Should You Insure Art Work
Should you insure art work? This is one of the most common questions asked by people who have invested money on fine art and people who have inherited a valuable piece of art. The question of course is very easy. Of course if it has significant value, then you should insure it because it is the only way that will protect your investment. The question should be, how much should you insure your art.
This is really a tricky question and one that many people fail to give enough attention to. For example, many people insure their art in almost the same amount every year. They approach it in the same way that they insure their car or homes. The fact is, an art work is totally different because its value appreciates, instead of depreciates, over time. So, if you are insuring, say a painting for the last ten years and insuring it for the same amount ever since, the value of your art may actually have appreciated and you are under insuring it. This means that should something happen, you will get less than the actual value of your art.
Anyone who insures a fine art should therefore understand that the value of piece of art increases over time. It is therefore necessary to have it assessed every year for an actual valuation. It is also necessary to have a reliable appraiser so that you will know exactly the value of an art work.
Art work insurance facts
Insuring a piece of art is not the same as insuring your car or other properties. Here are some facts about insuring your art work that can help you in how to properly insure your art that will cover its actual value.
First you need to remember that your fine art, especially if it is an antique, actually increases its value over time. This is why art is considered a good investment. This means that you just cannot insure it for the same amount or value year after year. You need to have it appraised every other year or every year. Second, you must remember that a piece of art, once it is damaged, is hard to restore. Sometime, it even loses its optimum value because of the damage, although it can still be valuable. This means that you need to find a good insurance company that is backed up by a good art restoration company. Lastly, have a good appraisal. This means not relying on just art dealers to appraise your fine art. It is best to have it appraised by experts, such as art appraisers and advisors of museums and art galleries. Most importantly, do not appraise the piece of art yourself. Many people do this by simply making an online research in appraising the art. Appraising an art piece requires more than this. There are many factors that an appraiser considers, including the condition of the piece, before arriving at an actual value of a piece of art.
Appraisal tips for fine arts
Once you bought a piece of art or inherited it from someone, the first thing that you should do is to have it appraised. This way, not only will you be able to determine the actual value of your piece of art, you will also be able to have it insured for its actual value. Having your fine art appraised is therefore the most important part of insuring it.
Now, when to appraisal, do not trust your dealer or the gallery to have it appraised. This does not mean that you should not trust them, it is just a matter of conflict of interest. They may appraise it for higher value because it will make them look good.
Second, do not self-appraise. This means that you should hire experts to do the job. Many people, simply insure the art on how much they paid for it. Although this protects you in terms of cost, it does not cover the actual value of the art. For example, your fine art may have already increased its value over the years.
Third, be wary of free appraisals. They do not have any reason to appraise your piece accurately unless you consign it to them. The best thing is to have it appraised by an expert. Do not think about what you can save from free appraisal. Think about how much you can lose if they under value your art. When it comes to art, the best thing to do is to hire an expert appraisal.
What you should know about free appraisals
When it comes to art appraisal, free is not always good and not always free. It may seem free and it may seem a good deal, but the truth is, it may just cost you more. So, if you have a new piece of fine art and you need to have it appraised, steer clear away from free appraisals offered by auction houses and collection stores. Here are the reasons why:
Firsts, the way they appraise an art piece is different. Why is it different? Because basically, they only consider the resale value of the object. This means how much the object will be sold at the soonest time possible.
Second, they do not have the expertise in assessing art pieces. There are many things to consider when it comes to assessing the value of an art pieces that even auction houses seek the help of expert appraisers when it comes to valuable pieces.
Third, having them appraised your art piece is like asking a buyer how much your art piece is. Even if you tell them that you are not interested in selling, they know that they should give you an amount that will be profitable for them should you decide to sell it to them later. In short, it is a conflict of interest. If you are interested in selling, better have it appraised by an expert before bringing it to them to sell.
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