Artwork Insurance: What You Need to Know

As many a collector will tell you, buying an artwork is a thrill. It’s a small but meaningful shift from appreciating art to owning and displaying it. But once that rush fades, a practical question often follows: Is it insured?

Not all art needs to be insured. If an artwork is of low monetary value or is permanently owned and displayed in a low-risk environment (like your own home), then insurance may not be necessary.

But taking out artwork-specific insurance is a prudent move for artworks of financial value, especially original works, limited editions, or rare collectibles. “Insurance is something you want to have but hope not to use,” explained Michael Richard Goodman, co-founder of Jarrow & Goodman. “That being said, it’s about what one is comfortable potentially losing. The amount is relative to the individual; for many beginners who are stretching themselves, I highly encourage getting insurance for peace of mind.”

Knowing how art insurance works—and when to consider it—is thus paramount. Here, Artsy spoke with experts to explain everything buyers need to know about insuring their collections.

Insurance becomes a consideration when artworks reach a certain financial, cultural, or logistical level of risk. While it’s technically optional, many collectors select some form of coverage.

If your collection—or even a single artwork—carries significant monetary value (typically over a few thousand dollars), insurance is strongly recommended. Standard homeowners’ or renters’ insurance rarely covers art adequately, and even when it does, it usually caps coverage at a low limit or excludes specific areas such as accidental damage.

The need for insurance is heightened if you lend artwork to galleries, museums, or other institutions, and if your artwork is being moved between locations.

Adrienne F. Reid, senior vice president of Huntington T. Block Insurance Agency, told Artsy, “The biggest misconception collectors have about artwork insurance is that the artworks are adequately insured under the homeowners’ insurance policy.” She offered the following considerations:

• How is my artwork valued in the event of a loss or damage?
• What are the policy coverage exclusions?
• What documentation is required for coverage and in the event of a loss?

While owning art is a passion, each acquisition is also a carefully considered financial decision. Every artwork carries its own value and can be vulnerable to theft, fire, mishandling, or natural disasters. Damage can strike during shipping, relocation, or even through something as ordinary as a burst pipe.

“Insurance isn’t just financial protection; it’s part of the responsibility that comes with owning a work of art,” said Daniel Silva, co-founder of Dubai-based arts organization Shankay. “Taking care of a work is also a way of safeguarding the artist’s intention and ensuring the piece continues its journey beyond one collection.”

Fine art insurance covers a range of scenarios: theft, fire, accidental damage, vandalism, and certain natural disasters. Many policies also include transit coverage, a crucial detail if a work is shipped, loaned, or temporarily stored.

Just as important are the policy exclusions. Gradual deterioration, improper storage, authenticity disputes, fraud, and intentional damage are typically not covered, though some providers can offer bespoke solutions.

Next comes the policy itself. Riders—add-ons to existing homeowners’ insurance—offer a relatively inexpensive starting point but usually cap coverage and exclude transit or storage risks. Stand-alone fine art policies, by contrast, provide specialized protection for artworks.

The process starts with documentation. Independent appraisals are key—galleries can’t ethically appraise works they sell due to conflicts of interest. “We encourage collectors to document their acquisitions as carefully as artists document their own practice,” said Silva.

Every insured artwork should have:

• A professional appraisal
• A bill of sale or invoice
• Provenance and condition reports
• High-resolution photos

“By keeping your artist records up to date, reviewing and adjusting your insurance coverage as needed, and maintaining thorough documentation of your holdings, you become your own best advocate in the event of the unthinkable,” said Victor Armendariz, founder of Chicago’s Gallery Victor.

A frequent source of confusion is the distinction between replacement value and fair market value. “These terms describe very different markets and methodologies,” Colorado-based art appraiser and gallerist of the eponymous Larissa Wild told Artsy.

Replacement value represents “what it would cost to replace the work with another of like kind and quality,” and is the figure used for insurance purposes, she said. Fair market value, on the other hand, reflects “what a willing buyer and seller would agree upon under normal market conditions,” which is typically applied in estate or donation appraisals.

Wild added that values fluctuate over time, meaning insurance appraisals should be refreshed periodically—usually every five years. She also warns collectors to be wary of “one-page appraisals” that exaggerate replacement values beyond a gallery’s usual price. “Overvaluation can lead to inflated premiums and create issues if you ever need to file a claim,” she cautioned.

Insurance can also consider the artwork’s value, location, and even the security system in your home as well as exposure to risks like floods, earthquakes, or frequent transit. “For emerging collectors, a stand-alone fine art policy is almost always the most reliable choice,” says Silva. “Transparency and good record-keeping can significantly reduce friction during claims.”

Experts agree that coverage should begin the moment an artwork leaves the gallery or the shipper’s hands. Damage during delivery or installation is more common than many realize. “The moment an artwork enters your home, it should be insured,” Wild emphasized.