Insurance for Art
What insurance options are there for art?
If you’re an art collector in Australia, you might consider the following types of cover:
- Contents insurance. If you’re a private collector who keeps works of art at home, contents insurance could cover your collection. It could also cover other household items such as furniture, appliances and rugs.
- Fine art insurance. This type of cover is offered by specialist insurance brokers for private collectors and art dealers.
Covering art with contents insurance
How do I cover works of art with contents insurance?
It depends on how much the art is worth. Standard cover could work if the value of your art collection fits within the standard contents policy limits. However, if you have a high-value piece or collection, it’s worth considering specified cover.
Some insurers offer specified contents cover for items worth more than the total limits set in a policy. For example, if your policy has a limit of $5,000 for each painting and you have art pieces worth more than that, you might like to consider specified contents cover.
What does contents insurance cover?
Contents insurance coverage can vary depending on your insurer. This table is a guide to what’s usually covered and excluded from contents insurance policies.
| Insured event | Is it usually covered? |
|---|---|
| Storm damage | ✓ |
| Fire damage | ✓ |
| Flood damage | ✓/Optional extra |
| Earthquake | ✓ |
| Movement of the sea | ✗ |
| Vandalism | ✓ |
| Theft | ✓ |
| Impact damage (excluding deliberate damage) | ✓ |
| Portable contents | Optional extra |
| Motor burnout | Optional extra |
| Damage from vermin (including rodents and insects) | ✗ |
| War and uprising | ✗ |
| Accidental damage | Optional extra |
| Escape of liquid (excluding the leaking item, e.g. burst pipe) | ✓ |
| Removing debris | ✓ |
| Damage from renovations | ✗ |
| Temporary accommodation | ✓ |
For more information on inclusions, exclusions and specific policy wording, always read the Product Disclosure Statement (PDS). The Target Market Determination (TMD) could also help you figure out if the product suits your insurance needs.
How much does contents insurance cost?
Contents insurance premiums vary depending on the value of the possessions you’re looking to cover. As a result, adding specified cover for your works of art will likely increase your overall premium.
Some other factors that insurance providers consider during the underwriting process include:
- Your insured address and type of home
- Your claims history
- Security features in your home (e.g. security screens and alarms)
- Optional extras you add to your policy.
Fine art insurance
Compare the Market doesn’t compare fine art insurance policies, so this information is a guide only. However, you can compare standard contents insurance policies through our comparison service.
What do fine art insurance policies cover?
Generally speaking, fine art insurance policies could provide financial protection for works that:
- Are stolen
- Are damaged while on consignment
- Are damaged while being exhibited
- Are damaged while in transit
- Have a defective title (i.e. the ownership of the work is disputed)
- Lose market value after being damaged.
Always refer to the insurer’s relevant policy documents for more information on what’s included and excluded from their cover.
What don’t fine art insurance policies cover?
Fine art insurance policies might not cover damages caused by:
- Alterations and repairs
- Cleaning
- General wear and tear
- Restorations
Meet our home and contents insurance expert, Adrian Taylor
As the Executive General Manager of General Insurance at Compare the Market, Adrian Taylor works to make it easier for homeowners, renters and landlords to protect their home and contents. He believes it’s important for all residents (whether they rent, own or lease) to have adequate financial cover for their property and belongings in case the worse should happen.