Why you should be insuring your Jewelry.

The differences in homeowner’s policies and Jewelry coverage are vast and it’s best to make sure you are covered properly. The typical per-theft claim limit is $1,000 on a homeowner policy without a schedule. That’s the jewelry limit for an entire claim, not a $1,000 limit per item Homeowner policies also have deductibles which apply to Jewelry.

Many homeowners’ policies exclude if you lose stones. If the stone falls out of the setting, you’re not covered at all. Most insurance companies include the jewelry insurance with sub-limits of $500 in their standard homeowner policy. With our standalone policy, we can increase the limit up to $250,000 and include watches, silverware, collectibles and art collections.

Diamonds may be a girl’s best friend, but when diamonds go missing, insurance is your best friend or your worst enemy if you don’t have enough coverage. Value, sentiment, emotion, and your aversion to risk should all play a part in choosing an insurance policy for your jewelry. This is where our newly expanded jewelry coverage fills in the gaps.

Coverage Limits.
Our program insures your Jewelry on a blanket basis up to $250,000. The only requirement is items valued over $50,000 must have supporting documentation.

Blanket/ Scheduled
We insure your Jewelry on a blanket Basis, only Items over $50,000 require to be scheduled. This lets you insure all your items, hassle-free. There is no requirement for appraisals for items under $50,000.

We cover real life.
Some policies will only cover theft or loss due to a disaster claim, we realize that you can’t always pinpoint how or where your jewelry disappeared so we cover mysterious disappearance, coverage that’s often overlooked by other policies.

Traveling?
Homeowner’s policies do not cover outside of the home, our coverage follows you worldwide. Never worry about having to leave your favorite jewelry behind.

Damage to Rings, Watches, and Necklaces?
Diamonds are the hardest known mineral, they still aren’t impervious to harm. Diamonds can crack when dropped on a hard surface or fall out of their settings when subjected to impact. Rubies, sapphires and other precious stones are also susceptible to chipping, cracking, or breaking. Emeralds are especially brittle, and pearls can easily be damaged or crushed if improperly protected. Homeowner’s policies typically do not cover damage to your rings, watches, and necklaces.

Personal Jeweler?
Many people have a preferred jeweler, as opposed to just having someone trying to sell you something in the display. A Personal Jeweler really gets to know you and your tastes. Well, you won’t have to give them up. When placing a claim with us you get the same quality workmanship that you are used to.

Loss buyback.
There is sentimental value in the keepsake, our policies give the option of repurchase if lost or stolen and later recovered or it declared a total loss.

For more information visit artinsurancenow.com, call us at 800.921.1008 or fill out EZ application here.

As Art Basel Miami 2016 approaches, we look at the necessity of a good art insurance policy.

artbasel-miami-beachArt Basel, the international art fair with three shows staged annually in Basel, Miami Beach and Hong Kong. The shows offer parallel programming produced in collaboration with the host city’s local institutions. Art Basel provides a platform for galleries to show and sell their work to collectors, museum directors and curators. The 2015 show in Miami presented 267 leading international galleries from 32 countries. Over five days the show attracted 77,000 visitors including private collectors and directors, curators, trustees and patrons of nearly 200 museum and institution groups. The show hosted first-time collectors from Cambodia, Ethiopia, Nicaragua, Romania, Togo and Zimbabwe. That’s a lot of art moving around and collectors Art policies should cover Art, when purchased, on consignment and in transit, it’s about knowing your coverage situation before it’s too late.

art-basel-miamiThe transportation of art is a tricky thing, and as fine art transportation insurance leaders we can tell you exactly what you require to know so that your insurance program will be effective and  cover you properly.  Insurance coverage during transportation, installation and exhibition of irreplaceable works of art, antiquities, and memorabilia isn’t optional and the best way to obtain the finest coverage is to visit artinsurancenow.com or call us at 800.921.1008 to speak with a knowledgeable fine art broker that can advocate for you in seeking the best possible insurance terms.

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5 Things Every Collector Needs to Know about Art Insurance

anFor many of us, amassing a robust collection of works by the artists we love is more a dream than a reality (though startups like Art Money are working to provide interest-free loans that should make buying art more manageable). But for emerging collectors and seasoned vets alike, the actual purchase of a piece is only the beginning of what it means to actually own art. Though not flashy, art insurance is a crucial part of collecting. It ensures that, should an artwork be damaged, it can be repaired or, in the case of a total loss, some kind of remuneration can be provided. So what do you need to know about art insurance? We sat down with Robert Pittinger, senior vice president and director of underwriting at AXA Art Americas Corporation, to get some helpful tips.

Know the Process

When a collector buys specialty art insurance, they’ll work directly with a broker who can assess the collection and determine what policy the collector might need. That broker, in turn, works directly with the insurance companies to find the right fit. A common misunderstanding of the process, Pittinger says, is that “collectors confuse the broker with the insurance company.” It’s helpful to know that “the role of the broker and the art insurer complement one another; however, the roles themselves vary and they are different. A specialized fine art broker is an advocate for the collector in seeking the best possible insurance terms for their clients.” As an insurer, AXA itself works with a select group of fine art brokers.

