Should you Insure Artwork?

Should you insure artwork?  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.