Art Fairs, From the Bottom to the Top

OTE President Dr. Elin Lake-Ewald at  TEFAF in   Maastrict, Holland

OTE President Dr. Elin Lake-Ewald at TEFAF in Maastrict, Holland

From Maastrict to the PierShow with little time between – that’s the way the art world can spin. My first exposure to the European Fine Art Fair in Maastrict Holland, the most beautiful and civilized art scene I’ve ever attended. There were crowds of course, but nicely mannered and for the most part smartly dressed; the food was good to taste and elegantly presented, and the dealers in the booth eager to explain the history of their wares – for three quarters of the booths presented  Old Master work and the remainder was Modern, not Contemporary.  It was an oddly smoothly experience after all the razzmatazz of the earlier weeks in Manhattan and the hustle of the latest, the newest, the most provocative.

One fascinating fact: at the Weiss Gallery booth I was drawn in by the 16th portrait of Marie de Huelstre by Frans Pourbus the Younger and got into conversation with the dealer from whom I learned that a great source of these early portraits was from the United States! Apparently when the colonists came to America the most affluent of them were accompanied by ancestor portraits (or perhaps they weren’t yet ancestors at the time). Now there is a sort of restitution – those Europe originated paintings are being brought back across the Atlantic by English dealers and finding closer connections within England and the European Union. All I could wonder was who could possibly have wanted to part with any of these portraits, even if not a sentimentalist?

TEFAF

TEFAF

On the other hand there was literally nothing in the way of jewelry and collectibles you couldn’t find at the Pier Show last weekend. Visiting that vast space on the windy water site is like landing in the middle of a thousand attics and jewel boxes spilled higgely piggely out onto the stadium floor. No Old Masterpieces to be found here, but it’s lots of fun, especially if you enjoy bargaining a bit. As noted in the nearby photos, some booths sell well, while others look as packed at the end as they were at the beginning. Most of the dealers only show at these events and hold day jobs, so for a number this is a hobby, not a profession. You may know as much as they do, so not much chance for intimidation. For the new collector, and for those who are shy about asking prices, this may be the perfect start for dabbling your toe in that swirling pond we call the Art Market.

Written by Elin Lake-Ewald

 

Ellsworth and Asia Week

2015’s Asia Week has proved itself to be one of the most lucrative and exciting art events of the year. A barrage of gallery and museum shows, lectures, and auctions litter the art scene in celebration of artwork from multiple nations. High predictions of sales were reported to be around the $250 million dollar range, in large part owing to the excitement over the Robert Hatfield Ellsworth sale at Christies.

Auction catalogs from four of the Ellsworth auctions via Christie's

Auction catalogs from four of the Ellsworth auctions via Christie's

Ellsworth’s prestigious collection contained Indian, Himalayan, Southeast Asian, Chinese, and Japanese art and is one of the largest of estates Asian art ever to come to auction. Considering that all 57 lots sold in Part I, it appears that this estimate may have been correct - including buyer’s premium this part of the collection totaled $61,107,500.

Gilt Bronze figure of a Seated Bear from China created in the Western Han Dynasty (200 BC – 8 AD)   courtesy of Christie's

Gilt Bronze figure of a Seated Bear from China created in the Western Han Dynasty (200 BC – 8 AD)  courtesy of Christie's

Part I – Masterworks Including Indian, Himalayan & Southeast Asian Works of Art, Chinese & Japanese Works of Art, had the highest selling works of the entire collection. The most expensive of which was the set of four 17th Century Huanghulai Horseshoe-back arm chairs that sold for over $9 million (estimate of $800,000 – $1.2 million). Another work which defied its estimate was the Gilt Bronze figure of a Seated Bear from China created in the Western Han Dynasty (200 BC – 8 AD) which was estimated to sell for between $200,000 to $300,000 and sold for $2.8 million. According to our Asian art specialist collectors were enamored by this small totem - its rare pose and subtle characterization.

