Why Insure your Fine Arts?
Insurance is a service provided by insurance company to transfer the risk of loss from one person to another. They provide this service in return of a payment which is called premium. This has to be paid at every interval and even one default can result in non payment at the time of loss. The insurance helps people to gain some amount of stability in case there is a loss due to theft, fire, flood and so on.
A valuable object like fine art should be valued and insure. These are expensive and hold more value than a car even. Therefore as we take out an insurance policy for a car we also need one to cover out art. This insurance can be taken out by a collector, museum, gallery or anyone who owns fine art.
People who are most like to insure there art are large organizations which includes museums, galleries and other companies which have a large collection of fine art, and other storage facilities. Some artists who are very protective about their work may also take out an insurance policy to protect the work done by him in his studio. Some of these artists display their work at cafes and small galleries which might not be insured and hence they take out a policy to make sure that his loss is covered. Collectors who have art which are valued at extremely high price should take an insurance policy. It is advisable to take an insurance policy for all the collectors whose collection crosses $ 50,000. Art insurance is comparatively less expensive and hence it is worth making sure that all the risk related to it is covered.
Art insurance is covered against both damage and the theft of the object. Some of these art insurance companies also provide the additional facility of investigation and recovery of the stolen property. This is because even though the insured gets paid the value of the product, the art in itself is unique and no amount of money would bring as much satisfaction. The original art is one of its kind and irreplaceable. The insurance company is often linked with the Art Loss Register. The Art Loss Register is an organization that deals in tracking down stolen art work. It's an international organization which has helped recover a lot of stolen property over time. They are also linked to International Foundation for Art Research which helps in publishing and publicizing the stolen art. This helps make the recovery easier.
Why you insure fine arts is cause the frequency of loss due to damage caused by fire, water, or during transportation is higher than the loss due to theft. In cases like this the insurance company pays the insured an amount which covers the replacement cost or the restoration cost whichever may be suitable. These insurers often provide advice to prevent any kind of damage and other ways to protect the art from getting stolen. They have an added advantage of knowledge regarding preservation of art in a proper manner.