Art insurance:
recommendations and clarifications

Insurance of cultural objects and artifacts is a widespread area of the insurance business in the West. But in Russia, unfortunately, this type of insurance is not sufficiently developed, although it has some positive dynamics. According to the latest data from the insurance market, the placement of capital in objects of art brings the owner up to 15-20% of annual income.

For a long time art insurance in Russia was not a separate type of service, and was defined as a form of property insurance. But due to the increase in the number of private collectors, the creation of art galleries, all kinds of cultural centers and the general development of the art treasury market, this type of insurance has grown in a separate direction and is now represented by many specialized companies.

A prerequisite for insurance of any artistic property is their independent evaluation and the availability of a certificate confirming the authenticity of a work of art and its objective value. Without an appropriate certificate, any piece of art does not represent due attention to the art market.

All art objects (both public and private) are insured on equal terms, but at different types of rates. Full compensation can be achieved only in case of theft or absolute loss of value. In case of damage, the insurer may offer restoration services, and if the item consisted of two or more parts, he pays the insurance amount for the entire set. Under this insurance condition, all parts of the artifact (intact and damaged) are taken by the insurance company.

For private collections, there are higher rates, but it is advisable to insure the collection of works of art at a minimum cost of 50 thousand dollars. Over time, the number of items will increase, and the overall insurance rate will decrease to a minimum limit of 0.1%. The state collections of Russian museums have a rate of about 0.2-0.3%, with a total cost of collections of more than 500 thousand dollars.

An insurance company can offer a collector antique clock two types of policies: property and intended directly for objects of art. In the first case, insurance will cover the value of the thing, not taking into account its artistic value, and the cost of the policy will be 0.01-0.65% of the assessed value of the object of art. In the second situation, cultural value is also taken into account, which will have a very significant effect on insurance payments in the event of severe damage or destruction of an art object. Such a policy will cost the owner 1.5-4% of the total cost of the work and, in addition, over time, with an increase in the value of the collection, he will be able to amend the contract and increase the amount of insurance.

Special insurance conditions are provided for visiting collections and exhibitions. Nowadays, the state spends a minimum of funds on insurance of collections of Russian museums for the period of exhibitions abroad and basically a large amount of insurance falls on the shoulders of the host country. The policy provides insurance for the entire exhibition period, including the packaging and unpacking process, and covers all risks in case of damage, theft or claims from the heirs.

Among other things, specialized companies and antique shops Provide additional security services for collections, maintain contacts with restorers and auction houses. We can say that the insurance company acts not only as a financial protection of art objects, but also as an organizer of exhibitions. The cost of the insurance policy consists of many nuances: transportation methods, duration of the exhibition, the number of items and their artistic value. The policy can be issued at one or several exhibitions, be joint for several collections and have special conditions for certain exhibits.

Despite the attractive insurance services, private collectors and antique dealers are in no hurry to contact insurers. Most often this is due to the reluctance to publish their own collection because of the fear of robbery. Private owners of art objects, in turn, may show fakes or stolen artifacts, which will negatively affect the collector’s reputation. Among other things, insurance companies set special requirements for the storage of works of art, which for a private collector is fraught with additional costs.

Today in the Russian art space a kind of alliance of specialists has formed, formed from experts, insurance companies, appraisers and financial organizations. The Commonwealth of Professionals offers a range of services that can accompany art objects at all stages, both prior to insurance and after completing the policy. Examination, storage, lending, purchase and sale - this is an incomplete list of services that can be used by both a private collector and a government organization. Having such a multifunctional complex in the art market, we can hope that in the future insurance of art objects in Russia will reach a different, more organized level.

Prepared by: http://avtoritet-antique.com/