Do you need art insurance? Why home insurance isn’t enough for your art collection

Once you’ve successfully selected and purchased your artwork, the final step is to retain and maintain the longevity of your investment. This often comes in the form of art insurance, an essential component of art collecting. The right insurance should be tailored to the specific type of artwork you own and your individual needs, helping you protect both the cultural and financial value of your asset.

I have home insurance, do I also need to purchase art insurance?

One of the most frequently asked questions is why art insurance is a necessity, especially for home owners with insurance. It is needed because most home insurances have a limited coverage for art, with low maximum payout limits and exclusions for certain types of damage. If you have invested in a blue-chip artist or any expensive artwork then it is highly likely that your home insurance does not offer you full protection. 

Oftentimes, you also have the option to add the value of your home contents with your artwork price included to your home insurance, however, since this is not a specialised service it can sometimes be more expensive than purchasing art insurance. Additionally, standard policies may not account for factors like appreciation in value, loss of value after restoration, or coverage during transit and exhibition. Specialist art insurance policies are designed to address these unique needs, offering broader coverage and higher limits.

It all boils down to your art and circumstances but if you have worked hard to financially invest in the art world, remember this is a small and easy step to secure that investment in the long-term.

What does art insurance cover?

The simple aim for this insurance is to buy you peace of mind and protect your growing collection from a wide range of art-related risks. This can include theft and attempted theft, damage from accidents or natural disasters like floods, earthquakes, and fires, as well as compensation for damage or loss if your artwork is kept in personal storage.

If you are likely to display your artwork at exhibitions, it is also important that you look into the insurance of your works while in transit or the protection of artworks while they are on display or on loan to a gallery, museum or collector. The basic principle is that a higher exposure of your artwork to the public can cause an increase of risk, which you would likely want to preempt and have a solution for. 

Some policies like the ones at Gallagher, one of the world’s largest insurance brokerage, risk management and consulting firms include title insurance for ownership disputes or defective title, automatic coverage for new acquisitions and coverage for artworks undergoing restoration or conservation processes. 

Where do I begin?

Start by cataloguing your collection and evaluating your needs. This means recording key details about each artwork, such as its dimensions, artist name, and medium. Once you’ve documented this information, the next step is to get a professional appraisal to determine the current value of your artwork. This formal valuation will then help you choose the right insurance policy to suit your needs.

You also have the option to sign up to Artscapy, where we guide you step by step through this process with minimal effort on your part. Our goal has always been to make art, as an asset class, more liquid, data-driven, and accessible to all. For us, making art accessible also means reducing your service costs, such as valuations, without compromising on quality.

Simply put, if you are unsure about what kind of art insurance is right for you or what the steps are towards building and maintaining your art collection, think of Artscapy as a helping hand, aimed at seamlessly walking you through this journey.