Art needs to insured separately from ordinary contents. Only those things that can be replaced with reasonable ease can be insured with ordinary replacement value insurance. Art is not replaceable with reasonable ease. Art is unique and original. Each art or antique item needs to be listed carefully on the policy. Updated appraisals will be needed periodically. The owner is responsible for the appraisal.
The insurer can “repair” or “replace” when damage or loss occurs. Replace means to give the owner the money amount agreed upon in the insurance contract. Repair means the insurer will provide enough money to repair the item up to the agreed limit of the policy.
Art is normally insured based on a recent appraisal. The appraisal must be done by a qualified person. The owner can insure the item at the appraised value or a lower value… but not a higher value.
The insurance company and the owner “agree” on a value. Agreed value is a legal and binding term. The insurer will pay up to the agreed value if the item is lost or damaged. The insurer will not pay more than the agreed value even if the market value has increased.
The agreed value of the art or antique item is the basis of the insurance premium charge. The basic rule of thumb is $1.00 charge per $100 of value. The actual rates can vary based on circumstances such as security and location.
Some items that are extremely valuable but not protected could be uninsurable. A gold chalice left out on an alter in a church that is not locked would be an example of an item that is uninsurable. The gold chalice should be kept in a locked compartment or safe when not in use to be insurable.
Ordinary home insurance or commercial building insurance is not designed to cover art and special items. Art, jewelry, antiques and other valuable and unique items need to be insured with fine art insurance.
Fine art insurance is known professionally as Inland Marine insurance. This is a very old term. Inland Marine insurance has developed over centuries with its own rules and limits. It has become the standard insurance for art, antiques, jewelry, antiquities and rare items that are not replaceable.
What is the importance of art insurance?
Often art is bought for a lot of money as an investment or a hedge against inflation, it is wise to insure these items in case they are stolen or damaged reducing or eliminating their cash value to the owners.
Who can buy Art Insurance?
Art insurance can be taken for various Vintage & Antique things and it can issued by various parties:
- Art Lovers
- Private collectors – individuals and corporate.
- Art Dealers.
- Art Galleries.
- Art Fund.
- Warehousing Service Providers.
TYPES OF ART INSURANCE
In this type of insurance, various things are covered by various companies. There are various types of insurance policy which are related to art. Which are listed below:-
1. Fine art insurance
2. Jewellery & Art Insurance
3. Public Art Insurance
4. Art Gallery Insurance
5. Theft Insurance
Insurance Companies Covering Art Insurance :-
Several insurance companies provide coverage for fine art:
• Chubb Group:-
Chubb’s Masterpiece® Valuable Articles policy, valuable items are covered anywhere in the world with no deductible. Whatever possessions you insure, you will have the choice to repair, replace, or keep the cash.
• Atlantic Mutual
Atlantic Mutual’s Valuables Policy provides broad coverage for fine art.
• AXA Art
“AXA Art is the only globally operating specialty art and collectibles insurance company offering tailor-made coverage solutions for private and corporate collections, museums, galleries and artists.”
• Tata AIG Private Client Group
Tata AIG Private Client Group provides coverage for fine art and rare antiques.