However, it was not just Chinese art that did well in the sale. The second highest price was for a large gilt bronze sculpture of Avalokiteshvara from 13th Century Nepal which sold for $8.2 million (estimate of $2-3 million). A “rare and important” bronze figure of a seated Yogi, possibly Padampa Sangye sold for $4.8 million, a little more than $3 million over the high estimate.

Part II, which included Chinese furniture, scholar’s objects, and Chinese paintings, still reached high prices and totaled $39,137,625. Part III – Chinese Works of Art: Qing Ceramics, Glass & Jade totaled $8,189,875, Part IV – Chinese Works of Art: Metal, Sculpture & Early Ceramics $15,840,625, Part V – European Decorative Arts, Carpets, Old Master Paintings & Asian Works of Art $6,207,688 and Part VI – The Library $1,176,875. The extraordinary results of these sales pay tribute to Ellsworth’s genius in the field of Asian art - something for which OTE can attest, as over the years he advised our firms president on the Asian market and, in particular, the estate of C.C. Wang.

The Ellsworth sale has amounted $132 million at auction, no doubt in large part because of the incredible provenance of his collection. As the Asian art market is becoming more overheated and frenzied, provenance is becoming increasingly more important in legitimizing extraordinarily high prices for classical Chinese art.

Although they were arguable overshadowed by the Ellsworth sale at Christie’s, Sotheby’s Asia week sales also did well. Their most successful sale appears to be Fine Classical Chinese Paintings & Calligraphy which netted them $41,441,375.

However Asia week is not just about big sales, it is also an amazing time to learn more about the art history and development of countries throughout Asia. A lecture I attended at the Korean Society, ‘Adoption, Assimilation, Transformation,’ with Robert D. Mowry discussed some of the most important developments in Korea’s art history and its relationship with China.

Geumgang Jeondo (금강전도 金剛全圖) by Jeong Seon

Geumgang Jeondo (금강전도 金剛全圖) by Jeong Seon

During the lecture Mr. Mowry spoke about the distinctly Korean style of landscape paintings typified by the painter Jeong Seon 정선 / 鄭敾 (1676–1759), whose pen name Gyeomjae meant humble study. He lived during the Joseon Dynasty and is one of the few known Korean painters to move away from traditional Chinese styles. Another, Shin Yun-bok (1758-early 19th C), paintings of people reveal a humor that is also uniquely Korean. Their paintings present a contextual history for some of Korea’s modern painters such as An Jung-sik (안중식, 1861-1919).

Scenery on Dano day (단오풍정 端午風情) by Shin Yun-bok , in the Gansong Art Museum in Seoul, South Korea

Scenery on Dano day (단오풍정 端午風情) by Shin Yun-bok , in the Gansong Art Museum in Seoul, South Korea

Overall it was a great week to experience some of the world’s most beautiful art and culture.



Art, Art and More Art: Armory Week 2015

Similar to past years 2015 had an intensely packed schedule of art fairs and events. The foremost of which is the Armory show itself which this year hosted 199 galleries from 28 countries around the world. Other major art fairs included the ADAA show, SCOPE, PULSE, Spring Break, Independent, Art on Paper and Volta.  Overall an excitingly exhausting amount of art, some good, some bad.

Le Rêve   by Cameron Gray at Carl Hammer Gallery (Chicago, IL) - The Armory Show

Le Rêve by Cameron Gray at Carl Hammer Gallery (Chicago, IL) - The Armory Show

Detail of  Le Rêve   

Detail of Le Rêve 

 At this year’s art fairs there was no shortage of whimsical pieces made of unusual materials or using innovative techniques. At the ADAA Art Show,  Armory Show, and Volta we enjoyed works with the trompe-l'œil, illusionary quality that invites the viewer to take a closer look.

This iteration of Le Rêve by Cameron Gray at Carl Hammer Gallery (Chicago, IL) is actually a skillfully composed mosaic of tiny florals. Three steps back, the eye combines them into the lyrical form of Picasso’s famous mistress.

