Many individuals reading this article will have visited an art gallery at some point in their lives.
Even if people don’t actually count themselves as art buffs, there is something awe-inspiring about viewing in person the kind of masterpieces which have transfixed the great, good, rich and powerful over the centuries.
Of course, most of us may think that we do not necessarily have the means to acquire some of the works which hang on the walls of small or far more prestigious institutions in the UK and further afield.
However, it’s worth remembering that many of those individuals whose pieces now sell for tens of millions of pounds originally parted with their work for far less.
In the case of Pablo Picasso, now generally regarded as the most important artist of the 20th century, some of his early paintings were even handed over to pay for food and drink at his local Paris bar.
Recent research has underlined how neither age nor limited wealth nor financial speculation are inhibiting the collection of art.
Almost half of new collectors recorded by one study were under 40.
Half of those who responded to the same questionnaire had only started to collect art within the last five years and those who did so were more motivated by decoration or the desire to support the artistic community than by the wish to invest or have a cultural status symbol.
Just as no one can tell with any certainty whether an artist’s works will become popular and appreciate in value, none of us can predict what will happen to us or our possessions.
That is what insurance is for.
Even if we have spent what might be considered relatively modest sums on obtaining art, its loss can be compounded by the failure to have adequate cover.
Our concept of art loss is, in part, shaped by headlines and Hollywood’s portrayal of high-value art theft.
Yet despite the extensive experience which Broadway has in insuring collections of art and many other types of artefacts, my experience and that of many industry peers has not featured such dramatic circumstances.
Most claims have been as a result of fire, smoke and water damage but, as the toll wrought recent Californian wildfires has shown, the sums involved can still be eye-watering.
Even without such natural catastrophes, the claims process can be complicated too. A long-running dispute involving the American entrepreneur Ronald Perelman and his insurer about smoke damage following a fire at one of his properties is set to go to trial later this year.
The size and stature of his collection is impressive but many collectors with less wealth will be just as affected by damaged sustained by their own prized pieces.
It is worth, therefore, reflecting on some basic steps to bear in mind when it comes to establishing, insuring and managing a collection of art, no matter its extent or value or the pedigree of those who made it.
Perhaps the most fundamental point of all is keeping a thorough record of what works you buy, where you buy them from and how much you pay.
That information should be collated into an inventory included in your insurance schedule.
Whether or not you are fortunate enough to have a sought-after piece in your collection, it is essential to stay updated about the impact of artists’ renown.
A sudden rise in popularity – whether because they become fashionable or because some of their works sell for large sums at auction – can increase the value of other elements of their output.
That can inflate the value of your own collection and should be communicated to your insurers in order to make sure that the amount for which you’re covered keeps track of actual, current prices rather than simply the price which you paid.
The onus of doing so falls squarely on the shoulders of collectors rather than underwriters, so it’s important to do research continually, either yourself or in conjunction with your broker or art dealer.
In addition, the death of an artist can cause existing works to appreciate substantially in value and, once again, means that insurers need to know.
Even if there are no major developments in auction trends or the lives of the artists, it is worth reviewing the contents and cost of collections at least every couple of years.
Thought should be given too to where and how art is stored. Given, as I’ve said, that many claims arise from smoke or water damage, having works directly below pipes, kitchens or near a home’s main electricity points is perhaps not a good idea.
Following these simple steps may not provide complete protection but will, at least, mean peace of mind if calamity strikes.
The failure to observe that advice can result in a claim not being honoured – at all or in full.
To be sure, it is useful to speak to a broker experienced in art insurance to ensure that masterpieces do not lead to missed opportunities.
Written by Matt Rawsthorne, Private Client Executive