Today, works of art are considered a profitable investments. Indeed, they are expensive and constitute a long-term investment. However, their allure also means they can be stolen. Or they might be inadvertently destroyed. Thus, it is important to insure your art. Your art collection may also be of much greater value than you think. That is another reason you need art insurance. In this article, we will get to know what is covered under art insurance.
What is art insurance?
Since art is not covered under home insurance, you need to purchase a specific art insurance policy. Whether you display your high-priced possessions or keep them safe, art insurance is a must. You can insure art that you have purchased or inherited or received as a gift.
Art insurance offers you coverage from damage or theft of your prized art possessions. So, if your art collections suffer damage or are stolen, the insurance provider will offer appropriate compensation.
What does art insurance cover?
Art insurance policies cover different items, including:
- prints and photographs
- statues and sculptures
- antique furniture
- clocks and barometers
- books and stamps
- dolls and toys
- medals and militaria.
Click here to know what is not covered under art insurance.
Case study: Buying insurance for inherited artwork
Salma inherited an antique rug from her great-grandmother. When she found out about it, she had no idea if the rug had more than sentimental value. So, she contacted an expert to get a valuation on the rug. After a thorough examination, the expert informed her that the rug was worth Rs 15,00,000 and was from the 1800s.
When Salma realized the high value of the rug, she decided to insure it against theft. Because it was so old, she also worried about possible damage. The art insurance company assured her that although the rug was a personal item, it could easily insure the rug. They then provided a quote for the insurance premium. Since Salma found the premium and the terms of the insurance reasonable, she insured the rug.
Case study: Insuring artwork when a formal valuation is unavailable
Hayek had a collection of antique books gifted by her grandfather. Since there was no market for these books, it was difficult to get a formal valuation. The insurer asked Hayek to suggest what she thought the value ought to be. Hayek felt that the books were worth about Rs 10 lakh and the insurer accepted the valuation on an agreed value basis.