 At Adler & Conkright Fine Art (New York, NY), a quiet, clever work on paper by Liliana Porter features a wire eyeglass frame collaged atop its silkscreened shadow (in the slideshow below).  

A large and intricate geometric pattern by Leonardo Ulian shown by The Flat – Massimo Carasi (Milan) initially appears to be a web of jewels, but further examination reveals it to be a network of electrical components.

Detail of  Leonardo Ulian's work

Detail of Leonardo Ulian's work

Leonardo Ulian peice at the Flat - ADAA Show

Leonardo Ulian peice at the Flat - ADAA Show

A cheekily funny work that could easily be passed over, were it placed almost anywhere besides at the center of a contemporary art collection, is Gavin Turk’s American Bag at Ben Brown Fine Arts (London) (in the slideshow below).  Looking like a jumbo-sized black garbage bag it is an interesting statement piece for home or yard. Humble as it is, the label confirms it is painted bronze.

One fair that stuck out of the crowd was Spring Break. Located in a derelict post office Spring Break is a curator-driven art fair started by Ambre Kelly and Andrew Gori in 2009. Unlike its counterparts this fair is focused on installations and experiential art and is definitely a bit more rough around the edges. We loved the Christine Sciulli Propulsion Field light installation. For many it seemed like an oasis away from the other gallery driven art fairs, one that was willing to experiment and even get a little gritty. 

A Night at Blumka Gallery

The cocktail reception at Blumka Gallery, hosted by Anthony Blumka and Florian Eitle-Böhler on January 27. The night most of Manhattan closed down for the snow blizzard that never happened. Fortunately, that did not keep the die-hard art connoisseurs of Medieval, Renaissance, and Baroque fine and decorative arts at home.

Open only by appointment, even with a room filled with the art patrons, museum donors, curators, educators, and in this case an appraiser, the gallery space still had a calm and serene museum cathedral-like environment. Just take a look inside one of their vitrines, which could have been as well inside the Metropolitan Museum of Art or the British Museum.

The Blumka gallery is one of the most important galleries that cater to private clients who collect these centuries old master works. Seen were curators and educators from the Metropolitan Museum of Art and the Frick Collection. The appraiser’s former professors were there who also work at these museums. These art professionals appreciate the well edited works of art that Blumka provides to its patrons, who often donate these works to art museums and institutions.

It was a very enriching and entertaining night even if most of the city was hunkered down at home. At least, we learned something about what the highest aspirations of Western cultural heritage can offer. At Blumka Gallery, you will be rewarded many times over.

Estates & Attorneys: OTE at Heckerling 2015

OTE’s first year at the Heckerling Institute on Estate Planning was full of talk of Art Leasing and Fractional Discounting. That we offered these services seemed to surprise attendees who tended to be more familiar with business valuation.

It was probably the first time that any of the attorneys or financial planners discovered that an art appraisal firm was capable of complex valuations outside of the usual insurance, resale or donation practice.

One conference highlight for OTE representatives was the chance to speak with some of the attorneys involved in the recent Elkins case. When the Fifth Circuit awarded the Elkins family a $14.4 million estate tax refund and allowed for the use of fractional interest discounts for artworks, it was a great thing for collectors and OTE.  This was exciting for us as, more than twenty years ago, OTE was the first firm to successfully win a substantial discount for our client in an estate that contained works of art.

This was also the first time the OTE unveiled our new brand image and we were proud to have a clean new aesthetic to bring with us to Heckerling.

We were extremely happy with the positive response we received from the people we met at the conference and we are excited about participating again in 2016. See you there!

Feel like a bite? OTE's edible appraisals

A Mayan chief forbids a person to touch a jar of chocolate, (more than a thousand years old, via wikimedia)

A Mayan chief forbids a person to touch a jar of chocolate, (more than a thousand years old, via wikimedia)

In honor of Thanksgiving, a holiday with a distinctly foodie focus, we thought it might be fun to have a blog post dedicated to our experiences with food art.

