On the international scene, the demand for private art insurance has risen sharply recently. According to AXA Art, a subsidiary of one of the world's leading insurers, the world-wide art market generates about $5.4 billion in annual premiums. However, growth rates are relatively high as the market advances by about 8% every year. That statistic is almost double the rate of the traditional insurance market which grows by about 4% every year.
How does this news affect you?
The main reasons for the sharp rise and interest in buying art insurance has been mainly credited to art owners’ increased belief that they have a real need for specified fine art and antiques insurance coverage. In the wake of the growing number of high profile and recent art thefts, natural disasters, and the high priced art sales and record-breaking art auctions, many art and antiques owners realize the need to protect their investments. Whether you have one valuable still life painting that you inherited from grandma or you have assembled a major collection of 19th Century Victorian furniture, art insurance is a must in today’s ever changing and highly valued market.
Market on the rise
With a growing number of middle-class investors buying paintings, works on paper, and sculptures to diversify their portfolios, the insurance market for art and antiques is expected to continue to grow. In addition, it is expected to grow even faster than previously expected. While only about 15% of works of art owned privately are insured, the volume of the art and antiques insurance business is expected to double by the year 2012.
Also, with current interest in art and antiques purchases and the current market boom in sales and record breaking prices, it follows that the value of many works of art and antiques has risen sharply and quickly. This rise has triggered the need for specialized insurance protection including expert, certified appraisal documentation to inform insurance agents of current market values using accurate comparable sales records.
Contact your insurance agent and ask about requirements for all risk art and antiques insurance. It is not expensive, that’s a myth. It is necessary to cover your valuables so consider the cost if they are lost or damaged. Contact experts who specialize in insurance appraisals, there aren’t many of us who provide this service, so be picky. The appraiser must inventory your objects and document their condition as well as research current market evaluations and other market information to meet the insurance standards. This is not a do it yourself project. Call in the right specialists.
Your collections are not only of sentimental, monetary, and historical value, but they also are a representative part of your lifestyle. They reflect your interests and demonstrate your relationship to cultural objects. Many people are choosing to protect their assets — in terms of art and antiques — with informed and unbiased evaluations and specialized insurance coverage.
Ph.D. antiques appraiser, author, award-winning TV personality, and TV talk show host, Dr. Lori presents antique appraisal events nationwide, including around Tampa Bay. Dr. Lori is the star appraiser on the hit TV show "Auction Kings" on Discovery Channel airing Tuesdays at 9 p.m. Visit www.DrLoriV.com, www.Facebook.com/DoctorLori or call (888) 431-1010.