Archive for Fine Arts & Collectibles
It is difficult to place hull and liability insurance for aircraft that are no longer produced. A damaged antique aircraft is expensive to repair because original replacement parts may no longer be available. As a result, individually fabricated parts are required. Underwriting concentrates on the pilot’s qualifications and experience in flying the particular type of aircraft because each has its own unique handling characteristics.
Antique and Classic Automobile Insurance
Restoring, caring for, and maintaining older automobiles is a popular pastime of Americans of all ages. Gatherings, parades, and tours for antique autos sponsored by antique automobile clubs take place throughout the year. These vehicles may be extremely valuable, depending on the model, age, and availability. In many cases, the expenses the owner incurs to restore the vehicle equal to or exceed its actual value. An antique automobile is usually defined as a private passenger-type motor vehicle 45 or more years of age. A classic car must be more than 20-years-old and also be a distinctive type of car. Antique and classic automobiles must be maintained for use in exhibitions, club activities, parades, and other functions of public interest and used only occasionally for other purposes. The vehicle cannot be used primarily to transport passengers or goods. Liability rates are usually much lower than manual automobile liability rates. Physical damage coverage is written on a stated amount basis. The coverages usually provided include liability, comprehensive, and collision.
Antique and Classic Boats
Antique and classic boats are pleasure boats that are no longer manufactured in the standard or conventional way. Age is not a criteria as much as the type of materials used in the original construction. Most wooden boats and classic fiberglass models are eligible. A key element is that the boat must be considered a collectible. The boat must be seaworthy in order to qualify for coverage on a full marine basis. The coverages available include agreed value on the hull, liability, uninsured boaters, medical payments, personal effects, and trailers.
Public and private art collections are difficult to insure because of the high value of certain pieces of art and their susceptibility to loss from a number of perils or causes of loss. Underwriters’ concerns include security and fire protection arrangements, regardless of where the collection is located.
In most cases, coverage applies to art on consignment to the art gallery or dealer, in addition to the dealer’s own property. It also insures art that customers remove for approval and art being transported. The value of the work of art is based on the dealer’s costs for the work. Dealer’s costs include the dealer’s purchase price plus transportation, framing, and other related expenses.
Hobbyests collect a wide variety of objects. In addition to United States and foreign coins, currency and postage stamps, other collectibles include postcards, matchbook covers, beer cans, sports trading cards, dolls, buttons, and glass bottles, to name just a few. The number and types of possible personal collections are virtually unlimited. It is difficult to determine the value of some collections or establish values on valuable single items and underwriters may be reluctant to insure such collections on a valued basis. However, it is easier to secure adequate coverage when recognized experts appraise individual items or entire collections.
Fine Arts Floaters (High Values)
Fine arts insurance coverage on both personal and commercial exposures and collections is usually written under inland marine coverage forms. In most cases, each item is scheduled and insured for specific stated amount. Because statuary, sculptures, paintings and antiques are “one-of-a-kind” art objects, competent appraisers must determine their values. Security and loss prevention measures that are subject to enforceable warranties are often required.
Furriers require two types of coverage on furs. One is traditionally referred to as furriers’ block and covers the retailer, wholesaler, or manufacturer’s owned stock of furs. The other is usually referred to as the furrier’s customer’s policy. It covers customers’ furs while in the insured’s custody. Programs are available that offer both coverages under a single policy. Coverage is written subject to specific limits for on premises, off premises, transit, and per customer item and is usually subject to significant deductibles.
Jewelers block coverage is not limited to only retail jewelers. Any risk that has jewels, jewelry, or precious metals in its inventory needs this coverage because standard commercial property policies limit coverage on such property. Every market for this coverage requires detailed applications, known as proposals that become part of the policy. Security systems with maintenance agreements are required and a warranty on the policy requires that both remain in proper operating service throughout the policyâ€™s term.
Jewelry and Fur Floaters (High Values)
Personal jewelry and fur floaters can be extremely difficult to place. In cases where it is difficult to place an entire schedule, the agent or broker may decide to place part of the schedule with an admitted company and the rest with a surplus lines market. A single high-valued item of jewelry that is unacceptable to the admitted company that insures the schedule may be insured with a surplus lines market at a higher rate. This permits pricing for the rest of the schedule to be reasonable while still providing adequate coverage for the high-valued item(s).
A number of major insurers have developed property and commercial general liability package programs for museums, historical societies, and other groups that have collections of art and antiquities. Coverage is also available for private and public collections of jewelry, antiques, and sports memorabilia, among others. Collections are written on an inland marine coverage form that usually covers flood, earthquake, theft, and damage due to changes in temperature and humidity. Insurers usually require that the insured initiate and maintain certain loss control efforts.
Musical Instrument Floaters
Musical instruments can be extremely valuable. Insurance coverage must apply wherever the instrument is, including while in transit and at non-owned locations. Homeowners policies cover personal-use instruments but not instruments used professionally. Insurance companies underwrite musical instrument coverage for professional musicians very carefully because of the high values and significant transit and off-premises exposures.
Sports Memorabilia (Baseball Cards, Etc.)
Sports memorabilia collectors can insure their collections of cards, photos, trophies, pins, autographs, apparel, and other types of valued memorabilia using a blanket or scheduled inland marine coverage form. Coverage applies off-premises and during transit in addition to scheduled locations. Retailers, exhibitors, and sports souvenir shops, along with hobbyists, can purchase this coverage.