Not just David Bowie’s Estate sends work to the art auctions but individual collectors do also.
The most popular conversations I have are collectors looking to insure their work while in transit to an auction house like Christie’s, Sotheby’s, de Pury, and Phillips house.
Many times the auction house will either visit the collection or ask the collector to send the item to be auctioned directly to the house, either to be further evaluated or to be inserted into the auction rotation.
The preferred Collector’s insurance policy I like to sell, include and is not limited to coverage in transit and away from premises, in exhibitions and in storage and does not exclude auction houses.
The evaluation of the Art is based on two different models. Depending on the Art Insurance Company policy wording, One base is on the schedule amounts of the item on file (either with the Insurance company or the Collector) and the other is based on the current market value (onus of proof is on the collector).
In the case of David Bowie, Jim Hendrix or even Robin Williams, the auction house receives these items on consignment and will charge a hefty fee to insure them while on the premises. I advise my clients to not use auction house insurance because most of the policies I sell have coverage for unnamed locations or broad enough to cover the works given for sale on a stated amount.
One of the downfalls of using the insurance, the auction houses give you, is how their insurance establishes values of the art at claim time. Usually, it is not based on the artwork consignment agreement but on the lowest estimated value. The cost to you for using their insurance is usually much more expensive than what you are currently paying. The standard auction house’s most common policies have wording to the effect of;
“Property of others consigned to you for auction, at the lowest pre-sale estimate” and “Where no consignment receipt exists but the article appears on your records fully described, such property shall be valued at the lowest anticipated pre-sale estimate or the amount for which you are held legally liable, whichever is less”
This may be lower than your schedule or market value to entice attention for a bidding war.
When in doubt, call me to discuss your unique situation.
|William G. Fleischer CIC | Principal
|T: 212 566-1881 ext.111