When buying a painting or a precious object, you ask yourself how to buy art and protect it properly.
What is a work of art in the legal sense of the term? What type of insurance contract to choose?
Should we use an insurer specializing in art? How to insure an artwork? We talk about it in this article.
According to article 98-A of the Tax Code, the following objects are considered as artworks :
To insure an artwork you must first assign a value to it.
This valuation makes it possible to establish the amount of the insurance policy and compensation in the event of a claim.
At the time of subscription, the insured may opt for a declared value insurance contract or an approved value insurance contract.
An insurance contract is said to be declared value if the insured alone estimates the value of his property without the intervention of an expert and without control by the insurance company.
In this context, a global amount is declared.
In the event of a claim, the compensation may not exceed the insurance value entered in the contract at the time of subscription (article L. 121-5 of the Insurance Code).
If the price of the work exceeds the sum guaranteed on the day of the loss, the insured party bears part of the damage.
In accordance with article 1315 of the Civil Code, it is the responsibility of the insured to prove the price of the works.
Photos, invoices, certificate of authenticity can be used as supporting documents for the insurer.
Insuring your works of art at declared value involves risks if their price is likely to fluctuate in a short period of time.
This is commonly the case in the contemporary art market.
An insurance contract is said to be agreed value, when the insured determines the value of works of art in concert with the insurer.
In this case, it is common to call on an expert for the valuation of the goods.
On the basis of this expertise, a list or an inventory of the works is drawn up.
The insurance premium is calculated from this declaration.
Each time the contract is renewed, the insured can have their guarantees corrected to stay as close as possible to market fluctuations.
In the event of a claim, the insurance company reimburses on the basis of the value shown on the contract. The insured does not bear the burden of proof.
What risks can threaten your artworks?
What type of guarantee can provide effective protection for your collectibles? We look in detail.
Other types of risks, inherent in the art world, can threaten your collectibles:
Depending on the value of the works of art to be insured, you can opt for three types of insurance.
Find out more:
Art market
Choosing an artwork
Preserving an artwork
What is an artwork?