Rise in art theft calls for specialised cover
CARTE Blanche recently exposed the growing criminal underbelly of art theft in South Africa, where expensive paintings, drawings and sculptures – stolen from wealthy South Africans’ homes to be sold on the black market – are fast becoming one of the best illicit currencies for organised criminals.
With the price of fine and classic art in the country having risen by 28 percent over the past 10 years, many of the valuable artworks that are stolen are grossly under insured.
Victims of art theft are often disappointed to find that the insurance cover they have in place is not adequate for their art collection. This is partly a result of pieces having appreciated significantly in value over time – either upon the death of the artist or depreciation of the rand-exchange rate – and because many general household insurance policies apply a minimum value limit per item insured, and therefore fail to provide sufficient insurance cover for an artwork that exceeds the assigned value.
Catering to the needs of high-networth South Africans must include access to a panel of experts who can assess the value of their artworks.
Something as meaningful as a personal art collection should not be overlooked, and in order to insure the pieces for their correct value and cover options, there are a number of unique factors that need to be taken into account.
There are cases where a commissioned piece that is not yet completed will have no insurance cover. Sometimes, individuals will commission an art piece, which usually requires a deposit. If the work in progress is stolen, or the artwork is damaged before it is completed, insurance cover will allow the client to recover the deposit put down for the commissioned piece.
Similarly, artwork will typically have to be transported from studios or galleries to the individual’s property.
What if thieves were to intercept the piece during transit, or if the piece were to be destroyed in an accident?
To cover the risks associated with the transit of valuable pieces, as well as the other unique risk factors associated with art, specialist cover is no longer even a question for serious collectors.
With art theft on the rise, South Africans need to ensure that their valuable pieces are insured comprehensively and at their current market value, to avoid financial loss.
Christelle Colman is the managing director of Elite Risk Acceptances.