Building an art collection requires a lot of devotion, time, and energy, and also a substantial amount of money. Over time, the value of a carefully curated art collection is likely to increase and it’s only logical for a collector to protect his capital. Art insurance is one of the best ways to help protect your assets as a whole, but also to secure individual artworks from different types of damage.

The most common art insurance claims are theft, robbery, and damage made in transit, but each art collection is vulnerable to different types of harm. Depending on the storage, location, and the type of art itself, your art can be negatively influenced by natural occurrences, time or accidents. The most important thing is to be prepared.

Fine art insurance coverage will depend on the amount of artwork and the overall value of your collection. Professional insurers will consider the kind of art you collect and any special types of coverage you might need or want. So, if you are a serious art collector, do your due diligence and find the best way to insure your art collection.

Document Your Collection

The first step in looking for the ideal policy for your art collection, make sure that your documentation is faultless. You will need proof of provenance, purchase, and history, as well as any other papers proving ownership, sale dates, all appraisals and cost. Every piece in the collection will need to be photographed and filed.

There are many digital options to build an artwork documentation archive, but it’s always a good idea to have everything in hard copy. Many tech companies offer cloud-based collection management tools and finding the best one will also require a bit of research. Make sure your documentation is regularly updated with latest appraisal data or any other changes (in condition, for example).

Check Your Existing Policy

Before you start looking for a new policy, check the insurance you already have. The easiest way to do this is to call your broker and ask about the exclusions.

Homeowner’s insurance usually protects both your home and your belongings, while renter’s focuses on your moveable assets. Although this type of insurance might cover art as well, it will most likely not include damage repair options. Remember that your collection is irreplaceable and that your homeowner’s policy might not take this into consideration. What you need is a policy that will also cover potential restoration rather than “replacement” money. Further, some of these policies might explicitly exclude artwork and you might need a specific personal articles floater for each artwork.

Still, if your collection is already shaped and likely to grow, you would probably benefit more from a separate fine art insurance coverage anyway. Art insurance companies specialize in a wide range of policies and insurance designed specifically for different types of collectibles and one of them will definitely have the option that suits you best.

Get Your Art Collection Appraised

After you are clear on what type of coverage you already have, make sure to get a fresh valuation of your artworks. Bring in an expert and you will get a better idea of what type of insurance you will need and of the costs.

Choose the Richt Type of Insurance

There are two common types of art insurance: Title and Property insurance.

Title insurance provides coverage against a defective title and it refers to a particular piece of art. Most of the high-value art pieces have this type of insurance.

Property insurance is similar to homeowner’s insurance, but it also takes only your art collection into consideration. This type of policy can include an entire collection and it can even be an additional part of the original homeowner's insurance.

Still, the best way to decide on the precise needs for you is to contact a fine art insurance broker.

Find the Right Insurance Provider

Finding the right insurance provider is not a simple task. Make sure to shop around for offers and check what different companies offer. It’s a good idea to contact some of the biggest providers and get their quotes (and advice!), such as AXA Art Insurance, Lloyd’s of London or Collectible Insurance Services. This will give you an idea what to expect in both terms of coverage and expenses.

Prices and policy conditions of art insurance are constantly changing. While it was not strict before the 2010s, today it can mean a significant amount for the collector. Make sure that you consider every little bit of information before you decide to put your signature on a document.

Disclaimer: This article provides a general overview of art insurance. For accurate information, please contact an art insurance professional.