Your Database and your Insurance company. In that order!
So what do you, as a collector, need to do to protect your collection? You need to keep a record of what you have and then make sure you have enough insurance to cover it in the case of a loss. The needs of a collector can be completely stored in a software database like My Art Collection. http://my-artcollection.com/
A typical art collecting software needs to do a couple of things. One, it needs to be populated with all the pertinent details of your art collection and two, it needs to have excellent photos of each piece along with the specifics of how much it cost and what it is worth. My Art Collection software is perfect for a typical collector because In this software you can store literally millions of items and up to 6 photos of each item. You can also build a portfolio, create an insurance report and many other things.
Once you have your collection input into the software you will want to get it insured and, you will now have a good sense of how much insurance you actually need. Like most people I hate paying for insurance as much as I hate folding laundry but, in those times when I must purchase it, because it is critically important for protection, I want to know a couple of things:
First I want to know what kind of coverage I need and...
Second I want to know if I am covered completely?
One big consideration with any kind of rare collection (whether it is art or books or stamps,) is that you must have enough of the right kind of insurance.
If you have a homeowner's policy or renter's policy you need to know how much, and exactly what, it specifically covers? Do you need additional coverage because you collection is worth more than you thought? Maybe you need a specific rider policy that adds to how much coverage you have. Maybe your homeowners policy doesn't cover anywhere near the replacement cost of your collection.
Even if your collection is modest, you might be surprised to see how much it would cost to try and replace it. Your blanket homeowners policy is usually not enough. It is likely entirely inadequate. My experience is that it rarely, if ever, is even close to adequate. So always talk to your insurance agent and get input on what you need and how much you need. Remember, this is the same man or woman you will be handing over a copy of your inventory to, if the time ever comes, that you have a claim. Make sure you were both on the same page when you designed your policy.
The things that make your art collection unique also make up the few details that you need to have documented in the case of a loss. My Art Collection software will help you to detail, and track, these few unique factors that will be key when you have to make an insurance claim, want to print a portfolio or want to see a report of either that can sort 5 different ways.
When an insurance company pays you for a loss claim you can bet that it will be entirely determined on those pieces of information they can use to best verify that:
1-You actually owned that specific piece.
2-That the value of that piece is what you say it is.
3-That the piece, if replaced today is worth what you say it is worth.
4-That your policy is written to cover the claim as you need it to be (this is why you want to work closely with your agent at the time of taking out the policy)
Rule number one is "Never assume that your existing policy covers your collection." I cannot overemphasize this point. As I mentioned earlier in this post on this subject, your homeowners or renters policy most likely will NOT cover your collection in any significant way.
So what exactly are the details of your works that you need to have documented?
1-The easy ones: Artist and title
2-Your out of pocket cost for the piece and its current value with receipts when available
3-Any third party appraisal and authentication Information and
4-Photos of the item. (My Art Collection software allows the storage of up to 6 photos per entry.)
With My Art Collection you can keep all that info and also other things like a sales history, a bio on the artist, printed or pdf reports and portfolios.
One thing I have not much addressed in this 3 part blog is the actual loss of your collectibles. This can be very traumatic emotionally. Crazy and shallow but its true. Without being overly dramatic here, I am a book collector and its a fact that I am pretty attached to some of the things in my own collection. Many of the books I own were inscribed to me or, in the case of authors long dead before I was born, inscribed to someone else. In the case of a dead author, these kinds of items cannot ever be replaced. Ok so its not like a divorce or the loss of a parent or friend but, it can sure feel like it when it happens. The last thing you want to do if a disaster strikes is find out your homeowners policy only covers up to $500 of your collection (the good news is that there's no deductible...J/K I don't know.)
Good luck and always Protect Your Art Collection
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