(March 2024)
The ISO Fine Arts
Form is an inland marine coverage, protecting objects of fine arts against
direct damage. Besides existing as separate coverage, protection may be written
as an endorsement to a Homeowners policy.
Inland marine coverage can be purchased using this form to cover a single class of property. Coverage is also available under a personal articles floater. The latter provides protection for objects of art along with several other property classes.
Related Articles:
ISO PM 00 09–Personal Articles Standard Loss Settlement Form
Fine Arts Additional Considerations
Hobbies–Hazards and Opportunities
The schedule includes
areas to select coverage for the following classes of property:
·
Unscheduled
Property – Blanket Insurance
Note: This is only for low valued items because the maximum payment is $500
per item and cover is based on the actual cash value of the item.
·
Scheduled
Property
The form has additional space for specifically listing (scheduling) items,
to indicate whether breakage coverage is included and the type of settlement
option that applies.
Related Article: Common Policy Provisions
Fine Arts Form
coverage applies globally to all items listed as covered property (which must
be owned by the named insured).
1. Scheduled and Unscheduled
Fine Arts
Regardless whether protection applies specifically or on a blanket
basis, items classified as fine art are subject to the following:
a. Coverage applies only to items of fine art
that are owned by the named insured and:
(1) (2) The applicable premium that appears in the
schedule is based on the information the named insured supplied on that
property’s location
(3) If any covered items are moved from or to
the listed location, it may only occur if the items are properly handled (packed
and unpacked) by competent personnel.
In other words, losses involving any fine arts might be voided if the
loss circumstances involved either unlisted locations or improper handling.
b. This applies to the following private, as
opposed to commercially oriented classes of property:
(1) Drawings (refers as well to etchings,
lithographs, paintings, pictures, or tapestries)
(2) Windows made of art glass
(3) Legitimate artwork (includes, but is not
limited to antique furniture/silver, bric-a-brac,
porcelains, rare books [including manuscripts], rare glass, rugs, and statues
[bronze or marble].
(4) Other rare items that have measurable
artistic merit or historical value.
2. Newly Acquired Fine Art
An important benefit
of the Fine Arts form is the automatic coverage for newly acquired items.
Coverage is provided subject to the following:
a. The automatic limit is 25% of the amount of
insurance that appears for scheduled fine arts.
b. Any newly acquired item has to eventually
be reported. This feature is particularly helpful since persons who schedule
coverage are likely to be collectors of higher-valued property. Insureds are
given time to remember to report their new property and, most importantly, have
their coverage adjusted. It is a condition that coverage ceases on a newly
acquired item if it is not reported within 90 days (or at the end of the policy
period if that arrives first). The named insured is also required to pay any necessary
additional premium for the new acquisitions as of the date they are secured.
Fine Arts Form
coverage is inapplicable to a number of situations. Ineligibility under this
class occurs according to who, effectively, owns or controls such property.
Specifically, disqualification extends to the following instances:
1. If it is contraband or is involved in any
form of illegal activity, it is disqualified as covered property.
2. Fine arts held by an art gallery, art
institution, auction house, art dealer or which is on public display in a room
or museum. Ineligibility applies when such property has existing coverage under
the applicable party having custody.
3. Fine art that is on exhibit at fairs or at
expositions (national or international). However, such property is still
eligible if the personal articles policy lists the location as a covered
location.
|
Example: Kenna Larderty has a camera policy covering $9,700 in equipment.
During the next month more than $5,000 of her equipment will be displayed at
her neighborhood’s library branch. She has already contacted her agent who
had the following information added to her policy: |
|||
|
1. Item of
equipment |
Serial No. |
Coverage Amount |
Premium |
|
2. Item of
equipment |
Serial No. |
Coverage Amount |
Premium |
|
3. Item of
equipment |
Serial No. |
Coverage Amount |
Premium |
|
4. Item of
equipment |
Serial No. |
Coverage Amount |
Premium |
|
5. Item of
equipment |
Serial No. |
Coverage Amount |
Premium |
|
The property is covered
for eligible sources of loss under the camera policy. |
|||
4. Fine art that is owned by and insured on
the behalf of government authorities (County, Federal, Municipal or State).
The ISO Fine Arts
Form protects against all forms of direct, physical loss. However, it does not
insure against loss or damage caused by:
1. Wear and tear, gradual deterioration, or
inherent vice
2. Insects or vermin
3. Repairs, service, or maintenance (such as
restoration or retouching).
4. Breakage that occurs to art glass windows, bric-a-brac, glassware, marble, porcelains, statuary and
similar articles.
An exception is
made to breakage loss when it is due to any of the following:
·
Fire or
lightning
·
Aircraft,
collision, or explosion
·
Earthquake,
flood, or windstorm
·
Malicious
damage or theft
·
Conveyance
derailment or overturn
This insurance is
subject to the policy deductible that appears on the declaration page.
The ISO Fine Arts
Form offers additional coverage as options that supplement its base coverage.
The following options are in effect if the policy declarations or some other
part of the policy material indicates that the options have been selected.
1. Breakage of Fragile
Articles Coverage for Fine Arts
When this option is selected, the breakage limitation does not apply to
described articles where a dagger mark is printed next to those articles.
2. Windstorm, Hurricane or
Tornado Exclusion
When this option applies, all items within the fine arts property class are stripped of protection against severe wind loss (windstorm, hurricane, or tornado). The exclusion applies to both direct and indirect severe wind loss and is unaffected by the location of the property.