The global art market has rarely looked more vibrant. In 2025, high-net-worth individuals (HNWIs) are dedicating a greater portion of their portfolios to fine art, with the share of wealth tied to art collections climbing to an average of 20%, up from 15% in 2024, according to industry estimates by The Arts Basel and UBS.
But even as art collecting booms, fluctuating valuations and rising exposure to climate and catastrophe risks are forcing collectors and insurers alike to take a more disciplined approach to risk management.
“Collectors are more active than ever, but the landscape has changed,” said Blythe Hogan, vice president of arts & collections at Aon Private Risk Management. “Insurers are looking beyond the basics now, beyond just alarms and security systems. They want to know that collectors have actionable, written emergency plans that can be implemented immediately in a crisis.”
According to Hogan, the tightening of underwriting standards across the fine art insurance market reflects a broader evolution in how carriers assess preparedness and resiliency.
In catastrophe-prone areas such as Florida, California, and Colorado, she said, insurers increasingly expect detailed, written plans that outline who is responsible for protecting the collection, how works will be secured or relocated, and what resources are available if an event unfolds.
“In Florida, we see collectors using seasonal storage for their highest-value works during hurricane season,” Hogan noted. “With wildfires, the challenge is the unpredictability. Sometimes clients don’t have the luxury of time to prepare, so the plan needs to balance human safety with preservation of the collection.”
This push for greater specificity also extends to post-loss procedures. Carriers want assurance that collectors are equipped to document damage quickly, stabilize environmental conditions, and begin mitigation efforts before restoration specialists arrive.
Climate exposure remains a central underwriting consideration, particularly as art increasingly resides in regions facing frequent natural disasters. Hogan pointed to the secondary effects of wildfires, such as smoke and air toxicity, as key risks that collectors often overlook.
“Even if the home isn’t burned, poor air quality can still harm artworks,” she said. “We had cases this year where art needed to be relocated from homes that were perfectly intact but had sustained significant smoke exposure.”
Yet, despite growing concern about losses in California and South Florida, Hogan said insurers are not retreating from those markets entirely. Instead, they’re scrutinizing aggregations, i.e. the total value of insured assets concentrated in specific areas or even within shared storage facilities.
“Carriers want to understand how much exposure they have in one region or one storage site,” she said. “It’s about managing capacity, not withdrawing from the market.”
While underwriting standards evolve, many collectors still fall short on basic readiness. The most frequent blind spots Hogan encounters include outdated valuations, incomplete documentation, and emergency plans that exist only on paper.
Regular appraisals are now table stakes, she said, as values can fluctuate quickly depending on artist and market trends. If the valuations aren’t current, the client’s claim settlement won’t reflect the real worth of the collection.
Condition reports, too, are critical, especially when works are moved, loaned, or placed in storage. “We see disputes arise over when damage occurred,” Hogan said. “Having a condition report before movement eliminates that uncertainty.”
When collectors relocate art for safekeeping, they must also balance transit risk against stationary exposure. Hogan emphasized the importance of professional handling and documentation.
“Using vetted shippers, climate-controlled vehicles, and completing condition reports before every move can significantly reduce loss,” she said. “Sometimes moving a piece into storage is actually the best form of protection, provided it’s done correctly.”
Hogan noted that one of the biggest misconceptions among collectors is assuming that art is fully protected under a homeowners policy. “That’s rarely the case,” she said. “Valuable articles like art, jewelry, and collectibles should be insured under a separate valuable articles policy.”
Such policies typically have broader coverage, higher limits, and fewer exclusions than homeowners insurance. Brokers play a crucial role in guiding clients through the distinctions between scheduled coverage, where individual items are listed at agreed values, and blanket coverage, which protects groups of items up to a total limit.
“It’s our job to ask the right questions,” Hogan said. “Many clients don’t realize that gifts, new acquisitions, or smaller pieces may not be covered if they’re not scheduled. Discussing blanket options helps close those gaps.”
Even as art becomes a larger part of wealth portfolios, Hogan emphasized that collectors’ motivations remain deeply personal. That stewardship mindset aligns with the insurance industry’s evolving role: helping clients not just protect their assets, but preserve their legacy.
“Most collectors see themselves as custodians of history and culture,” she said. “Yes, art can be an investment, but for many, it’s about preservation. They want to safeguard these works for future generations.
“In the end, insurance is just one piece of the equation. What matters most is preparedness: having the right coverage, documentation, and plans in place so that, if the unexpected happens, they can recover quickly and continue building their collection with confidence.”
