Insurance companies typically define fine art as something that has historic or artistic significance requiring special skills to create and is unique or rare. That can include paintings, sculptures, literature, music and poetry. Some jewelry pieces are also considered works of art. If you own any of these, you’re going to need fine art insurance to protect your investment.
It’s not just traditional works of art that need protection. It encompasses coins, baseball cards and comic books that are considered valuable collections and they can actually be worth more than the home itself. Collections can include model trains, watches and coins, along with contemporary items including LEGO sets, Breyer model horses, Hot Wheels cars, board games, action figures and video games.
The first step is to acquire provenance, which are the necessary documents to prove that the artwork is yours and its current value. That includes a bill of sale and photographs of the piece(s). You’ll also need to have the work appraised and certified by a professional with experience in the specific field that your art falls within. Don’t ask an expert in sculptures to appraise Pokémon cards.
Don’t assume that your homeowner’s policy will cover the full value of the art. A homeowner’s policy typically covers art, jewelry and collections up to a certain limit, subject to your deductible. Policy limits are typically restricted to 75 percent of the home’s coverage. That won’t begin to cover Persian rugs, tapestries or antiques.
Fine art insurance is designed so you can recoup the entire value of your lost or damaged art. If the value of your item or collection is valued in the lower end of four figures, there’s a very good chance that your loss won’t be covered and you’ll need a fine arts policy. It’s just as important to insure a single item as it is a collection.
Choose a policy that covers “all risks,” while bearing in mind that there will almost certainly be exclusions. All policies typically cover things life fire, theft and accidental damage, but not flood-related events or damage related to insects or vermin. You’ll also be required to take precautions to avoid perils related to storage, display and transportation.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487