Unsurprisingly throughout art history food has been the subject of many a painting/ sculpture/print/wood carving, and, let’s be honest every other kind of medium. Recent times have shown that it is more than just a subject. Contemporary artists have transcended merely depicting food to using it. Take Rirkrit Tiravanija’s conceptual installation/performance piece untitled (Free). Originally shown at 303 Gallery in 1992, it was recreated at MoMA as part of the Contemporary Galleries: 1980–Now installation in 2012. The exhibition converted a gallery into a kitchen where the artist served rice and Thai curry, using food as the medium with which to create art and a unique visitor experience. This piece is not alone.  In 1958 during the exhibition The Specialization of Sensibility in the Raw Material State into Stabilized Pictorial Sensibility, The Void Yves Klein served blue- cocktails to gallery visitors asking them to literally consume the artwork. Vik Muniz, a Brazilian artist is well known for his chocolate syrup drawings, one of which was of the Leonardo's ''Last Supper.” 

Chocolate

Chocolate

However, OTE has found that there are some unique challenges for owners of art using material as short-lived as food.

One of OTE’s many memorable appraisals, this case featured an artwork made of white, milk and dark chocolate and ink jet print laid on canvas. The damage was the result of a gust of wind that had caused fragile portions of chocolate to separate completely from the canvas. Sadly, the lost pieces of chocolate were not recovered. This was not the only damage the appraisers discovered. In one corner there was evidence of a mouse having nibbled on the yummy artwork. In this case the artist had intended for the work to “evolve,” which actually allowed for the loss of some of the chocolate and tampering from rodents and other animals. Less cute was the appearance of mold on other parts of the piece. The extent of the damage meant that it would need restoration, and ultimately sustain a substantial loss in value. Restoration required consolidating and re-adhering lifting/peeling areas of the material; unfortunately both costly and time consuming.

Another dilemma au chocolate involved a painting where the artist had stuck M&M’s to canvas, covering them in resin, and using them to dye the surrounding surface. Some of the M&M’s had become damaged (as seen in the picture below) and we had to determine whether this was the result of some sort of accidental damage or whether it was the inherent vice of the materials (i.e. the result of the materials themselves).  Research included some interesting conversations with a confused and curious customer service representative from Mars (the company that owns M&M). From her reaction we gathered that Mars did not often get questions like: what is an optimum temperature for an M&M? How long does the dye on an M&M last? How long would it take an exposed M&M to deteriorate, and what would this be if say the M&M were covered in, hypothetically, something like resin?

Detail of the damaged work

Detail of the damaged work

What we found out was that once you open the bag, Mars pretty much doesn't care what happens to M&M’s and really doesn't like to speculate. What could be extrapolated was that in the bag M&M’s should be stored at around 70 degrees in a cool dry place and that when exposed to heat M&M’s were likely to deteriorate more quickly. Probably, the Mars rep grudgingly admitted, it wasn't a stretch to say that M&M’s were indeed likely to deteriorate naturally over time, even when covered in resin. Following this data collection process, and our examination of the piece it was determined that it was the inherent vice of the M&M’s that was responsible for the loss. Mice, it seems, were not as industrious as our previous case had led us to believe.

If you choose to own something as wonderfully transient as art made with food, expectations of the work should follow accordingly. You may have to face the fact that something wants to eat it.

 

 

Opening Night at the IFPDA Print Fair 2014

Opening night at the Print Fair brought crushing crowds and some amazing power on paper!

 A growing market for early 20th century British printmakers seemed to grow exponentially as several dealer booths focused on displays by Sybil Andrews, CRW Nevinson, Claude Flight, Margaret Barnard, Cyril Edward Power, and Lill Tschude, much admired but scarcely known in the US. Prices ranged from the low $30,000s to over $100,000, so it’s clear that there is as strong market for these vigorously colored linocuts. Kempner Gallery appeared to have the largest selection.

