As my wealth increases, I find it important to surround myself with people who know about growing and maintaining their investments. From my trusted circle, I have learned many things, including how to protect my investments through insurance.
This protection extends to my artwork.
I believe that purchasing art as an investment is a smart move. In fact, over the past two years, my personal art collection increased by 20 percent. But would you believe me if I told you that up until recently, not all of my artwork was correctly insured?
It’s true: In order to properly insure your assets, you must first know its value so that if anything happens, you have adequate coverage.
That’s why I sat down recently with a Fine Arts Specialist in Washington, D.C., to get tips that I can share with you to better protect your art investments. While this Specialist works with High Net-Worth Individuals — clients with art collections valued at $1 million or more, these three tips are helpful reminders for art collectors at all price points.
1)Insure Your Art as Soon As You Purchase It
You would not dare drive your new car off the lot without auto insurance, and most would agree that health insurance is equally important. But do we think twice about other investments?
The insuring of an acquisition is one of the most overlooked aspects of the art collecting process. Often we have taken so much time researching, deliberating, and then paying for our art, that we forego protecting it with proper insurance. While it may seem like it is unnecessary, most people see the benefit of coverage when it’s too late. I want to make sure that you’re not one of these people.
2)Depending on The Value, You May Be Able to Add Your Art Existing Policies
If you’re new to collecting, the easiest and quickest way to protect your art is to add it to your current renter’s or homeowner’s insurance policy. Often it is a quick and easy process that requires a short call to your insurance company informing them of your purchase. Usually, the insurance representative will ask you for documentation of the value of the work. This can be done by your sales receipt and/or an appraisal. This is the best option if your collection is valued under $100,000.
3) Appraise Your Work Every Two to Three Years
I look at my art as an investment. As such, I frequently have my art valued. Insurance companies need this updated information in order to increase the value of your policy. Every two or three years is a good rule of thumb, trust me, you will thank me later.
Here at The Agora Culture, we strive to help you along your journey as art lovers and collectors. Protecting and valuing your art investment takes very little time, but it can save you tremendously in the long run.
Feel free to contact us for recommendations on insurance companies or art appraisers in your area. Or if you have a personal question, drop me a line at email@example.com.