(March, 2015)

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.

ANALYSIS OF POLICY

Schedule

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

A. Property Covered

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.

B. Property Not Covered

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 eligible, 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.

4. Fine art that is owned by and insured on the behalf of government authorities (County, Federal, Municipal or State).

C. Perils Insured Against

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

D. Deductible

This insurance is subject to the policy deductible that appears on the declaration page.

E. Options

The ISO Fine Arts Form offers additional coverage as options that supplement its base coverage. The following options are in effect if the policy shows indication that they have been selected either in the declarations or elsewhere.

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.