 Equally striking, but in the most subtle of ways, was an unusual series of eight silkscreens by Fred Sandbeck priced at $25,000. Famed for his string sculptures, these prints showed the varied configurations of a structure of strings as if it were in motion. At Diane Villani, publisher.

 At Barbara Krakow was another series of nine geometric black and white silkscreens from a set of ten (I still can’t figure that out), by Sol Lewitt, from 1982, and also priced at $25,000.

 So much to see and so much to remember, but two prints whose images remain with me: an engraving by William Black of Chaucer’s Canterbury Pilgrimage for $60,000 at the Fine Art Society of London, and at Hill-Stone an etching of Death and the Knight, a beautiful impression, for $225,000.

 This year may have brought in the largest group of non-American dealers that I can remember, and certainly a great number of non-New York dealers, a good many from Chicago. Definitely a sense of energy and excitement prevailed, but the increase in prices for prints was discernible. Perhaps, at any price, prints can be made to seem like near giveaways in the light of the  prices at the auction sales currently going on.

Written by Elin Lake-Ewald, Ph.D, ASA, FRICS


What to Look for When Collecting Photographs (part I)

"A True Photograph need not be explained, nor can it be contained in words" - Ansel Adams

While this holds true in the visual appreciation of a photo, when purchasing at auction you may want to be a little more loquacious. At a lecture in conjunction with Heritage’s October photography auction in New York City, OTE staff picked up some tips for collecting photographs. Rachel Peart, Heritage Director of Photography and Alice Sachs, the President of Art + Business Partners and an avid collector of photography, stressed a number of elements important for buyers to evaluate, whether purchasing from an auction or private sale.

The market for photography has remained relative stable over the last couple of years and as of June of this year ArtTactic reported the overall confidence in the market increased by 9 percent. Sales at auction have also increased. The Modern Photography market saw a 22 percent increase and the Vintage photography market had a particularly large increase of 125 percent, while the market for Contemporary photography remained the same from 2012 to 2013 (ArtTactic Photography Market Report January 2014). However, it is the Contemporary market that continues to drive sales at the top end. Prices for iconic photographers (i.e. Man Ray and Alfred Stieglitz) can get into the hundreds of thousands of dollars while a large percentage of sales are affordable, under $10,000.

The photography market is a tricky one. Collecting is often motivated by rarity and personal aesthetics, which makes paying attention to a photograph’s catalog description key.  This may seem basic, but interpreting how a photograph’s print date and the print type relate to an artist’s market is more confusing than it looks.  In a typical description of a photographic lot at auction there is the artist’s name followed by the italicized title and a date (in red in the example). This represents the 'negative date' – the date when the photographer took the image. 

Example of a catalog description from the Heritage October 16, 2014 Photographic Auction

Example of a catalog description from the Heritage October 16, 2014 Photographic Auction

Example of a catalog description from the Heritage October 16, 2014 Photographic Auction

Example of a catalog description from the Heritage October 16, 2014 Photographic Auction

The actual date when the photography was printed is usually found either next to or as a part of the type of print (gold star above). For the Bernice Abbott photograph above “Vintage” is the only indication of when the photograph was printed. Some photographs, like the Cindy Sherman photograph on the right, are accompanied by the exact printing date (also in red). The print date informs a collector about how the specific photograph fits into the timeline of an artist’s body of work. The context of a photograph produced significantly later than the negative date is different than one printed close to when the photograph was originally taken and is a variable to be taken into account when purchasing.

Here is a guide to non-specific print date references:

  • Vintage Print: printed within five years of the negative.
  • Early Print: printed within ten years of the negative.
  • Later Print: printed at least ten years after the negative.
  • Modern Print- printed many years after the negative.
  • Posthumous Print: printed after the death of the artist.
  • Contemporary Print: currently being printed.

