When is the last time you had your art or antique collection reviewed? The Wall Street Journal recently stated that commodities such as art, antiques and other tangible collections account for an average of 17 percent of the assets of high net worth individuals.
Most people do not have their collections appraised until death, divorce or debt when it is normally too late to be active in managing the collection. Furthermore, many people do not see their home décor as an item that should be insured or appraised. Collectors typically hang their art on the wall for people to enjoy and do not necessarily think of their household decorations as assets.
Penny Insurance wants to ensure you are staying up-to-date on the value of your collections. We offer insurance to protect valuable art collections, precious paintings, rugs, rare books and sculptures. What matters to you matters to us and we want to protect your important belongings. To better determine the worth of your art, there are certain things you should keep in mind:
Determine the value of your art:
Most people forget that artists become famous by being represented by a dealer. The relationship between dealers and auction houses can make or break the accuracy of an appraisal. The dealer’s job is to promote the artist, allowing an art collection to reach a value that gains the auction house’s attention. Then the auction house can promote the artist increasing the demand and price of his or her work. The relationship between the gallery and auction is mutual and vital to both sides. To ensure that your appraisal is completely accurate you must determine the value of your art from both galleries and auctions.
Location, location, location:
Art can be worth more in specific regions of the country if an artist has ties to that area. For example, if an artist went to school or taught somewhere their work will be in much higher demand. Having an association with a certain region of the country will allow for a much higher cost. An artist’s relationship with a location can truly affect how desirable they are.
Chart the direction and pace of your collection:
Pay attention to the era in history from which your art collection comes—it could make a difference in your appraisal. People born in the years 1965-1979 are inheriting wealth and building art collections of their own taste. Millennials, born 1980-2000, tend to shun the art they have grown up with and desire art from their grandparent’s generation. The first generation to largely collect art, otherwise known as the Baby Boomers, are retiring or passing away. Artists from this generation are becoming valuable and increasing in worth, while art collections from Millennials are decreasing in value. As such, we recommend that you update your art appraisals every five years. Doing so is essential to determine the direction that your art collection is heading in the future. Make sure you update your records after appraising your art, so you can review the values from purchase to present.
As an art owner, only you can decide what is valuable and meaningful to you. At Penny Insurance, we are committed to helping you secure the right protection. Our insurance agents can customize a plan to cover all your works of art, from painting to rugs to rare books. Our valuable items insurance also can be extended to cover specific risk potentials, allowing coverage against breakage.
By following these tips, you can help make sure that your art appraises for its true value now and in the years to come. Contact us today to learn more about protecting your valuables.