewhat subjective. Often, premiums and insurance payouts are determined by:

The art’s price at auction
The art’s market value at the time of a loss

Purchase price
The projected replacement cost
The declared value (an appraisal is necessary)

Because there are so many variables in determining the value of art, it’s good to know that a fine art policy is relatively affordable. The cost of your policy depends on the specific piece or collection you would like to ensure.

As art insurers, we know that art must be valued, authenticated and, most importantly, protected. Fine art insurance is a reasonable investment to protect an expensive investment for generations to come. Because a standard insurance policy is not enough, our team can advise you on specialized fine art insurance that will provide the coverage you require.

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