Keep Documentation

The first step toward getting insurance is—unsurprisingly—to determine what is going to be insured and for how much. To this end, documentation is key. “One of the biggest things is that the collector needs to have all the documentation for their collection before they go to the broker, because the broker has to have a very thorough understanding of the price of the collection,” Pittinger says. When approaching a broker, collectors should have a list of all the works, descriptions, invoices of sale prices, the purchase dates, and subsequent appraisal prices.“The collector’s management of their collection is critical, whether they have an online management system or a spreadsheet or they have manuals with all the documentation and their appraisals—that is a critical part of purchasing the insurance,” Pittinger says.

Assess Your Needs and Options

All this information is important to provide to the broker so they can determine what insurance is best for you. Though most collectors who need insurance already have it, some collectors think they’re covered by everyday, run-of-the-mill homeowners insurance. And they can be. But, as Pittinger notes, “A homeowner package policy generally is an add-on coverage. It doesn’t go into detail.” Homeowners insurance that covers art might have high deductibles, might not cover a collection across multiple houses, or might not cover the work during transit. That last one is a particularly sticky issue because “any time a collector moves their art, there is increased risk of damage,” Pittinger says. “That is the number one cause of loss for the insurance industry that specializes in art insurance.”

All this is why, for collections larger than just a few items, Pittinger recommends specialty art insurance. Even lower-priced works and emerging collections can receive insurance: For pieces priced as low as $2,500, AXA offers a 12-month policy of $75, with a minimum premium. Generally, however, it is hard to say exactly how much art insurance costs—it depends on too many factors. “Art insurance is very reasonably priced compared to other types of insurance,” Pittinger says. “The price range varies depending on the type of works, the size of the collection, security, where it is kept, if it is in a fine art storage warehouse or in their home or in a museum—all those factors go into pricing a fine art collection.”

Stay Up to Date and Be Careful

Broadly, in the event of damage, an insurance policy pays out in one of two ways: Either the policy will pay a set, agreed-upon amount determined by the insurer and the collector in advance, or the policy will pay out based on the work’s current market value. Pittinger says collectors opting for the predetermined payout structure may do so for a number of reasons, including peace of mind so that they “wouldn’t have to worry about substantiating the value of the works” in the case of damage. Agreed value can also move up and down over the life of a policy if the collector decides to get the work reassessed.

Current market value is exactly what it sounds like: The work is insured for its current value if that figure exceeds an agreed value. “But the important thing to remember is there would be a restriction—the company would by no means pay more than the total limit of the policy,” says Pittinger. In other words, if a collection is insured for $10 million total, and one work that has radically increased in value is damaged in excess of $10 million, the insurance would still not pay more than the total cap.

Be a Smart Buyer

One final note: Do your research. Make sure you get a full condition report prior to purchase. “It’s also critical that the collectors be careful with the provenance of the piece to make sure there’s not a gap in the ownership that could come back to haunt them later,” Pittinger says. If there is an issue and the work is seized for, say, having been looted by Nazis, insurance typically won’t cover that turn of events (there are, however, some specialty insurers that would protect against such loss with what is known as title insurance). So when it comes to art insurance, the old adage “buyer beware” certainly still applies.

—Isaac Kaplan

BY ISAAC KAPLAN

 

 

For a quote apply here or call us at 800.921.1008

Art Collection Insurance Program Expanded to Include Jewelry and Watches.

Diamond Ring PhotoAn engagement ring can cost an average of $6,000 and up, heirloom pieces and other jewelry often have significantly higher values. Jewelry is a favorite for thieves and most often never recovered. This valuable property is usually not adequately covered under the victim’s homeowners or renters insurance and has even less coverage options while travelling.

Our Fine art insurance coverage has broadened its collectibles program to offer expanded coverage of up to $250,000 in jewelry and watches. The enhanced offering represents a significant expansion to the Art and Collectibles Insurance program.

Specific items eligible for coverage include antique and designer gemstones, pearls, bracelets, charms, earrings, necklaces, pendants, and rings and watches comprised of silver, gold, platinum and/or other precious metals or alloys. Watches include vintage, collectible and every day time pieces worn on the wrist, as a necklace or in a pocket. Under this program, mysterious disappearance is an included risk, and coverage travels with the policyholder worldwide. (Note: no coverage in baggage unless in your hand and while on the premises of Hotel/Motel, unless being worn or in hotel supervised vault.) No appraisal is required at application for pieces valued less than $50,000, and a no deductible option is also available.

Collectibles Insurance is offered nationwide which offers tailor-made coverage solutions for private and corporate collections, museums, galleries and artists. Visit us here for more info or for a quote on your collectible call 800.921.1008

Bernard Fleischer and Sons / ArtInsuranceNow.com would like to congratulate Marti Funke, collections manager and exhibitions coordinator for the University of Mississippi Museum, as the 2016 recipient of the Southeastern Museum Conference’s Emerging Museum Professionals Award.

museum_arcade_webMarti Funke has administrative responsibility for the museum’s artworks, a collection of more than 20,000 objects. Her duties include registration of items, risk management insurance supervision, collection loans and storage. The award was created in 2008 to recognize museum professionals who demonstrate excellence and leadership at their institutions.

