A Lesson That Changed Everything
I was 23, living in Italy, when my friend got engaged. Her boyfriend had flown over from the States during spring break with a modest but beautiful ring. The next weekend, we decided to explore Venice. Not wanting to risk losing the ring while sightseeing, she left it safely in her apartment.
Or so we thought.
That night, burglars broke in. The ring was gone.
My first question wasn't about calling the police or checking with neighbors—it was immediate and practical: "Did he insure it?" Thankfully, he had. That moment opened my eyes to something I'd never really considered: the complex world of insurance for fine art, antiques and jewelry.
When Beauty Meets Business
| A restorer is patiently filling the gaps of the much-damaged frescoes in the crypt of Sant'Eustorgio church at Milan, Italy. Circa 2007. Source. |
Here's the thing about collectors—most of us live in two worlds at once. There's a world where we fall in love with a piece because of its craftsmanship, its story or simply because it speaks to us. Then there's the practical world where we recognize these objects as significant assets that need protection.
Some people start collecting as investors, treating art like stocks in a diversified portfolio. Others begin because something catches their eye and tugs at their heart. But eventually, almost everyone finds themselves juggling both sides of this equation.
And that's where it gets complicated. The more you love something, the harder it becomes to put a price tag on it. How do you value your grandmother's portrait or that sculpture you bought on your honeymoon? Yet insurance demands exactly that—a number that somehow captures not just monetary worth, but replaceability.
When Everything Goes Wrong
| An empty frame remains where “The Storm on the Sea of Galilee” was once displayed. Picture provided by the FBI showing the empty frames for missing paintings after the theft at the Isabella Stewart Gardner Museum. Source. |
It is not news that insurance dominates headlines with reports of escalating premiums and carriers refusing coverage in regions prone to severe weather events. While this affects all personal property, art's extraordinary value creates unique complications. Under ideal circumstances, art proves safer than collectible automobiles or jewelry precisely because it remains stationary. However, it remains vulnerable to both human error and natural disasters.
The 1990 Gardner Museum heist exemplifies this vulnerability. Two thieves, disguised as police officers, walked away with thirteen masterpieces valued at approximately $500 million, including works by Rembrandt and Vermeer. Those empty frames remain on the museum walls today—a stark reminder of how irreplaceable cultural artifacts can vanish without warning.
The September 11th attacks brought immeasurable human tragedy that continues to resonate today. Less widely recognized is that approximately $110 million in artworks, including pieces by Alexander Calder and Louise Nevelson, were also destroyed. Many of these works lacked adequate insurance coverage. While no material loss compares to the human cost, the destruction of these cultural treasures forced insurers to confront terrorism risk and the vulnerability of urban collections.
In 2024, Hurricane Beryl swept through Houston, damaging three paintings at the Rothko Chapel, a sacred space dedicated to religious meditation. The chapel reopened six months later, but the incident served as a critical reminder to insurers and cultural institutions that even priceless works remain subject to forces beyond human control.
The Reality of Risk
Collecting art and valuable objects is undeniably a risky business—not because collectors are careless, but because these objects are one-of-a-kind and vulnerable in ways we don't always anticipate.
| This is a photo of our TEFAF 2025 installation of Portrait of Emilienne Le Roy by Giovanni Boldini. Our paintings had to fly all the way from New Orleans to the Netherlands, and thankfully remained in perfect condition. |
Where you live matters more than ever. California wildfires, Florida hurricanes, flooding in coastal cities—insurers now look at your zip code as carefully as your collection. They want to know about your fire suppression system, climate control, security setup and how quickly emergency services can reach you.
Moving artwork around, a very crucial part of the industry, adds another layer of risk. Every time a work leaves its secure spot for an exhibition, loan or sale, something could go wrong. Even with the most seasoned professionals, handlers make mistakes, environmental conditions change and accidents happen in transit.
The 2024 California wildfires drove this home dramatically. Many people saw shocking images of the Getty Museum surrounded by flames as wildfires moved quickly through the Los Angeles area. Some may not know that the Getty actually had some of the most sophisticated disaster protection in the area—specialized fireproofing, advanced air circulation systems and natural firewalls. Many private collectors nearby weren't so fortunate.
Finding the Right Coverage
| Our Marc Chagall exhibition was a global effort, with many paintings that were sent from Paris and London. Esquisse pour tableau l'Opéra by Marc Chagall is featured. |
Many collectors quickly realize that fine art insurance isn't like a homeowner's policy. Some people choose to add some art coverage to their existing policy, but umbrella policies often have caps that don't reflect today's market values. Usually, these policies are updated only once a year.
Itemized fine art insurance takes more work upfront, but for many with active collections (adding, selling, loaning, etc), the labor is worth the cost. Each piece gets individual attention based on its specific history, condition and current market position. While this assemblage of data is tedious to collect, it is by far the best way to secure real-time cost updates, especially as the art market moves so quickly.
When to Start
People always ask: "When is my collection valuable enough to insure?" Many insurance professionals would say that is the wrong question, and might tell you it's not about your collection's current value—it's about where it's headed. If you're acquiring a piece or two each year, especially from emerging artists or established schools, you can quickly find yourself with substantial assets. Waiting until your collection feels "significant" often means scrambling to get appraisals and coverage for pieces with circumstances that may have changed.
Starting early also saves headaches down the road. You avoid the stress of batch appraisals, sudden market jumps or unexpected coverage restrictions due to your location or loss history. Like estate planning, it's much easier to handle proactively.
How Value Gets Determined
Insurers use a blend of hard data and expert judgment to figure out what your pieces are worth. First, they work with licensed appraisers who specialize in each type of collection. They look at artist reputation, sales history, medium, condition and provenance. They also track market trends—auction results, gallery activity and museum acquisitions. Living artists or rapidly expanding markets need special attention.
Consider contemporary artist Banksy, whose print "Girl with Balloon" originally sold for approximately $190 in 2004 but now commands over $625,000 at auction, with special artist's proofs reaching over $1.25 million. For such contemporary art markets, insurance policies may require annual appraisal updates, as a collector who purchased a painting for $5,000 could find it worth hundreds of thousands or even millions of dollars years later.
Insurers also consider one’s collection's risk profile: any previous losses, how often pieces move around and where they're stored. A climate-controlled vault in Manhattan carries different risks than a beach house installation in Florida.
A client’s motivation matters too. Some collectors want full replacement value protection. Others focus on conservation costs. Museums often insure incoming loans more rigorously than their permanent collections, having more faith in their own protective systems than items in transit.
Why This Matters
Almost all of our clients are not simply acquiring beautiful objects—they're preserving culture, supporting artists and building legacies. Insurance is less about paranoia or worst-case scenarios; it is about ensuring that the beauty and meaning you've gathered can outlast the inevitable uncertainties of life.
We take great pride in caring for all of our remarkable objects, and we’d love to see them last for centuries more. To learn more about the ins and outs of the art trade, be sure to check out our other blogs and guides!
