Art Insurance

While high-end art theft might seem like something out of Hollywood, it's much more common than you think. The most famous art theft (also referred to as "artnapping") occurred in 1911, when the Mona Lisa was stolen from the Louvre in Paris. It was later recovered, when a museum employee was caught two years later. Because the piece was deemed "inestimable," it was also not insured. Many art museums will only insure their most valuable pieces, as paying for insurance on every piece of their collections would be prohibitively expensive. For the average art collector, buying art insurance is truly a no brainer. Thieves will target art collectors, both public and private, because of the huge payout on the successful theft and sale of a single piece. Obviously most art pieces are light weight and easy to transport, making it one of the easiest targets for would-be thieves. Selling the art is much more difficult, as almost all auction houses demand proof of provenance. Well-known and rare pieces of art are easily tracked, but devious collectors may buy a piece even if they know it to be stolen. But if a thief can make several thousand dollars in one night, apparently the risk is worth the reward.

Security in art museums has become more advanced over the years, with a number of organizations coming together to raise awareness of art theft and improve upon existing security measures. A number of world renowned museums, spearheaded by The Smithsonian, along with insurance companies, non-profits, and other cultural institutes meet at yearly conferences to offer insight and solutions.

For the private collector, art insurance can be expensive. Theft is usually a secondary thought, but it often is bundled with damage insurance. Water and fire damage are the most common claims in the world of art insurance, and most policies will also cover restoration costs if the piece is not completely ruined. It's often a good idea for artists to invest in art insurance, who need to protect their livelihood while transporting or storing their pieces. Many artists will loan their pieces to studios or private collections for exhibitions. After it's out their hands, who knows what could happen.

The first step in insuring your art is having it appraised. This will help you determine how much a single piece is worth, as well as your whole collection, and give you the information you need to decide whether you should go to an insurance company specializing in art, or just add additional coverage to existing policies.

Added to home insurance, standard art damage and theft insurance policies will generally cost $1-2 annually per $1000 of coverage. There are a host of insurance companies who specialize in art collections, which is ideal for those with large private collections. Considering the amount of money already invested in these collections, it makes all the sense in the world to at least partially insure your collection. These specialty companies will also customize your art insurance policy, and specific details and costs can usually be negotiated.