Natasha's Art Candy

Art is an asset that appreciates over time, just like other investments (gold, silver, etc.). Collecting art can be one of the most exciting ways to build your wealth, on top of the aesthetic part. Myself, collecting art is culturally enriching and very fun. One of my most valued pieces is a metal sculpture, from an amazing local artist, which I purchased in a gallery residing in the famous Traverse City, Michigan assylum/hospital. Of course, it’s the story of the gallery as much as the artist, that I really wanted that piece. ;P

But, as I was saying… Buying is not only an emotional experience, but a smart investment to make. And most of the time we are always hearing about how to take care of our art but not about how to protect our investment legally! As the years go, the artists’ career blossoms, and so forth, that artwork is going to appreciate in value, and we need to insure the art that we purchase to protect our investment. According to finance experts, “Good art appreciates in value over the year.”

Now, if your home/office experiences fire, flood, or you have your art stolen, having the documents and insurance really helps in reinbursing you for the incident. You don’t want to purchase a piece of art, and lose it, with nothing to show for it.

Here are some tips to insure your art:

1. Keep all original documents (including bill of sale/invoice, COA etc.) received with the artwork and be sure to take photos of the painting front, sides, and back. These will be needed to attain insurance.

2. Have your fine art appraised by an experienced dealer or art appraiser. In many cases, the Certificate of Authenticity and sale documents for new pieces is addequate material to insure it for it’s value, should the sale price be on that COA. Be sure to know how much you want to insure it for.

3. Consider “public liability” when pieces of your collection go on exhibition. This protects them for any issues during transit to and from the showing.

4. According to – Lauren Tara LaCapra of TheStreet.com says, “If you insure, pick the right policy. Itemized coverage makes sense if you have a few paintings . . . It’s also important to make sure that new items are covered at the time of purchase, in case of any damage on the way home from the gallery or shop. If you’ve got art at home in the U.S. as well as the vacation home in Tuscany, make sure the policy covers your works abroad. In addition to AIG and Fireman’s Fund, . . . several other companies offer policies for valuables.”

5. Be sure to take into account SETS of work. If you have a multiple piece painting, for example. Be sure it’s noted that they are a SET, so that should one of the pieces be damaged, you aren’t going to be reinbursed for that one piece. They must be insured as one piece (as a set).

6. Keep your insurance current. “The value of some art has surged as much as 500% in the last two years, according to insurance brokers.“  If you don’t keep your art values current, you will lose out on compensation that you could recieve from your insurance for damaged/lost art. Many insurers recommend regular reappraisals of collections of contemporary art.

(c)photo by illustriousbean