Number 8 Insurance for Map CollectiosCompiled by Hans Kok
A. Introduction
Obtaining adequate insurance coverage at acceptable price is a multi-faceted problem, which may differ for small private collections as opposed to large institutional collections. This bulletin applies mainly to the private collector in his search for adequate coverage from normal 'household' risks.
Damage may result from thrid parties, executing a service on request of the owner, e.g. framing or restoring a map using incorrect mounts, glues, cleaning agents, etc. Damage may also result from the simple fact of possessing a collection of goods, e.g. theft, fire, water, etc. Several forms of insurance are available.
Iwould like to emphasize the basic difference between 'intent', 'gross-negligence' (containing an 'element of intent') and 'negligence'. In general, intentional damage is not insurable, gross-negligence may or may not be insured under a policy, 'normal' negligence is covered, up to a stipulated maximum amount.
An important point is the fact that slow processes are normally excluded from insurance coverage: the effects of too high humidity, too much light, acid mounting-boards, etc. The insurance claim requires a sudden onset of the damaging process. Top
B. Third-party liability
A collector may cause damage to the property of a third party and become liable for the amount of damages. Your third party liability insurance will foot the bill as long as the occurrence is insured under the policy and only up to the maximum amount of the policy. Damages in excess of the maximum covered have to be payed by the perpetrator.
(Example: You cause a tear in somebody else's map, spill coffee over it, or 'lose' it)
Remember that damage caused on purpose makes you liable, but is not covered by your insurance; damage caused through gross-negligence makes you liable but your insurance may or may not pay for it.
You may vice versa find yourself the victim of damage and want to claim it. These claims should be addressed to the perpetrator, who will pass on the claim to his liability insurance, provided he carries this type of insurance. Most regular businesses like framing shops, restoration enterprises and transportation companies carry (adequate?) third party liability insurance; private persons often do not.
Where (inter-)national laws restrict maximum liability (as in aviation for instance), intent and gross-negligence will suffice to remove the restrictions and cause unlimited liability to be applicable. Shippers and forwarding companies are notoriously infamous for their very limited compensation in case of loss/damage. Damages in excess of the insured sum may have to be claimed in court; this may involve heavy legal costs and implies the burden of adequate proof. 'Emotional' damage may be much higher than the financial damage but is normally not enforceable. An insurance policy covering new items procured for the collection from the moment of purchase, regardless of location and covering the risks during transportation may therefore be very worthwhile. Top
C. Damage to your own collection
For potential damage in this case, two solutions - in terms of insurance - are available: through the regular household goods insurance, and by taking out a special art insurance policy.
For larger and more precious collections a tailor-made insurance policy should be arranged, contacting directly a reputable company experienced in the field. A flexible firm will offer a trade-off possibility for premium against security enhancement such as quality locks, alarm system and smoke detectors. They will also assist in such matters like damage prevention, packaging, transportation and (re-)valuation of the collection. In case of damage they will have or contact specialists on damage, restoration cost and residual value as required.
A basic distinction between the Fine Art insurance and the amplified household goods insurance lies in the principle of All Risks (every risk with named exclusions) and the insurance against 'named perils' with yes/no accidental damage coverage included.
The beginner-collector is adequately covered through his household goods insurance under a standard policy. Where single items are very valuable, a special clause for just these items should be added to the standard policy. He should realize, however, that depending on the growth of his collection-to-be certain elements in his policy are missing until his collection warrants the special arts insurance discussed above.
A growing collection requires adaptation of the insurance coverage without too much phase-lag to prevent under-insurance. Under-insurance will also result when the collection does not grow in numbers but when its items appreciate in value.
A tentative upgrade may be as follows:
- an extended household goods policy (total value of household goods plus value of the collection) without special coverage, insuring the collection at household rates against household risks.
- an extended household goods policy with special coverage for precious items like art, maps, atlases and globes (split rates may apply).
- an art insurance policy without special building requirements in addition to a regular household goods policy (standard art insurance rate will apply).
- an art insurance policy requiring air conditioning, special locking equipment, alarms of various levels and fire alerting and suppressing capability (modified negotiable rates will apply).
When the policy contains an index-clause, remember that building or general content indices may be very different from art/map indices. Also, realize that purchase price (foreign currency!), current value, value after depreciation (sometimes applicable where businesses buy into maps as into business-related items) and residual value after damage are all different considerations. Top
D. Items on loan to/from Museums, etc
Where maps, etc. are made available on loan-basis, a thorough check whether the different insurance policies match and mesh is required. Consider the following: transportation, framing and de-framing, the framing shop, store-rooms before and after the exposition, packaging, etc. In this respect the 'nail to nail' principle is important, that means from the moment the map leaves the nail until it is back on its nail, whereby is has to be from 'your nail' until 'your nail' and not from 'their nail' until 'their nail'.
It is good practice to ask a museum receiving your maps, etc. on loan, to include a copy of their insurance policy with the loan agreement. Top
E. Points to check
A number of clauses will differ from country to country, from insurance company to insurance company, but definitely between household goods insurance and dedicated art insurance. The following risks should be assessed:
- falling off the wall, glass breakage and consequential damage
- bursting water pipes, storm, open windows
- pets, vermin, fungus
- restoration after damage, residual value
- depreciation
- temporary ownership, part-ownership
- location at the time of damage
- payments for expertise in case of damage
- single damage/multiple maps as a set, versus reduction in value of the whole set
- overlapping insurance policies
- exclusions
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F. Applicable rates
Rates quoted will depend on:
- size of the collection
- nature of the collection
- uniformity of the collection
- building construction/area
- security measures
As a general reference, one may assume that standard household goods insurance rates will be increased by about 25% for a Fine Art collection of a non-fragile nature. Rates for 'fragile' and, e.g. Silver, will be even higher. On the other hand, rates may be cheaper than standard household rates in the case of a collection of items that are difficult to steal, sell or damage.
A collection of glass items for which an 'easy' market exists will be more expensive to insure because of its fragility and re-sale potential. An expensive statue in the front garden may not be fragile or easily saleable, but the day and night access to the garden will affect quoted rates. For a map collection only, the risk is considered less than average, as stowage in drawers, etc. is considered reasonable protection and the resale of the maps is (statistically) neither common nor easy. It may therefore be preferable to seperate the map collection (insurance-wise) from the insurance of other items. Many a map collector will have other fine art pieces in his home in addition to maps.
Also, the map collection may be spread over more than one home under the same insurance policy. It may then be advisable to select as 'collection home-base', the house which statistically lies in the safer area, where lower rates apply. It is important to report split-location to the insurance company and check out the effect on premium if any.
A collection where all items are of comparable value is cheaper to insure than a collection of the same total value where a few items are markedly more valuable than the rest, as these items are more likely to be selected in case of theft. Top
G. Information
Most insurance companies have internet sites available for information/contact, e.g. Hiscox at www.hiscox.com . Hiscox (a sponsor of the IMCos Symposium at Amsterdam in 2002) operates branch offices at Amsterdam, Brussels, Paris and Munich, whilst the Main Office is located in London.
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