How much the date of printing matters in the valuation of a photograph depends on the artist. Bill Brandt’s (British, 1904-1983) later prints are darker and are valued differently than his early prints. Some descriptions will specify the person who printed them. If someone other than the artist printed the photograph it can have a strong impact on value; positive or negative, depending on their relationship with the artist. Photographs by Ed Weston (American, 1886-1958) printed by his sons are considered valuable because they were trained by him and followed his methods, but if the photographs were printed by another party this would likely not be the case. The type of photograph (the process used to create the print) is a variable that should not be overlooked.

The most common types of photographs seen at auction are:

  • Gelatin Silver: a black and white print made from 1870s to the 20th century.
  • Chromogenic prints: (also referred to as C-prints) color prints made since 1940.
  • Dye Transfer: color prints made since 1928.
  • Digital prints: (also called Digital Inkjet prints) a printing process developed recently.

In looking at the type of print it is helpful to know an artist’s typical practice. While rarity is often a positive attribute, this is not true in all instances. Ansel Adams is well known for his gelatin silver photographs in black and white and though his color photographs are rarer they are not as well received at auction. Aesthetic considerations aside, successful purchasing decisions are often based on understanding what specifically to pay attention to for an individual artist.

This blog referenced information from:

 

Piano Restoration: A Sound Investment

When you own something as melodiously beautiful and expensive as a Steinway piano there are factors to be aware of in the event of water damage. From a pipe leak to hurricane Sandy, OTE appraisers have found that water and moisture are among the most common and harmful types of damage to pianos.  Piano cases are made of wood and are particularly susceptible but then so are most of the parts:  the felts, keys, soundboard, pin-block, tuning pins and strings, etc. Prolonged exposure to water can even lead to corrosion and rust in the metal components.

There is, however, a solution. When Alanna Butera, an OTE specialist appraiser, visited the original Steinway factory in Queens, she saw firsthand how Steinway pianos are built and restored.   

Steinway Grand Piano,   Photo: © Copyright Steinway & Sons via Wikimedia Commons

Steinway Grand Piano,   Photo: © Copyright Steinway & Sons via Wikimedia Commons

Steinway & Sons, one of America’s leading piano manufactures, was founded in 1853 by German immigrant Henry Engelhard Steinway who began as a master cabinet maker.  By 1900 the factory had moved to Long Island City in Queens which is still in operation today and where pianos are built and repairs take place.

A Steinway Grand Piano can take over a year to build through handcrafting. Not only does a Steinway piano produce beautiful music, it is an excellent investment.   According to Reuters: “A 10 year old Steinway in good condition, usually sells for about 75 percent of the current retail price, which goes up about 4 percent each year;” that’s a lot better than your car. Steinway even issues a five year warranty on their repaired pianos, the same warranty they give to new pianos.

From an appraisal standpoint, a damaged Steinway piano repaired by Steinway can be valued at 85% of the current retail price of a new one. But restoration isn’t cheap. In our experience the cost for a restoration caused by water damage is approximately $30,000 to $40,000 for a single grand piano.

Close up of a piano in progress at the Steinway factory

A peak into Steinway's factory in Queens

On the positive side, what our appraiser observed at the Steinway factory is that you can be certain time and care is taken in restoration efforts.  When Steinway restores pianos they keep the cast iron block and original case, barring any extensive damage to either. They then refinish, re-guild and replace all the hardware with Steinway parts, entirely by hand. Steinway still continues to provide hand rubbed finishes. To maintain the value of a Steinway piano, restoration and replacements should be done solely by Steinway, using only their authentic parts. Steinway restorations come with a certificate, so if you are thinking of selling make sure to hold onto it. 

Steinway calls their pianos a “sound investment” and we happen to agree.

Appraisal or Estimate? Why Free Is Not Always Better

I spoke with someone recently who told me how they got all their appraisals for “free” at auction houses. What they got were not really appraisals but estimates of value.

An estimate by an auction house will likely only reflect what the auction house believes the seller will receive at auction. These sorts of “appraisals” are not good for insurance purposes and are not viable in court. Most art insurance policies rely on the retail replacement value, meaning the compensation would be for the retail value  of an artwork, as opposed to the price at auction (which is usually lower than a retail value).

