What is art insurance?

Art insurance is a specialized form of coverage designed to safeguard your fine artwork against potential risks and losses. A comprehensive art insurance policy offers financial protection in the event of theft, accidental damage or other unforeseen circumstances for a wide range of collections, including:

  • Paintings: Works created with various mediums such as oil, acrylic, watercolor and mixed media.
  • Sculptures: Sculptures made from materials like stone, metal, wood, glass and more.
  • Drawings: Valuable sketches, charcoal or pencil drawings and pastel works.
  • Prints and editions: Limited edition prints, lithographs, etchings and other printmaking media.
  • Photography: Valuable film prints, digital prints and vintage or contemporary photographs.
  • Fine art collections: Curated assortment of paintings, sculptures, drawings and prints.
  • Antiques: Valuable antique furniture, decorative objects and artifacts.
  • Fine art Jewellery: High-end Jewellery pieces that are considered works of art, such as pieces with significant artistic value.
  • Ceramics and pottery: Delicate ceramic or pottery artworks, including vases, bowls, figurines and other sculptural pieces.
  • Textiles and tapestries: Valuable textiles, rugs, tapestries and carpets can be insured to safeguard against damage or loss.
  • Installations and site-specific art: Large-scale installations, site-specific art and outdoor sculptures can also be covered by specialized fine art policies.

It’s important to note that art insurance coverage typically offer either blanket or scheduled coverage options. Blanket coverage provides a total coverage amount for your collection as a whole, while scheduled coverage itemizes each individual piece and its corresponding value. Blanket coverage may be more suitable for larger collections with a variety of lower-value artworks, while scheduled coverage is ideal for highly valuable and unique pieces.

Determine the value of your art collection

Before deciding how to insure your fine art collection, it’s essential to determine its accurate value. A proper appraisal of each piece will provide a foundation for determining the appropriate comprehensive coverage. There are a few different ways to assess the value of your collection, the first of which is by current market value — a commonly used method that estimates the price a buyer would pay for a similar piece in the current art market.

Replacement value, on the other hand, accounts for the cost of replacing an artwork with a similar piece of equal value. And agreed value allows you to work with an expert appraiser to determine a value that both you and the insurance provider agree upon. You can find a qualified appraiser through organizations like the American Society of Appraisers or the International Society of Appraisers.

Choose the right art insurance policy

When selecting a fine arts insurance policy, the first thing to ascertain is whether the coverage limits on offer align with the overall value of your collection. Deductibles and premiums are also critical considerations. A deductible is the amount you must pay out-of-pocket before your insurer covers the rest. Higher deductibles generally result in lower premiums, but it’s important to strike a balance that suits your unique collection, finances and risk tolerance.

To be sure to find the best possible coverage for your needs and really come to understand how to insure art, it’s crucial to work with a well-versed insurance broker who understands the particular risks associated with fine art collections. Our experts possess the knowledge and experience necessary to find tailored coverage that protects you from any potential risks that could jeopardize your investments. Don't let your passion and investments go unprotected. Make art insurance an integral part of your collector's journey and take action today to safeguard your valuable collection.

Learn more about HUB’s art insurance and private client insurance offerings.