Art Loss Insurance Claims
It is important to protect your fine art against loss or damage. Having your works of art professionally appraised is absolutely necessary for adequate coverage. A great place to start is the Art Loss Register (ALR), which is an evolving, computerized international database that contains information about lost or stolen art, antiques, and collectibles. Operated by an independent London-based corporate company, ALR provides services pre and post loss. In the instance that your fine art is lost/stolen/destroyed, have an art appraiser determine replacement value.
Stolen, damaged, or destroyed art is cause for an art loss insurance claim. If the art has been damaged and not lost or destroyed, a qualified fine art conservator can assess the current condition of the piece. There are many factors that can contribute to the overall value of a piece of art. From the artist, to the condition, to the rarity of the piece, and more, all of these variables affect the value.
Art can increase in value or depreciate due to several varying conditions. Because of this, coverage in art insurance policies might increase or decrease accordingly as well. Keeping your insurance provider aware of any changes/updates is crucial in terms of coverage.
The largest single loss to the art market was due to Hurricane Sandy, and victimized artist Peter Max. Specializing in graphic art, Max’s warehouse located within the Chelsea district in New York was flooded by Hurricane Sandy and resulted in over $500 million in damaged art. This loss affects the value of Max’s remaining artwork.
If you have even a piece or two of art you treasure, you should evaluate if you have adequate insurance. It cannot be assumed that because you have insurance on your home, condo, or business that your artwork will be paid in the event of the loss. Many policies have limitations or exclusions.