This article is by no means knocking auction houses, which have amazing experts and specialists, but it is important to understand that an auction house’s primary job is to sell art, and offering a free estimate is one way to draw in business.

If you go to an auction house and are not serious about selling with them but merely attaining a value this is probably not the best option for you. Although auction houses have a considerable amount of information at their disposal, they rarely have time to conduct extensive research into an artwork that is not being consigned to them. A free estimate is not necessarily giving your artwork the time and attention it deserves.

The case of Ravenna v. Christie's in 2001 is a good example of relying too heavily on a free estimate. Guido Ravenna sued Christie’s as a result of his wife’s meeting with an Old Master Specialist at Christie’s in New York after she was given mistaken information about the provenance of the painting. The Old Master’s specialist, after only seeing photographs of the work during their short meeting, valued it at between $10,000 to $15,000, as he thought it appeared to be the work of minor 17th Century Italian painter, Nuvolone. Ravenna, then sold the work for $40,000 to a dealer who only months later consigned the work to Christie’s. 

The Lamentation, by Ludovico Carracci

The Lamentation, by Ludovico Carracci

This is where it gets a little sticky. After the painting was examined again, it was determined to be a work not by Nuvolone but rather by Italian Baroque painter Ludovico Carracci, who is far more significant. The Lamentation, as it was renamed, was sold at auction in 2000 for $5,227,500 to the Metropolitan Museum of Art where it now resides. Ouch.

Heritage Auctions does a good job of explaining how auction house appraisals/estimates work:

“Usually, the request for an "appraisal" actually refers just to an evaluation for the potential value of an item through auction or private sale… Heritage regularly provides quick and free evaluations of the current market value of art or collectibles. This is in the form of a verbal or written auction estimate — the range of value that one would expect to see the item sell for in today's auction market. This valuation is not intended for use as a formal appraisal or for any purposes of establishing a value for insurance, tax, estate planning, collateral or third party transactions.” (Heritage Auctions - Defining Appraisals)

If you want to divest an artwork quickly, auction houses are the way to go. But if you are serious about finding out about the value of something you own, make sure you get an authentic written appraisal from a USPAP certified appraiser.

 

Why It Is Important To Insure Your Art

In New York City Hurricane Sandy was a wake-up call for many art enthusiasts to insure their art but there is still a lot of uninsured or underinsured art out there. According to Kathryn Tully in 2012 article for Forbes “the premium value of insured art globally was somewhere between $500 million and $1 billion. If those estimates are right, there’s a lot of uninsured art out there.”

Many people have collections of art, or perhaps just one valuable piece but rarely know exactly what they are worth.  It is surprisingly easy for a painting, sculpture or even a more experimental piece of art to be damaged due to some unforeseen event, which is why it is important to be aware of its value. This summer alone there has been a significant amount of flooding in the tri-state area, and this has resulted in thousands of dollars in damages. 

To protect your investment obtaining an appraisal of the retail replacement value means that you will be sure you have the right insurance coverage. The majority of standard home-owners insurance policies have limitations in regards to what can be reimbursed in the event of damage or loss to art and antiques.  So it is a good idea to look closely at your policy if you are not exactly sure what your insurance covers. 

If you are a serious collector you will probably need a more specialized policy tailored specifically to your collection. Insurance companies that are particularly qualified for this are: AXA, Chubb, and AIG.  However, it is still important to be aware of your art’s value as the years progress.

The art market is continually fluctuating which is why it is a good idea to update these appraisals every couple of years. The value of your art will probably change with the shifting market. Unlike other luxury goods, such as a Chanel handbag or a BMW, a work of art is unique and difficult to replace.  This is why using an appraiser who is USPAP (Uniform Standards of Professional Appraisal Practice) certified and a member of the ASA, RICS, or ISA, is essential.  An appraisal by a qualified appraiser will be fully researched and legally sound. And always make certain, no matter who the appraiser is, that he or she has the right experience to evaluate the specific piece you own.