WHAT ARE THE BIGGEST ISSUES FACING THE ART INSURANCE MARKET?
One issue is the rising value of certain types of art and keeping up with proper insurance valuations. Also, people are buying art as an investment more often, and buying quickly. This means they need more room, and we’re seeing more art stored off-site. This makes insuring it and handling a loss more complicated than when people bought art mostly to display in their homes.

WHAT IS DRIVING THIS INCREASE IN VALUE?
New capital is coming from places like China and Russia, but the amount of art is limited. There is also a lot more media and hype today about art and art prices.

WHAT’S THE MOST IMPORTANT THING COLLECTORS CAN DO TO MAKE SURE THEY AREN’T UNDER- OR OVER-INSURED?
They need to have a good sense of the market. If not, they should work with an advisor who knows that market and whom they trust. Independent appraisers will charge a fee for their work but supposedly have no conflict of interest. A dealer or someone from an auction house might appraise works for free, but you have to make sure he gives a true and honest opinion and not a sales pitch.

HOW CAN COLLECTORS MAKE SURE THAT IF THEY HAS A LOSS, IT WILL BE SETTLED QUICKLY AND TO THEIR SATISFACTION?
They need to know where the pieces in your collection are, have a good inventory system, condition reports and up-to-date appraisals. Also, they should keep off-site records.

WHAT DO COLLECTORS NEED TO THINK ABOUT IN TERMS OF INSURANCE THAT THEY MAY NOT HAVE HAD TO FIVE YEARS AGO?
They need to make sure their insurer is financially sound. They have to know who they are doing business with and that they have a healthy surplus for paying claims. Prices are climbing, claims are bigger and they need to make sure their insurer can handle that. A.M. Best lists financial ratings for insurance companies. It’s a good resource. —E.G.