Updated appraisals key to ensuring artworks are properly insured

Canadian art owners should be looking into the true value of their collections and make sure they’re properly protected, especially following art losses from Hurricane Sandy, notes a prominent insurer.

XL Group’s Fine Art and Specie insurance team suggests that more Canadians are looking into investing in art, leading to value increases.

“Art is increasingly recognized as an asset class,” Anton Antonov, Fine Art Underwriter for XL Group in Toronto noted in a statement.

“In fact, according to research published by Mei Moses and other art index providers, art outperformed other equities in all periods between 2000 and 2011,” he added. “Such performance was evident in recent auctions in Vancouver and Calgary which fetched prices that were double or triple of pre-auction estimates.”

Collectors need to make sure their artworks are properly assessed, especially since basic homeowner’s insurance policies often only cover basic valuables.

XL recommends hiring an appraiser for an updated value assessment, and to determine an appropriate replacement value, most commonly at retail, of an artwork or a price for damage to a piece. An appraisal can also help with income tax and legal matters, the company says.

“Protecting the value of artwork relies heavily on having a thorough assessment every few years and working with qualified appraisers and insurers to gain the best protection,” Antonov noted.