In-Vault Jewelry: Itemized jewelry described in the Coverage Summary as “in-vault” must be kept in a bank vault.
There is no coverage for these items while they are out of a vault unless we agree in advance to cover them.
Be careful, no coverage for jewelry in home safes.
The loss of market value is determined as follows:
if the amount of itemized coverage for the article is less than the market value immediately before the loss, we will apply the percentage change to the market value immediately before the loss.
If the amount of itemized coverage for the article is equal to or greater than the market value immediately before the loss, we will apply the percentage change to the amount of itemized coverage for that article.
“Percentage change” means the change in market value resulting from the covered loss, after restoration if any, expressed as a percentage.
Recently, while I was discussing art with an attorney, UCC filings came up. Usually, this is filed when you take out a business or personal loans and the lender to protect its collateral files the UCC with the state.
It’s an inexpensive file, which is used to notify the state you are a lender and have claim to the object corresponding to the UCC.
So I always tell everyone when you lend for sale your Art, to always have an expiration of consignment, in case the other party gets in financial difficulties the asset reverts to you at the end of the consignment date.
But now adding the UCC you attach yourself to the asset so any court can recognize you are in line to be paid if the art is sold.
An interesting layer of protection from an unstable partnership.
William
Because I am always receiving all sorts of art related information I have decided to share some excerpts.
This is from a Zurich informational flyer. Its a helpful flyer breaking down various aspect’s, like:
Understand how to Assess the risk, climate control for fine arts and Antiques, placement of rugs and carpets away from fireplaces. The flyer gets into special care for paintings, moving art, security advice and professional valuations and photographs. it’s worth a quick read.
Click here for an application to insure your Art and antiques.
When you buy a piece of art, can you be sure it’s really yours? Many collectors don’t always feel certain on that score. They worry in some cases that after they make a purchase someone will show up, maybe years later, and claim the art was stolen at some point in the past—ultimately leaving the new owner empty-handed, without the art or the money paid for it.
That’s one reason many art advisers and lawyers recommend title insurance, which can at least partially protect a collector’s financial interests if a piece of art has to be surrendered. But theft isn’t the only issue. Title insurance also can help protect collectors if the person they bought art from becomes entangled in divorce, bankruptcy, probate or other legal proceedings that question the seller’s right to dispose of the art.
Some advisers say title insurance is particularly important because of the sharp increase in the prices of many artworks in recent years—buyers have more to lose. But title insurance has been a hard sell.
William Fleischer, president of insurance brokerage firm Bernard Fleischer & Sons Inc., says most collectors are willing to forgo the cost, in part because many already have paid advisers and lawyers to check on the authenticity and history of ownership of their art, and they have confidence in those experts.
For those who want additional reassurance, some insurance companies offer “defense of title” coverage, which typically pays up to $100,000 in legal costs in the event of a title dispute but doesn’t reimburse policyholders for the value of any objects taken away from them.
The leading provider of more-complete coverage is New York-based ARIS Title Insurance Corp., a unit of Argo Group International Holdings Ltd. It offers policies that cover legal costs in the event of a title dispute and the full purchase price of the piece if the buyer has to surrender the work. Collectors pay a one-time premium averaging 2% to 3% of the purchase price of the item being insured. They can increase coverage, for an additional premium, if the artwork’s value appreciates.
Mr. Grant is a writer living in Amherst, Mass. He can be reached at reports@wsj.com.
Original Article link below.
http://www.wsj.com/articles/art-collectors-weigh-title-insurance-1428894124
As a broker who sells Art insurance, www.artinsurancenow.com, Antiques and Collectible Insurance nationwide, I can attest to the increase in awareness of Values across collections. May it be Fine Art, Photography, Antiques, Rare books, memorabilia, and all that we collect, is influenced by various media outlets.
There are many ways to position an Art Insurance Policy where it can keep your valuables, relatively current with the market price.
Appraisals cost money, there are endorsements which can be added to policies to increase the value by 150%. Just remember the company will not pay you more than the policy limits or class limits.
Each Carrier, AXA, Chubb, Travelers or Markel, have products which either complement your Homeowner’s policy or have a standalone Policy.
If you are interested in exploring the option you can call me:
William Fleischer, CIC
Bernard Fleischer & Sons, Inc.
