Even though price isn’t necessarily indicative of beauty, many of the fine pieces of art that collectors purchase are worth a significant amount. In some cases, their value exceeds the standard coverage that most homeowners insurance policies afford. In order to make sure their collection is fully insured, therefore, art collectors in Montpelier, Vermont can’t just purchase any homeowners policy. Instead, they should talk with a knowledgeable insurance agent who can help them explore all their coverage options.
Art Collectors in Montpelier, VT Should Check Their Homeowners Insurance Coverage Options
Standard Personal Property Coverages Are Often Insufficient for Fine Artwork
Like all insurance coverages, the personal property coverage that’s included with most homeowners insurance policies has limits. While some policies have higher limits than others, many policies’ standard personal property coverage limits are below the value of an art collection.
This is especially true for older collectors who have been purchasing pieces for decades. While a young collector might only have a few pieces that total $10,000 in combined value, someone who has been collecting all their life may have a large collection that’s worth $100,000 or more.
For example, consider a collector who purchased two pieces of original artwork each year from the time they were 25 until they were 65. If the average price of the artwork they got was $2,000, they’d have spent $160,000 on artwork. Without taking into account appreciation of collectible pieces or additional artwork that was received as a gift, their artwork alone would be worth well over the highest personal property coverage limits of some homeowners policies.
Additionally, this example assumes that the collector’s homeowners policy doesn’t have any specific limits for artwork. Some policies place lower limits on pieces of art, which further reduces how much coverage is provided for an art collection. For instance, a policy might provide $100,000 in personal property coverage, but only $5,000 in coverage for collectible artwork.
Insurance Riders CAn Provide Additional Coverage
When a homeowners policy’s personal property coverage doesn’t provide enough protection, collectors can usually find the insurance coverage they need by purchasing a rider. A rider is an add-on coverage that provides protection for a narrowly defined item, such as an art collection. Because a rider’s definition of what it covers is narrow, it’s possible to get riders with high coverage limits and relatively low premiums.
Most insurers that offer homeowners policies in Montpelier also offer riders for art collections. Some riders may provide coverage for the appraised value of a collection, while others might offer a pre-agreed-upon amount of coverage. Collectors who have a rider that offers coverage based on their collection’s appraised value should be sure to have their collection appraised and keep the appraisal in a safe place (where it won’t be destroyed if the artwork is also destroyed).
Homeowners Insurance Agents in Montpelier Can Help You Find a Rider
If you think you might need a rider for artwork in your Montpelier home, contact your homeowners insurance agent. Most agents that offer homeowners policies can help policyholders look for riders if they need them.