Everyone has one hobby or the other, and one of them is collecting things – it can be anything, coins, dolls, collector cars, antiques, arts, or fine wine. Those who love collecting things know it is hard to imagine anything happening to your belongings. What you can do to keep your precious belongings safe is to insure your art collection.
In what situations do you need art insurance?
There occur many situations when you would be grateful for your art insurance. Some of the scenarios are the following:
- Damage caused to your art collection by an unfortunate event
- Collection destroyed by a home fire
- Your collection got stolen in a burglary
The above-mentioned scenarios are the worst that can happen. Because art pieces are valuable with high dollar values, protecting them with insurance gives you much-needed peace of mind.
Documentation required
Before you go for art insurance, you need to arrange the documents associated with the art purchase. The documents should underline ownership proof, bill of sale, photographs, and replacement estimate. All of these documents deliver the required information to the insurer.
Are you already protected?
Are there any chances that your collection is insured already? Well, it is through homeowners insurance that includes, antiques, arts, collectibles, and other valuable things.
Policies indeed cover your art collection, but the coverage is limited and may not cover your whole losses.
When you insure your art collection, you get sophisticated coverage. Also, you can buy special coverages for a specific art piece. An art insurance specialist can help you with all of this to find the right coverage taking the value of the items in mind.
Determining the coverage amount
It doesn’t matter whether your collection is casual or exquisite, there exists different coverage accordingly. Before deciding on the coverage amount, you need to ask some questions to yourself, including:
- Does your collection contain contemporary paintings?
- Do you have fine works of old masters?
The insurer also looks at several indexes to give you suitable coverage.
Being honest
Insurers can only provide the right coverage if you are entirely honest about your belongings. If details are not truly correct, it can lead to loss of coverage.
Art as an investment
There are many ways you can invest in your art. One of them is to rent your art pieces to individuals or companies. It gives you dual benefits – one, the value keeps increasing as it ages, and second, it generates income.
Whatever the case is, insuring art is vital. If you don’t have any idea, take professional guidance from reliable companies.
