By William G. Fleischer, CIC
Principal, ArtInsuranceNow.com | Bernard Fleischer & Sons, Inc.
New York, NY – February 20, 2026

In my 40+ years working in fine art insurance, one question comes up more than any other: “What is my artwork really worth?”

The honest answer is: it depends on why you’re asking.

Art isn’t a standardized commodity like a bushel of wheat or a barrel of oil — each painting, sculpture, or installation is completely unique. Yet it still trades in multiple marketplaces, and its value can change dramatically depending on whether you’re donating it, selling it at auction, settling an estate, or — most importantly — protecting it with insurance.

A sale price is simply what a willing buyer and willing seller agree on that day. But that number is only one of several legitimate valuations an artwork can carry.

Appraisals: One Object, Many Purposes

Appraisals are never one-size-fits-all. The same artwork can receive different appraised values depending on its intended use:

• Charitable gift or tax deduction
• Estate settlement or probate
• Fair market value for divorce or partnership dissolution
• Insurance scheduling

Each appraisal must be supported by current market data and comparable sales, but the purpose dictates the methodology. That’s why I always tell clients: make sure your appraiser understands exactly what the document will be used for.

Auction Estimates: A Strategy, Not a Valuation

Auction houses use a completely different playbook. They publish low estimates to attract consignors and generate excitement in the room (or online). The goal is to spark competitive bidding that pushes the final hammer price well above the estimate.

Those low numbers are marketing tools — not a reflection of what the piece is truly worth in the broader market. I’ve seen works with a $50,000 low estimate sell for $180,000 because two determined collectors wanted it. That final price becomes the new “market value”… until the next sale.

Insurance: The Only Value That Actually Protects You

This is where my world lives.

When we insure a work of art, the question is simple: “If this piece is lost, stolen, or destroyed tomorrow, how do you want to be made whole?”

We typically use one of two policy structures:

Agreed Value
We agree on a fixed amount upfront (backed by recent appraisals or market expertise). Everyone knows exactly what the payout will be. No surprises. This is the cleanest and most popular option for collectors and galleries.

Onus of Proof (or Actual Cash Value at time of loss)
You prove the value after the loss using purchase price, current market comparables, or a new appraisal — whichever supports the highest amount. If the piece has appreciated since you bought it, you’re compensated for that increase.

The Scarcity Premium — When No Comparables Exist

One of the trickiest situations is when an artwork is so rare that nothing similar is currently for sale.

This happens frequently with important pieces in a series or works by artists with very limited output. In those cases, we often recommend increasing the insurance value by 20–40% to reflect the real-world difficulty of replacement. Without active sales data, a “willing buyer, willing seller” price is theoretical — but the emotional and financial cost of losing something irreplaceable is very real.

My Advice for Artists, Collectors, and Galleries in New York & California

Whether you’re in Chelsea, Bushwick, SoHo, or the LA arts districts, the lesson is the same: market value and insurance value are not the same thing.

Schedule a professional appraisal specifically for insurance purposes every 3–5 years (or after major market moves). Keep good records. And work with a broker who understands the nuances — not a generalist who treats art like any other property.

Ready to make sure your collection is properly protected?
Call our New York office today at 800.921.1008 or 212.566.1881 ext. 111. We’ll review your current schedule for free and show you exactly how your values line up — or don’t.

FAQ

Q: Can I just use my auction estimate for insurance?
A: I don’t recommend it. Auction estimates are intentionally conservative. Insurance should reflect replacement cost in today’s market.

Q: How often should I update my art insurance values?
A: Every 3–5 years, or immediately after a significant purchase or market shift.

Q: Does my homeowners policy cover my art?
A: Almost never adequately. Standard policies have low sub-limits and often exclude transit and mysterious disappearance.