Climate Change's Impact on Insuring Art

Summary of the Article

Collectors living in catastrophe-prone areas are finding that the insurance coverage they rely on to protect their fine art is becoming increasingly difficult to obtain (or renew) and, for those who can get it, it’s more expensive. In order to continue writing business in states that are most at risk, some insurers are restricting coverage by adding deductibles for the first time or excluding certain weather events to better balance their exposure.

The problem fine art insurers face, says Claire Marmion, SVP, Fine Art, PURE Art Services, is that the “concentration of valuable collections corresponds to the places that are most prone to catastrophic events,” such as Florida, California (particularly Los Angeles) and the tri-state area of Connecticut, New Jersey and New York. “Managing risk” has become the fine art insurance industry’s catchphrase.