Large private collections typically have fine-art insurance covering the full value of the items in the collection, however, many smaller collections (with values less than $1 million) may be insured through a traditional homeowner’s policy or, in the worst case scenario, may not be insured at all. If these collections are damaged, the owners may find that they have insufficient coverage to fully address their financial loss. Whether you have a traditional homeowner’s policy or a fine art and collectible insurance policy, the valuation of covered items will be a critical factor when it comes to making a claim.

Homeowners policies tend to insure for actual cash value while collectibles policies insure the full value of the items in the collection. This distinction alone can result in a significant difference in valuation. In addition to this distinction, there are also limitations found in a traditional homeowner’s policy that would typically not be included in a fine art and collectible insurance policy. And if you are relying on your homeowner’s policy to cover your personal valuables, you could fall short of replacement value. These policies generally cover your possessions up to 50% of your total coverage but also place limits on specific kinds of items, such as jewelry. Other types of items, such as silverware, firearms, coins, stamps and furs, may also include reimbursement limits.

These are critical distinctions that you should be aware of in ensuring you have proper coverage. Understanding the difference in coverage and knowing what you are entitled to will give you a critical advantage in maximizing the value of your claim. The attorneys at HL Law Group have the experience and background as well as industry connections to art valuation experts who provide us with the information we need to properly value your loss. Whatever your treasured possession, be it fine art in a personal collection or a gallery collection held for commercial use, we can assist you in ensuring that you receive the coverage you are entitled to pursuant to your insurance policy.