If you have art assets, you must have appropriate, up-to-date insurance. If your art collection is valuable, having a fine arts policy rather than including art on a homeowner’s insurance policy may be worth the added expense. Unlike a standard insurance policy that may include art coverage, a fine art insurance policy has significantly fewer exclusions. Reputable fine art insurance companies include Huntington T. Block and Chubb Art Insurance. 

Fine art insurance typically excludes losses caused by terrorism, vermin, inherent vice, and normal wear and tear. Inherent vice refers to the natural tendency of certain materials, such as metal and wood, to deteriorate over time. These risks are particularly relevant to outdoor artworks, which are often exposed to the elements and made from vulnerable materials that can rust or rot. ¹

Unlike most homeowner’s policies, fine art insurance protects against damage regardless of location, which is an important factor if you loan works and/or move them from one location to another. When you are arranging transport for your art, your art should be insured ‘in transit’ under at least one insurance plan, ideally a fine art insurance plan. If the art is being loaned then it should be covered ‘clou a clou’ (nail to nail). This means that the work would be covered from the time that it is removed from your home, during transit, during the exhibition, and until it is safely back on your wall. This coverage would be included in your fine art insurance policy, but usually not by your homeowner’s policy. Generally, when museums borrow art, they cover insurance and transportation costs. Some art insurance companies have museum loan consultation which includes advising on the risks of transit to the museum. Transporting art has risks but having your art on display in a museum may increase its value and allow others to enjoy the work.

Fine art insurance policies typically spell out the property insured, term of coverage, perils insured against, limits of liability, what to do in case of partial loss or currency fluctuation, and policy exclusions. They typically also include arbitration and cancelation clauses. Whether you have fine art insurance or home insurance that includes art protection, you can add rider insurance to your plan to increase or decrease your insurance for a period of time. For instance, rider insurance may be purchased to increase your travel insurance for a week while your art is being moved. 

“Itemized insurance” lists every piece by artist, title, medium, dimensions, and date of creation, and covers the works of art for an agreed value. When you itemize your artwork, some insurance companies will cover the listed amount, others may pay more if the value has increased, and some may offer a cash payout if the piece is irreparably damaged. Insurance agents may tour your space and require you to add UV glass, lift your art a few inches off the floor, remove certain art from direct sunlight, or store it in a climate-controlled environment. Insurance prices may be influenced by the location of your home, the security system in place, and how you frame your work. In addition to UV glass, some works may need archival matting and special framing, as bad frames can damage the work. If a fine art policy is not the right fit, you can contact your insurance company to add a schedule to your homeowner’s policy and discuss deductibles and appraisals. 

Additionally, when moving art into a building you do not own, some property owners require shippers to have a certificate of insurance to protect the building owner from damage resulting from the move. Shippers generally won’t cover insurance or extra costs such as installation and packing or crating, but if you loan your work to a museum, the museum will typically cover those costs. 

Both home insurance and fine art policies assign certain responsibility to artists and collectors. For example, some insurance providers require the installation of a home security system, placing fragile artwork in secure areas or locked display cases, and storing the art in climate-controlled environments and elevated above the ground, to minimize the risk of water damage. For light sensitive works, pieces may be required to be framed with museum glass or stored in a room with protective shades or curtains. For instance, Christie’s Fine Art Insurance was sued for contributory liability for negligent art storage during Hurricane Sandy. Plaintiffs argued that Christies breached their regular duty of care, and the New York Supreme Court held that Christie’s’ waiver of liability was unenforceable. XL Specialty Ins. Co. v Christie’s Fine Art Stor. Servs., Inc., 137 A.D.3d 563 (N.Y. 2016). The right insurance plan, along with proper precautions, can help safeguard your art investment against both foreseeable and unforeseen risks.