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Art Insurance
If you are starting to collect art or other
objects of value, consider being insured
against damage or theft. Broadly defined,
art insurance can cover such things as:
- paintings and drawings
- prints and posters
- photographs
- sculpture
- antique furniture, decorative objects, and
rugs
- rare books
- antique weapons and armor
- rare wine
- fine jewelry
- coins and stamps
- vintage automobiles
- other collectibles
Before buying art insurance,
consider the
following:
- Review the policy terms, looking closely
at the valuation method that the insurer
will use to settle a claim. Run of the mill
homeowners’ and business owners’ policies,
when they offer coverage for art, may vastly
undervalue your holdings. Rather than getting
what you could have realized at auction for
a rare vase, an antique chair, or a fine
painting, you may learn with regret that
your policy pays only enough to buy a reproduction.
See our discussion of art appraisals.
- Think of every sort of loss or damage scenario
that may occur. Examine the
policy’s fine
print and understand what is
covered and
what is not. Perhaps fire and
water damage
are covered, but perhaps not
the result of
an earthquake or a civil disturbance,
and
perhaps only if you take certain
protective
measures. Perhaps theft is
covered, but perhaps
only if you have certain types
of locks and
security systems activated.
The possibilities
for disclaimers are endless,
so take care
before you accept a policy.
- The better insurers will offer advice on
how to display and store your
collection
in order to preserve it from
physical deterioration
and protect it from damage
or theft. They
also will guide you on photographing
your
collection and documenting
its value with
appropriate paperwork. These
extra services
can be worthwhile if your collection
is of
considerable value.
- If the insurance company is not a household
name, research its financial
strength with
insurance rating agencies
Finally, if you cannot afford
to cover your
entire collection, think about
insuring just
the most valuable items or opting
for higher
deductibles across the board. |
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