Why is Fine Art Collection Insurance So Important?
In a recent blog post we covered Sotheby’s auction of Edvard Munch’s “The Scream.” The pop culture icon and fine art masterpiece made history as the most expensive work ever sold at an auction at $119.9 million.
Extensive measures were taken in weeks preceding the auction. During public viewings, the artwork sat under glass seven feet behind stanchions and watched by security guards. Even at a private reception for collectors, Sotheby’s confiscated viewers champagne before they could even approach the work.
The record breaking sale and extreme precautions Sotheby’s took is a reminder of the fragility and priceless value of fine art. It is absolutely essential as a fine art collector that you take steps to ensure the pieces in your beautiful collection.
First, find out what your existing insurance covers. Standard homeowner’s policies typically have a limit that won’t cover the extent of your collection. You should regularly have your collection appraised over time. It may be the case that several artists you have collected became increasingly celebrated over the years; this can cause the value of your collection to grow considerably.
Typically, your collection will require a Fine Arts Floater policy. Typically one of the most overlooked aspects of a financial program, for true asset protection, a Fine Arts Floater Insurance program should be integrated into your policy for complete coverage and peace of mind.
When insuring your collection, it is essential to find an insurer who specializes in high-net-worth individuals, and have expertise in insuring art. At Sinclair Risk and Financial Management, our Private Client Group Services covers a range of insurance policies to protect your lifestyle, from exotic cars to fine jewelry and high value homes. We have staff with years of experience in insuring fine art pieces; they can expertly evaluate your fine art assets to recommend the right coverage and limits. Contact us today for more information.
*Note – The painting in the picture is not a destroyed painting. It is actually a piece by Valerie Hegarty. She creates unique works of art that look like burned, smashed, cracked, warped, melted, and damaged paintings.