Author:  David Ward
Date:  05/22/2009

Once you’ve taken stock of your art collection it’s time to decide what type of coverage best fits your needs. Many people with modest collections believe that their homeowner’s policy is enough to cover their art, but in reality many standard policies are very limited. To truly cover even the most modest of collections, collectors should consider advanced protection either in the form of Fine Art and Collectibles Riders or Blanket/All Risk Art Coverage. What type of insurance you need will depend on what artworks you own, the amount of coverage you need and how active you are as a collector.

Homeowner’s Insurance for Art Collections
Homeowner’s insurance is the most limited option for art insurance, but could be a viable option for novice collectors. The main benefit of using homeowner’s insurance to cover your art is that there is no additional cost to unless you make arrangements with your agent to increase coverage. But if you have more than a few pieces or if you suspect that several of your pieces are worth more than $2,500 each then homeowner’s insurance won’t adequately cover your artwork. Below are some key limitations of relying on your homeowner’s insurance to protect your art.

• Maximum coverage is usually 50% of home value


• Often carry high deductibles (up to $25,000)


• Sublimits typically $2,500


• Does not cover breakage of fragile objects such as glass


• Does not automatically cover new acquisitions


• Does not include worldwide coverage

• No deductible


• Covers breakage for fragile items


• Worldwide coverage


• Automatically covers new acquisitions


• Covers up to 150% of predetermined value


• Should have professional appraisal every at least 5 years

• Covers a predetermined lump sum amount


• No deductible


• Covers breakage for fragile items


• Worldwide coverage


• More burden on collector to provide appraisal amounts for each artwork


• Allows collector to insure an amount less than the collection’s value to keep premiums low