Art investors urged to insure wisely

Posted : 17-03-2005

Many people are neglecting to include their private art collections in home insurance policies, according to a new report.

Specialist insurer Hiscox is urging art investors to reflect the rising value of their collected works in home contents insurance policies.

Hiscox warns that people are too often relying on the standard level of cover for their home contents insurance, which could leave them exposed if they invest in art wisely.

The warning was issued in the run-up to this weekend's Affordable Art Fair in London's Battersea Park, which will offer UK residents the opportunity to snap up potential bargains.

Andrew Cheney, senior risk management surveyor at Hiscox, said: "If you buy something at this weekend's Affordable Art Fair, we would advise you to return to the dealer or gallery in five years time for a revised estimate of the painting's value and regularly every five years after that.

"Frequently such art can escalate in value beyond the standard percentages of old-style index linking of sums insured. Whilst casual collectors may not need a specialist insurance policy today, this may also be something to consider in five years time."

Hiscox calculated that 45 per cent of the claims it paid out on last year would not have been covered by standard insurance policies.

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