Insuring Artwork and Antiques

If you own valuable artwork or antiques, it's essential that you purchase fine arts insurance, since the value of these items generally increases year after year. Some collectors assume that it's not worthwhile to purchase insurance on one-of a-kind items that can't be replaced. However, a good insurance policy can help to offset the loss if your collectibles are lost, stolen or damaged.

Insurance for artwork may not be a part of your traditional homeowners insurance policy, or may have a special limitation. You should contact your insurance company or agent to find out if you'll need to purchase a separate rider, or if you'll need to go with a company that specializes in insuring collectible items. They can advise you how to proceed.

Documenting Antiques and Artwork

When you decide to purchase insurance for your collection, you must document each item individually. Provide your insurance company with the following, keeping copies for yourself in a safe place as well:

• At least one photograph of each item
• Copies of original purchase receipts
• Current, authorized appraisal values of each item.

A specialized art or antiques appraiser can evaluate and record the value of each of your items. Be sure to keep this information, along with copies of the photographs and receipts, in a safe place.

How Much Insurance Do You Need?

Since this coverage is traditionally written on an agreed-value basis, the value of each item will be dictated by the appraisal and receipt. Evaluate your artwork and antiques carefully, and consider purchasing as much insurance as you can on one-of-a-kind and particularly valuable items. You'll likely find that the value of these items goes up each year, so you may need to re-evaluate your coverage every few years to be sure it adequately covers the current market value.

In addition, many insurance companies will offer discounts for insuring art or antique collections if the homeowner has a security system installed. When you're choosing an insurance policy, be sure to ask if installing this type of system will reduce your premiums. It may be a worthwhile investment.