29 Broadway
New York, NY 10006
212 566-1881 ext 111
www.Artinsurancenow.com
Yes, items can be checked into luggage and still be covered, but this is not the best way to ensure coverage under this policy because you will be violating the packing warranty.
The packing warranty is broad enough that it allows the Insured to pack the items, but still must be packed “utilizing procedures and materials to protect the Covered Property.”
What does this mean? It means you can pack a wood carved 12” dish into your luggage, but you cannot insure a Tiffany lamp wrapped in a sweatshirt.
If the item is of art or cultural importance, the country of origin may seize the property. This policy does not cover any Governmental Action.
Art Forgers Beware: DNA Could Thwart Fakes
Looming spectre of theft at art galleries
http://citizen.co.za/384098/looming-spectre-of-theft-at-art-galleries/
Here’s how much it costs to package, ship, and insure a multi-million dollar piece of art
http://www.businessinsider.com.au/5-things-to-do-before-you-buy-an-expensive-piece-of-art-2015-5
Provenance Premium
Creator or Buyer: Who Really Owns the Art
http://artlawjournal.com/visual-art-ownership/?utm_source=wysija&utm_medium=email&utm_campaign=April+20+2015
The Smarter Way to Invest in Art
Writing off the Warhol Next Door (Art Collectors Gain Tax Benefits From Private Museums)
No Artist Resale Rights for US, for Now
http://news.artnet.com/market/no-artist-resale-rights-for-us-for-now-220318
All Together Now: Artists and Crowdsourcing
http://www.artnews.com/2014/09/02/artists-and-crowdsourcing/
Ian Berry: Teaching Students How To See
http://www.artnews.com/2014/01/20/ian-berry-teaches-students-how-to-see/
Sotheby’s and Jancou Battle in Appeals Court over Cady Noland Artwork
The Visual Artists Rights Act of 1990
“Damage sustained during any process or while actually being worked upon and resulting therefrom unless caused by fire or explosion.”
As an artist policy, the policy will cover completed works and works that are still in progress. Artists can be working on several projects at once and may complete them at varying times or never finish them at all.
The inspiration may be lacking to finish a project, but we do not want to cover things that do not seem to fit, work, or just do not seem right. So, we do not cover while it is being worked upon whether that process is painting, modeling, carving, cutting or whatever process they use to create the art.
Call 212 566-1881 ask for William or visit www.artinsurancenow.com
Since my Launch of an Artist’s Insurance website: I have had numerous conversations regarding “How an Insurance Company evaluates Art.”
The policy evaluation is straightforward. Sales price minus 30%.
This is a simple formula if you have a track record of sales. Where the conversation turns, is when the artist is new to the market. I say this because I have worked with artists who, at various ages and experience are now, entering group shows and exhibitions.
A seasoned artist knows the consignment agreement or the exhibition agreement requires the artist to place a value of their Artwork in the form, but for the neophyte, this is where the “tire hits the Road” or the “paint hits the canvas” and takes the discussion deeper.
This is how I approach the question.
First, everything has a value. Fundamentally; material, time, education, experience, teachers, demographics, size shape, media, subject, along with time spent, researching and actually producing the work. etc…
Of course, the Artist understands this, but what is the valuation sale price, I tell them to just make up a reasonable sale price using the fundamentals as your guiding denominator. Usually, they are within range and the Insurance does not dispute and pay the claim.
In the policy form, it is up to the Artist to prove what the value of sales, so if they put an unrealistic sale price on the work, the insurance company using similar methods will determine the sale price is way over inflated. At this juncture, an independent third party will then appraise the work and the valuation will be established, and the claim would be paid out accordingly.
Bottom line, price your work based on the merits of your talent and experience with keeping the ego in check.
New Artist Insurance Program custom designed for the serious Artist.
Limits start at $100,000
Premiums start at $1000
Kindly help me get the word out by passing this along
Thank You
William
William G. Fleischer, CIC
President
29 Broadway, Suite 1511
New York NY 10006
T. 212 566-1881 ext 111
F. 212 566-1615
C. 917 863-8787
wfleischer@bfbond.com
www.BFbond.com
www.ArtInsuranceNow.com
