Introduction
An Old Master painting acquired at a Sotheby’s auction, a contemporary sculpture purchased in Basel, or a rare piece handed down through three generations… Owning an art collection is far more than an investment: it is a passion, a legacy, and sometimes even an essential part of one’s identity.
But what happens if flooding damages your canvases? Or if a transporter mishandles a sculpture and it falls? Too often, collectors believe they are protected under their standard home insurance. In reality, such contracts reveal significant shortcomings when it comes to the complex risks associated with art. So, should you consider a specific coverage? And what are the concrete differences between standard home insurance and a “Fine Art” policy dedicated to sophisticated collectors?
1. The basics: home insurance vs. art insurance
Standard home insurance: generic coverage
- Primarily designed to protect the property itself and everyday belongings (furniture, appliances, personal effects).
- Operates on the basis of a global compensation ceiling for contents.
- Compensation often based on depreciated value (initial value – wear and tear).
👉 Example: a three-year-old television will be reimbursed well below its purchase price.
Specific art insurance
- Tailor-made to cover high-value assets, unique or difficult to replace.
- Compensation is based on the agreed value (set in advance with the insurer, without depreciation).
- Covers international risks: exhibitions, transportation, storage, restoration.
👉 Example: a painting valued at €200,000 will be reimbursed at that exact value, even ten years later, with no deduction for wear.
2. The main limitations of home insurance for art
Inadequate coverage limits
- Average ceiling for valuables: €5,000 to €20,000 per item, sometimes less.
- Some policies exclude art altogether.
📌 Real case: a client believed his €120,000 Patek Philippe watch was covered. His home insurance capped compensation at €10,000.
Restrictive definitions
- “Valuable object” ≠ “artwork.”
- Some insurers classify a painting as a “decorative item,” excluding any market value.
No coverage during transport or exhibitions
- Losses occurring outside the residence are usually excluded.
Yet artworks often live between several places: main residence, secondary home, gallery, loaned to a museum.
3. What dedicated art insurance offers
Agreed value
- Each piece is appraised and valued at policy inception.
- In case of loss, there are no lengthy disputes: the amount is fixed.
“All-risks” coverage
- Theft, fire, water damage, natural disasters.
- But also specific risks:
- accidental drop during handling,
- damage during transport,
- loss or damage while on loan to an exhibition.
Worldwide protection
- Coverage follows the artwork anywhere in the world.
- Typical case: a painting traveling between Paris, Geneva, and New York remains fully insured.
Premium complementary services
- Assistance with restoration after a loss.
- Support for conservation (humidity control, security).
- Advisory services for sales or valuations.
4. Real-life scenarios: when specialization matters
Loan to a museum
A collector lends a Modigliani to an exhibition in London.
- Home insurance: no coverage outside the residence.
- Fine Art insurance: covers transport, installation, and exhibition.
Market value fluctuation
A painting purchased for €50,000 in 2015 is worth €120,000 in 2025.
- Home: reimbursement often based on initial purchase price, subject to caps.
- Fine Art: possibility to adjust to market value with regular appraisals.
Fire in a secondary residence
A unique sculpture is destroyed.
- Home: treated as “decorative item,” limited value.
- Fine Art: full indemnification based on the agreed value.
5. Regulatory context and key figures
- Legal and insurance definitions of “artwork” vary significantly across jurisdictions. In some markets, art is included under “valuables”; in others, it is treated separately. This inconsistency often creates grey areas for international collectors.
- The global art market surpassed $67 billion in 2023 (Art Basel & UBS Report).
- Around 35% of transactions involve cross-border transport (Sotheby’s data), underlining the need for policies that follow the artworks internationally.
- In leading financial hubs such as New York, London, Geneva, and Hong Kong, most standard home policies remain ill-suited to high-value artworks: low ceilings, no exhibition coverage, and frequent exclusions during transport.
👉 These figures make it clear: regardless of jurisdiction, home insurance alone cannot adequately protect a serious collector.
6. How IFO Global supports art collectors
At IFO Global, we find that:
- 70% of new clients underestimated the limitations of their home insurance.
- In several cases, major artworks were simply not insured while in transit.
Our role goes far beyond subscribing to a policy:
- We audit the collection and associated risks (multi-country, loans, storage).
- We identify the gaps left by standard home policies.
- We propose specialized solutions (such as Hiscox Fine Art coverage), tailored to each profile.
We provide a single point of contact, capable of managing a collection based in Paris, a gallery in Beirut, and a secondary residence in London.
Conclusion
While standard home insurance is effective at protecting a house and its everyday contents, it proves wholly insufficient when it comes to the needs of an art collection. Low ceilings, lack of coverage outside the residence, and depreciation-based reimbursement expose collectors to irretrievable losses.
Dedicated Fine Art insurance provides the right solution: agreed value, all-risks coverage, worldwide protection, and conservation services.
For the seasoned collector, the real question is no longer “Do I need specialized art insurance?” but rather: “Can I afford the risk of not having it?” 👉 At IFO Global, we assist passionate collectors and art investors in setting up highly specialized insurance solutions, with the discretion and peace of mind that such unique patrimony deserves.