That is a very important question. A well written/documented appraisal by a knowledgeable appraiser provides the best means to determine value following the loss of expensive artwork. Most common homeowners policies do not limit the amount they will pay for works of art, (unless the art includes precious metals or stones). However, leaving unappraised, expensive artwork insured under a homeowner’s personal property coverage is not the best way to preserve your fine art value following a loss.

• Short of an appraisal and separate insurance, an appraiser/adjuster will be forced to rely on the substantiation the insured can provide to value the loss. In this type of scenario, the onus is on the policyholder to validate the value of the item lost.

The best way to insure artwork is with a Personal Articles Floater. With a Personal Articles Floater, the insurance company is provided with an appraisal up front, and a specific limit of insurance is placed on the artwork in advance. The advantages of using a Personal Articles Floater include:

• Values are established before a loss.
• The floater may provide broader perils (losses insured against) than the home insurance policy.
• The value of the artwork does not deplete coverage for other personal property.

The use of a Personal Article Floater does the job of removing the conflict for establishing value at the time of claim.