As we make our way through life we tend to be gifted and collect some beautiful things, and often those are pieces of art. We enjoy art for its beauty, the way it makes us feel, and the statement it makes. Our collections reflect personal tastes and interests, show the places we’ve been, provide a sense of ownership and accomplishment, and, if we’ve made good choices, can potentially even be an investment opportunity.
Those who own art should ask their insurance broker or provider whether it is properly covered. There are generally two ways to obtain art insurance: as a rider under your home insurance or as a separate policy.
First: Know the value of your art
You may not need a full art appraisal in order to insure your pieces, however appraisals are beneficial for accurately determining the value of your art. Appraisals are typically recommended every one to five years, depending on the type of art and changes in its market value.
Ensure your appraisal is done by someone who is certified through the Canadian chapter of the International Society of Appraisers. Your insurance company should be able to recommend a respected appraiser.
Your appraisal should include the reason why the art is being appraised (ie: for insurance purposes), a statement of the appraiser’s objectivity and qualifications, a description and identification of the artwork and its condition, plus provenance if applicable.
The value should not be estimated, but determined as a number. How the appraiser reached that number should be detailed and supporting documentation provided. The appraisal should be signed, and be sure to keep both paper and digital copies as backup.
Inventory your art
In addition to your appraisal, you will want to create an inventory of your artwork including details such as:
- The name/title of the work
- The artist’s name
- The artist’s birth/death dates
- A description of the piece (materials used, the medium, the subject matter)
- Dimensions
- A description of the display, including frames and mounting
- The artwork’s condition
- Any distinguishing features, marks, or inscriptions
- The date of purchase and the receipt
- Any certificate(s) of authenticity
- Any references in books, catalogues, news stories, etc.
- Photos from various angles
Again, keep both digital and paper backups of your inventory and ensure at least one set is kept in a secure place. The more information you have, the better, should you ever have to file an insurance claim.
Art insurance as part of your home insurance
Your home insurance policy more than likely contains coverage for your artwork, but be aware that the amount is subject to special limits. If you have high-value artwork, be sure to check what this amount is in your policy. It varies by insurer and can range from $2,000 to $6,000 or more. If your art is valued below your special limit, it will be covered. However, if its value exceeds the limit, you won’t have full protection.
Also check for exclusions noted in your policy. For instance, some policies specifically exclude the theft of artwork. Some policies also do not cover for repairs or restoration if your artwork is damaged in an incident such as a fire. Finally, pay close attention to how art is defined in your homeowner’s policy, as it is likely limited to certain types and kinds.
You have the option to purchase a special extension, known as a “floater” or “rider,” to enhance the protection of your art collection through your home insurance. This extension typically raises the per-item limit to better match the value of your artwork. It may also cover hazards, such as theft, that may otherwise be excluded by your home insurance.
Art insurance as a separate policy
Art insurance can be sold as a separate policy and is ideal for those with valuable pieces or collections. Typically, art is considered valuable if worth over $50,000, but it can also include items that are irreplaceable if damaged or destroyed. Art insurance is especially advisable if you treat art as an investment or actively collect.
Art insurance policies generally offer:
- Higher limits
- Coverage for when your artwork is in transit, being loaned out, being stored, or being displayed
- Provides a broader definition of “art”
- Protects against a wider range of risks
- Appraisal and claims supports
There’s no assurance like good home insurance
Lane’s Insurance is a leading Alberta insurance broker offering the very best in home insurance coverage for complete peace of mind. We work for you, not the insurance companies, and therefore can provide non-biased, expert advice and a number of different options from Canada’s most respected home insurance providers. At Lane’s, you will be partnered with a specialist who will be your personal contact for all things insurance. Contact us at our Calgary, Edmonton, Banff and Alberta offices.
