Agreeing with that philosophy, Lawless of Fireman's Fund, says, "A wealth or trust advisor needs to understand what is happening in the market, and that includes properly insuring clients' collections. You have a range of people who collect art. Some will be very knowledgeable about insurance and appraisers, but you can have someone who is just coming into the field and they will not have established relationships with the needed people."

The two main methods of insuring art works are blanket coverage for an entire collection or individual coverage for each piece. "If it is a smaller collection, you probably want blanket coverage with a maximum value for each piece. If it is a more expensive work, you want individual coverage with the value and claims process spelled out in the policy. Most companies write policies that provide up to 150% of market value," Lawless says.

The art experts agree that insurance coverage is relatively inexpensive because companies aggressively compete to write policies and few claims are filed. Coverage can be obtained for anywhere from 5 cents to 12 cents for $100 of coverage. So insuring a $100 million collection, which is not uncommon, can cost $50,000 to $75,000. Even for individuals who can afford such a valuable collection, insurance costs may still be a consideration and measures can be taken to lower the insurance premium and to help assure that filing a claim is never necessary.

"It is one thing to acquire a work of art. It is another to invest in its surroundings," says Christiane Fischer, CEO of AXA Art Insurance's U.S. operation in New York City. "Has the person considered proper environmental controls, the proper glass and frame, how and where a work is hung? Education of the public is something westress. Last year we did a newsletter alerting collectors to consider hurricane damage. Now we are focusing on warehousing, because there is a huge amount of art workin warehouses now. We found 60% of the warehouse operators do not do background checks on their employees. You also have to be careful when transporting artwork. One shipper we know had a couple of million dollars worth of art work on a truck driven by a person without a driver's license," she warns. "It is important to ask the right questions."

Insurance companies can make stipulations for specific circumstances, and each policy and situation canbe different.

"We did some surveying, and advisors seem to be familiar with the generalists, but many are not familiar with specialists for insuring high-end individuals," warns Dorit Straus, worldwide manager for fine arts at the Chubb Group of Insurance Companies based in Warren, N.J. "You need an insurance company that is experienced in fine art. I went to a potential client's home and saw a work on his wall that he had recently lent to a museum. He was pleased that I recognized it. It made him know his showing of the work was appreciated."

The unique nature of high-end art makes insurance an absolute necessity, in part because the works are liable to be moved frequently and exposed to many types of dangers or damages, like Straus' client. Avid collectors often want to share their beloved works with the public.

"I am always impressed by collectors' understanding of the legacy they have to protect," Straus adds."Art patrons are the most generous people in the world, and they welcome a chance to show works. So, they need someone who is always looking out for their interests.

"We had a client who lent works to a major retrospective in Washington, D.C., and the museum did not feel it was necessary to have a follow car for the truck when the pieces were transported. We felt it was important and we stipulated a follow car," she says. "In another instance, works were lent to an art museum overseas and they were vandalized. The next time, we stipulated there be barriers between the public and the art works, and we can require the museum to postguards. Sometimes we will recommend a piece not be lent because it is too fragile to travel. The collector's advisor needs to know he or she is dealing with an insurer who is from the art world and knows all the nitty-gritty details to think of."

In addition, "the advisor needs to understand the buying habits of the client and outline those habits to the insurance broker," advises Norman Newman, first vice president and head of the fine art and special risks division based in the New York office of Hub International, a leading North American insurance brokerage headquartered in Chicago. "If the client is an active collector, he may have collections in more than one location. If you have someone who buys 300 pieces a year, he may not get around to telling you about his latest purchase till eight months later. Ifa client is dealing with a foreign borrower, you want to make sure you canbring action in a United States court if necessary.