(March, 2018)
Coverage under the
ISO Fine Arts Form is a type of inland marine coverage. It covers objects of
fine arts against direct damage. Besides separate coverage, protection may be
written as an endorsement to a Homeowners policy.
Inland marine coverage can be purchased using this form or combined with other types of items under a personal articles floater.
Related Articles:
ISO PM 00 09–Personal Articles Standard Loss Settlement Form
Fine Arts Additional Considerations
Hobbies–Hazards and Opportunities.
The schedule has
space 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 items and to
indicate whether breakage coverage applies 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 property class applies to the following
private, as opposed to commercially-oriented:
(1) Drawings (refers as well to etchings,
lithographs, paintings, pictures or tapestries)
(2) Windows made of art glass
(3) Legitimate art work (includes, but not
limited to antique furniture/silver, bric-a-brac, porcelains, rare books
[including manuscripts], rare glass, rugs, and statues [bronze or marble].
(4) Other property that qualifies under this
class is other rare items that have measurable artistic merit or historical
value.
2. Newly Acquired Fine Art
An important
coverage 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. The newly acquired property feature is
particularly helpful since persons who schedule coverage are likely to be
persons who collect higher-valued property. This coverage feature allows such
persons reasonable 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.