What does Art Insurance cost?

Описание: The first thing to know is that Art Insurance is hard to get.

Insurance Companies like to deal in large numbers – the premium of many pay for the losses of a few. As a general rule if there are not many potential customers then the Insurance Company can’t make money out of it – one loss can wipe out the entire premium pool. That’s the state of play for Art Insurance. There are not that many people (relatively speaking) who need stand alone Art Insurance. What’s the Insurer’s solution – most don’t offer the cover, and the few that do need to charge higher premium to cover their risk.

We put together a deal through London, but it was not easy. We prepared a comprehensive submission on the SMSF market, risks, opportunity etc. Eventually they supported us with a great deal.

The minimum cost of our policy, once you factor in premium, fees and government charges is about $650 +/-, and as far as we are aware that’s one of the lowest in the market. The bad news and good news is that you will probably pay this cost whether you have $1000 of Art & Collectables or $50,000 of Art & Collectables. Basically the more Art & Collectables you have the cheaper the insurance (as a percent of the asset values).

What influences the cost? Type of Asset is important; Asset values are important; but the number one factor determining the cost is Security:
1. Where are the assets located?
2. What is the chance that the asset could be destroyed – by fire, by water etc
3. What is the chance that the asset can be stolen

As a general rule, we consider residential homes to be high risk, business premises to be moderate risk and storage facilities/banks to be low risk. The premium is modified accordingly. If you have a high security home (back to base alarm under annual contract; deadlocks on doors, windows etc) then you may be able to move your risk profile down to ‘low’ risk.

You may well find that the insurance cost (and accompanying storage fees) for an item stored in a storage facility are less than insurance costs from storing it at home (even without storage fees).

Our tip: the cost of improving security around your item will often partially or fully be offset by the saving in insurance premium to cover that asset.

If you would like to chat to us about ways to reduce your premium then please call us on 1300 919 342.

To learn more about Art Insurance...
Visit: http://www.selfsuperinsurance.com.au
Phone: 1300 919 342
Visit: Self Super Insurance YouTube Channel
Twitter: @SelfSuperIns