Make sure your collection is covered this art fair season

Cape Town - Investing in fine art and collectibles has proved to be a safe-haven for many investors in volatile economic times, with Statista citing the global art market value at 65 billion US dollars. But, while fine art and collectibles are generally appreciating assets, any damage will result in them being devalued – making careful protection and adequate insurance cover crucial, especially during art fair season where collections may be moved around for display.

Commenting on this is Marius Kemp Head of Personal Underwriting at South Africa’s largest insurer, Santam who says that safeguarding your fine art pieces or collection is a complex process with many considerations. “This is especially so when works are being shown offsite at an art fair or gallery,” he says. Kemp adds that for collectors who may be making new purchases at the art fair, it’s important to think about protection from the moment of purchase to the time the work is hanging safely at home, and beyond.

Kemp shares the following tips:

Evaluate your artworks and then ensure they are adequately covered

Deciding on the right type of insurance cover is extremely important. Certain insurers will make provision for fine art pieces in home contents cover especially as part of executive or luxury policies, however you will need to check the level of cover as well as the exclusions. For pieces by a named or prominent artist, Kemp says it may be worthwhile taking out specialist cover. “Specialist policies are tailor made for specific use. As an example, a specialist policy may have an extension that allows for cover in the event the artist passes away, as no further restorations or replacements will be possible.”

Additionally, Kemp says that if you plan on lending works to galleries, it is crucial to check the policy wording as home contents cover may not provide for this type of loss scenario.

Kemp suggest having all your artworks appraised and then creating an inventory of the details, including the name of the work and artist as well as the value. “Share this with your insurer or broker to make sure that your artworks are insured at the right value and that your insurer is well aware of the extent of the collection,” says Kemp.

Scenario plan for success

If you are a collector, gallery or artist and are going to be showing works at an art fair, it’s important to understand the level of cover provided throughout the journey of your artwork. “While you may have cover for your collection or piece when it is at home – how will it be covered when it is in transit? It is worth speaking to the gallery or event organiser you are loaning the artworks to in order to flesh this out in detail. From being moved from your house to the vehicle, in-transit to the next venue, and then being moved out of the vehicle and into the gallery – these are all moments that need to be assessed for potential risks,” says Kemp. He adds that it’s also worth investigating what cover will be afforded for the pieces when they are at the gallery. “What if the gallery is robbed, or there is water damage or a fire? One needs to unfortunately be prepared for all of these eventualities.”

Be proactive to protect your beloved works of art

Lastly, Kemp says that being proactive is key to managing risks around your art pieces and protecting your investment. “Ongoing, proactive maintenance of art works is key to ensuring their longevity. Complacency will cost you in the long run.”