Insurance claim catastrophes can be a real mess and can continue for many months, draining your energy and time. The problem is that art owners tend to think that they will never need to make an insurance claim, so they forgo diving deeper into insurance conditions before purchasing it. In this blog post, we explain what factors may affect art insurance conditions and premiums to help you avoid unpleasant surprises.
Calculating Art Insurance Cost
Art insurance conditions and premiums mainly depend on the value of an insured art piece. Certain artworks may command higher premiums to secure adequate coverage in case of accidental damage or loss. Art pieces may also need different types of insurance, e.g., relocation insurance, storage insurance, and installation insurance.
The cost of insurance will depend on the evaluation, which considers the object’s provenance, market demand, and popularity and reputation of an artist. Being aware of these aspects is vital for art owners and collectors to be able to negotiate favorable insurance terms and ensure sufficient coverage.
Susceptibility to risks is another factor affecting art insurance conditions. For example, old oil paintings or fragile antique sculptures may appear to be more expensive to insure because the risk of their accidental damage is very high. The cost of insurance may also depend on the security measures taken in the house, storage place, or venue where the object is exhibited. The lack of robust security measures will result in high premiums. For example, if you plan to store your art objects in a garage shed that is not properly equipped for that purpose, you will likely need to pay a large sum for insurance.
Besides, the history of previous claims directly affects the insurance conditions and premiums. It suggests that the insured object has a high risk of damage, inducing insurance companies to apply more restrictive coverage terms.
How to Avoid Insurance Claim Issues
There are several tips that we recommend following when dealing with insurance:
- Use up-to-date valuation
- Always check limited liability clauses in a contract
- Ensure there is no uninterrupted cover during the buying/selling process
- Keep all documentation in place
- Keep track of security conditions in the storage or exhibition space
If you find it all too difficult to handle, there are insurance consultants, whose work is to guide you through every step of the way and avoid any issues with insurance companies. Hiring professionals is particularly useful if you own valuable, expensive, or rare objects.