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.