Category Archives: Homeowners vs Fine ARt Policy

Art Insurance for Collectors; Schedule vs. Blanket

The Art of Collecting Art.

There’s a big difference between buying art and collecting art. Buying art is more of a random activity based on likes, preferences or attractions at any given moment while collecting art is more of a purposeful directed long-term commitment. An important step in good collecting is not the most delightful one to talk about, but it is among the most necessary, and that is to plan for the unforeseen.

As an art insurance broker, I readily come across collections that are an intricate part of retirement and inheritance planning.  It’s a great asset to pass down.  Baby boomers bought artwork for the love of the art.  Art as an investment vehicle was a small part of the decision-making, not like today which is the main focus.

In the past 15 years as the art market sales and demand took off, Art purchased 40, 30 or even 10 years ago is worth a lot.  Hence, I am seeing collector’s policy limits rise into the millions. I will explain some key differences in the type of policy offered in today’s marketplace. Art Insurance and collectible insurance demands are a new focus with some insurers. Beware, like the art world, no two are the same, read the exclusions, conditions and valuation clauses in a policy.

Understand what schedule means and its limitations, some say the maximum they will pay is what is on the schedule or schedule plus 125% or 150% and then some added or market value whichever is less.  A popular coverage is Blanket Insurance; usually, this is for the collection under $300,000. The advantage is that you are not required to supply the companies with appraisals, bill of sale or any other documentation when you bind the coverage.

Only at the time of loss, the onus of proof of value is on the collector.  This is not a lengthy process; either go back to your paperwork and ask for a current valuation from a dealer or show your work to a dealer and put the value in a letter. Both methods of either scheduling the art or using the blanket limit are tools I use when working with my clients.  Each person looks at insurance in different ways and has different requirements. Let me work with you and answer all your questions to present a program which is satisfactory to all those involved.

Visit us at ArtInsuranceNow.com to apply or Contact me at 800.921.1008 to discuss your unique situation.

William G. Fleischer CIC

Marvel Exec’s $240,000 Collection Stolen, Is Entrusted Property Covered?

A contractor was hired to repair water damage at a Sparta N.J. Township home, he was just arrested charged with theft and burglary of a $240,000 collection.

 

The contractor snatched art and Rare Comic Books, valued at more than $239,000, from Joseph Quesada, Marvel Comics’ chief creative officer and former editor-in-chief.

Authorities said Quesada hired a contractor as a handyman earlier this year, and asked him to repair damage caused by a burst water pipe. But the handyman had other ideas, he covered the property’s security cameras with towels, then he moved himself and his girlfriend into Quesada’s house.

Soon after, a friend called Quesada to ask why he was selling a portrait of his wife. Quesada didn’t know what his friend was talking about, but he did recall he kept that specific portrait in Sparta.

Fearing the home had been burglarized; Quesada and his wife went to the house and found their art collection missing, including original comic book art. This is where a separate Fine Art Collectible Policy makes the difference.

 

Theft by a person you entrust with your property is covered by the AXA Fine Art Collectible Policy, Are you covered for any fraudulent, dishonest, or criminal act or acts by employees, dog walkers, home attendants, contractors, or trusted individuals?

 

Contact us today to help insure your Valuable Fine Art and Collectibles.

 

Visit www.ArtInsuranceNow.com to learn more, apply here or feel free to contact William Fleischer, CIC at 1.800.921.1008

When your Art Collection is more Valuabe than your Home

I just received a referral from Liberty Mutual. The homeowner has insurance for his home of $350,000 but his collection is worth $400,000. Liberty Mutual would not insure the art so they sent him to me. I also get similar referrals from USAA and Geico.

His story is very typical, He is receiving an inheritance of valuable art. His short play is to bring the art into his home, then possibly sell them in the future.

I explained to him the various options, Blanket Coverage, where he will have to prove the value at the time of loss, this is easy because when people die, there is an accounting of assets required from the IRS to establish death tax.

But there are cases where the tax valuation does not exist or purposely low. For establishing current market value under a blanket policy, tax evaluation is not important but the description can be. The description can be used to help a dealer or appraiser establish the current market price.

Then I explained to him, he can insure based on his schedule, The schedule does not have to be backed up with bills of sale or appraisals. The downside to this, he may undervalue the art.

The third way we discuss is a schedule based on Bills or appraisals, This is great for at the moment value, but can lose if the art appreciates.

I also explained the coverage I can suggest to him, would include Coverage for Art Transport, Storage while the Art is in his home and if he decides to either put the art in an exhibition or give to a dealer, the insurance would follow these actions.

The process is quick, just complete the collector’s application on my website www.artinsurancenow.com

Call me when you have a situation like this, I can design the right policy for you.

Insuring Art Work at Market Value

Collecting Art is fun, but maintaining values fluctuate a lot on an insurance policy.  All homeowners policies where fine art is a part of the policy are written on a scheduled basis.

To add these artworks to your schedule, the company requires a current bill of sale or a current appraisal.  The value is locked based on the schedule, good if the value goes down, bad if the values goes up.

Here is an endorsement which I feel the collector should consider when they are insuring an art collection.