We understand the challenges of today’s exhibitors and recognize the efforts of professionals like Funke. Our Customized Art Insurance policies are geared to your typical Art Gallery, Museum, Exhibition space, and Dealer business.  We can combine General Liability, Public Liability (Bodily Injury and Property Damage) into one simple policy Insuring Art owned, on consignment, while in an exhibition, in storage and when being transported. along with non salable contents, desk, chairs, computers, fixtures, racks and business property.  Our policies can include Landlords, curators and Artist as additional insured. Visit us at www.artinsurancenow.com or call us at 800.921.1008 to learn how your space can benefit from the trusted one stop insurance for the art community. semc-logo

Iconic Muhammad Ali print stolen from museum.

The Print, which was stolen while the museum was open to the public depicted Ali in a classic boxing pose painted in the brilliantly colored, expressionist style that LeRoy Neiman was known for. Brazen thieves ripped the print from the wall even with security cameras watching, It’s important to understand the value of art insurance and protect yourself by covering your valuable collection.

Although risk extends beyond theft (47 percent of art loss is attributed to damage during transit according to The New York Times) art trafficking is a very real thing and according to statistics ranks third behind drugs and arms.

In a case of  theft, the loss is irreversible. Not only the artwork is irreplaceable itself but also even the reputation of the organization suffers from a mere fact that such situation has occurred. Without having a comprehensive fine art collectors insurance from a trustworthy art insurance broker, the masterpieces are subjected to risk.

Apply for coverage here or call me if you have any questions or to discuss your options.

William G. Fleischer CIC | Principal
T: 212 566-1881 ext.111
E: wfleischer@bfbond.com
W: ArtInsuranceNow.com

 

 

David Bowie’s Art Collection to be auctioned, how would a collectors policy respond?

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

William G. Fleischer CIC | Principal
T: 212 566-1881 ext.111
E: wfleischer@bfbond.com
W: ArtInsuranceNow.com

 

Artist Studio Insurance “The Pitfalls”

Artist’s who work out of their home may think they have coverage with their Homeowner insurance company, but do they?

I get it, most artists have lofts, special rooms or detached structures where they create, show and sell their art.

The Limitation and Exclusion: Business personal property on premises.

Here is the simple 2 question test if the exclusion applies. If you answer yes, an Artist Insurance policy is recommended

  • Continuity of activity
  • Monetary gain (profit motive)

Homeowners Insurance Policies for Owners or Tenants are designed to protect you and your personal property.  These policies contain liability for trip and fall, house parties, lawsuits against you and members of the household for bodily injury or property damage to someone or their stuff.

 

The exclusions/limitations for a business in your home are very limited unless you take some measures to add back coverages.

The Homeowner Insurance Policies are very strict and are looking to avoid anything to do with a business in the home, unless they know about it and add special endorsements.

First, I would like to point out that any art, materials, books or paperwork stored in a detached structure, voids coverage for that structure unless it is added by endorsement to the policy.  If the “Art stuff” is in the home than it will not void the insurance coverage, but the limit for business property is usually $2,500.00 and work you created is not valued at retail price, but just materials.

Secondly, Liability is not covered by the Homeowner’s policy for anything to do with the business, if someone got hurt during a studio visit, the claim would be denied.

To somewhat fix this, add “other structures on the residence’s premises”, if the value exceeds the basic coverage on the current policy.  To protect you from trip and fall claims, add, “Permitted Incidental Occupancies”. Note the situation where you have more than $2,500 of personal property, you should be looking for an Artist carve out policy, like an Artist Studio Policy.

When it comes to the Liability, the homeowners have a few endorsements you could use, “Permitted Incidental Occupancies”, usually costing  $27.00 for $500,000 worth of coverage, but they have limitations, such as premises only, no additional insured’s and no products or completed operation coverage. It’s best to look for a carve-out policy for this too.  I recommend buying a separate Business owner’s policy for just simple fixtures since all the others should be insured in my program.

In conclusion:

Artist’s who create at home are better to have an Artist policy which evaluates the work using retail value, not materials cost.  An artist policy which includes, All works for sale, materials, tools, reference library, transportation, while in storage, at Exhibitions and worldwide; All the coverages loaded into my Artist Policy Program.

For more information visit us at www.artinsurancenow.com to fill out a quick EZ application for a fast, free quote.

To discuss your particular situation contact me,

William G Fleischer  CIC                                                                                             Principal                                                                                                                                  T: 212 566-1881 ext.111                                             wfleischer@bfbond.com

 

What is a condition report?

Report what you see. The most important quality of a condition report – and what allows it to function at all – is clarity.

Photography, drawings, and verbal description should be employed effectively to document any exceptions that you find. Identify the exception, locate it on the artwork and indicate its scope.

Strive for short and precise notes, and limit your use of relative terms; such as bad, small, severe, etc.

Insuring Art, Art Gallery, Art Dealer, Artist and the Art world needs