Largest Warhol Collector’s Art Damaged.
Renowned Mugrabi family which owns the largest private cache of Andy Warhol pieces says its business has been brought to a standstill by a company that’s holding its entire $100 Million, 1,300-plus-piece art collection “hostage” at a New Jersey storage facility.
In a lawsuit filed in New York City, David Mugrabi accused Mana Contemporary of preventing the family from removing any art from its storage facility in Jersey City since last month.
Mana Contemporary had agreed in 2014 to store the collection in exchange for the Mugrabis’ recommendations of Mana’s services to their clients, Mana now wants more than $500,000 for storage fees, according to the complaint, and the company has also damaged 11 works of art in its custody — including pieces by Frank Gehry, Richard Prince and Jenny Saville, according to the suit.
Would our Collector’s policy cover the damages?
YES! Our Collector’s policy covers Art owned by the Collector and covers damages while in storage. The main focus would be the loss settlement. Restorers and appraisers would evaluate the work to determine the “Current Market Value”, the “Loss of Value”, and the value of the art if scheduled. Once all information is established, then the insurance company would pay the claim.
A Total Loss: the company will pay “current market value” of the property at the time of “loss” or damage occurs. The “loss” or damage shall be ascertained or estimated according to such current market or schedule values.
A Partial Loss: The company will pay the Collector an amount mutually agreed upon based on the following:
(a) The cost to repair the property to its value immediately before the “loss”; or
(b) The difference between the value of the property before and after the “loss”; or
(c) The cost to restore the property as nearly as possible to its condition immediately before the “loss”. If the restored value is less than the value immediately before the “loss”, the company will pay the difference between the restored value and the value immediately before the “loss”.
Having the right policy in place with the right coverages help to rebuild and or restore amazing collections. The purpose of Insurance is to indemnify and restore the Insured to the situation prior to a loss. Sadly, Art is one of those objects which is very difficult to return to its original grandeur. Nothing lasts forever, but one would hope, through proper insuring of a collection, it could be rebuilt with similar works or genres.