It’s the Current Market Value 150.  With this endorsement, the company will pay the amount shown on the Schedule for which the item is insured. However, if the market value of the itemized article immediately before the loss or damage exceeds the amount of itemized coverage for that article, we will pay its “current market value” immediately before the loss or damage up to 150% of the amount of the itemized coverage for that article. Of course, if the item market value decrease you will get less.

For a quote on Fine Art, Collectibles and objects of value click here for the collectors application on my website.

 

 

How is your Art being Insured?

Every day, I am helping to insure art collections.  art collections, Gun Collections, Rug Collections, Rare Books Collection, Prehistoric Art collections, Samurai Swords, Bibles,

In the past few days, I have insured rare books, Bibles, Photographs, Manuscripts Antique guns, and furniture. click here for applications

Your homeowner’s policy excludes perils like Roof leaking, wind-driven rain, back up of sewers and drains, Breakage, transit Loss of Value due to a loss.

Most fine art policies have these coverages included. If there is something which is valuable to you and your family, I can insure it.

Call Me 800-921-1008

William G. Fleischer, CIC
President
29 Broadway, Suite 1511
New York NY 10006
T. 212 566-1881 ext 111
F. 212 566-1615
wfleischer@bfbond.com
www.ArtInsuranceNow.com

Art Evaluation formulas you might see in an Art Collection Policy

Here are most of the current options found in an Art Collectors Insurance policy

1. Stated Amount based on an appraisal.
2. Market value or appraised value whichever is less.
3. Market value or appraised value. Maximum value 1.5% of appraisal value.
4. Market value – Onus of proof ( insured to prove value) up to policy limit.
5. Unscheduled Items: can be based on maximum value per item –Maximum Blanket limit- Onus of proof for valuation
6. Newly Acquired Property their cash value, but not more than 25% on similar type of policy.
7. Newly Acquired Property the lesser of 25% on similar type on policy or $10,000.
8. The cost of reasonably restoring that property to it condition immediately before the loss
9. The cost of replacing that property with a substantially identical property.
10. Property of Others in your Care, Custody, and control Maximum, based on the agreed amount prior to Loss 25% of Policy Limit,
11. Jointly Owned Property, value as stated in an agreement with the co-owner(s) up to the amount of your interest.
12. A loss to your Art Reference library, including books, catalogs and “data and Media” Settled at Actual Cash Value.

William
William G. Fleischer, CIC
President
29 Broadway, Suite 1511
New York NY 10006
212 566-1881 ext 111
wfleischer@bfbond.com
www.BFbond.com
www.ArtInsuranceNow.com

APPLICATIONS:

Art Dealers
Artist Transit/Exhibition/Studio Insurance New Program
Auctioneers
Conservators/Restorers
Corporate Collections
Personal Collections
Exhibitions
Museum Collections
Business Owners Liability

What Travelers has to say About Art Insurance

Inland Marine — Fine art
What it covers

Travelers offer unparalleled coverage for the protection of scheduled fine art items. Coverage for such fine art is available at a permanent location, in transit or while loaned to others. Our Agreed Value Fine Arts Policy ensures that fine art collections are insured under a form that addresses the needs for that collection, while also making breakage coverage, special pairs and sets coverage, and flood and earthquake coverage available.

For significant corporate collections of fine art, or for artwork and collectibles in commercial settings, we offer comprehensive fine art coverage under which a broad spectrum of paintings, sculptures, prints and multiples, and more specialized collections of historical, cultural or technological significance can be insured.
Who needs it

Corporations and commercial accounts may have valuable works of art not specially covered as fine art under standard package policies that can be insured under our fine art coverage.

Collectibles Insurance MythBusters:

Collectibles Insurance MythBusters:

  1. Insurance Myth: My Art collection or Collectible collection is covered by my homeowners’ insurance.
    The FACTS: In most cases, your homeowners’ is designed to cover personal property and is not nearly enough to protect your collection.  There is no coverage for Breakage and sub-limits for theft. Many Homeowners Policy, will not cover your collection off premises, not even if lent to a Museum or Art Gallery.
  2. Insurance Myth: No insurance policy would cover my unique collection.  May it be Ceramic Art, Glass Art, Sculptures, Fine China or Unique objects if it has value, it can be Insured.
    The FACTS: There are many Insurance companies like  AXA, Travelers, Markel, Chubb or Chartis that will cover most types of collections, for a wide range of losses, Each company has a unique policy, coverage forms, exclusions, and limitations.  This is why, you need to speak with us, to help you review the differences.
  3. Insurance Myth: I’ll have to itemize every item in my collection and get it appraised to get insurance.
    The FACTS: No appraisals are necessary depending on if the Art or collectible has a reasonable high Values.   You estimate the value of your collection and determine the amount of insurance.  Although an inventory is not always required at the time of application to purchase insurance.  Bernard Fleischer & Sons, Inc, strongly recommends its customers maintain an inventory to streamline, provide proof, and expedite claims in the event of a loss.
  4. Insurance Myth: Insuring my collection will cost me a fortune.
    The FACTS: A Fine Art/collectibles policy is typically less costly than scheduling items on your homeowner’s insurance.  Call us today to get a quote for your prized collection.