I advise a dealer who buys and sells about 50 paintings a year. He tried to schedule each one individually on a standard policy. It was an administrative nightmare, and he inevitably forgot to add a new $100,000 acquisition before it was stolen. He needed a “Blanket” or “Block” policy, but his broker never offered one.
Key Takeaways
- The “Blanket” Solution: Instead of listing every item, you insure the total value of the collection (e.g., $1M) with a “per item” limit (e.g., $100k).
- The “Unscheduled” Trap: If you buy a piece worth $200k but your per-item limit is $100k, you are underinsured the moment you buy it.
- Reporting Forms: You typically have to submit a quarterly report of values. If you miss a report, coverage may revert to the last reported amount.
- Transit is Key: Block policies for dealers must include transit, as the art is constantly moving.
The “Why” (The Trap): The Co-Insurance Clause
Block policies often have a 100% Co-Insurance Clause.
This means if your inventory is worth $2M but you only reported $1M to save premium, and you have a fire, they will pay only 50% of the claim. You cannot “under-report” on a block policy.
[IMAGE: Sample of a “Monthly Reporting Form” for a Fine Art Block Policy]
The Investigation: I Called Them
I compared options for a collector with high turnover (Buying/Selling quarterly).
1. Huntington T. Block (The Broker)
- The Product: Gallery/Dealer Block Policy.
- Pros: Seamless. You just track your inventory in a spreadsheet.
- Cons: Audits. They will audit your books to ensure you paid the right premium.
- Verdict: Professional grade.
2. Chubb (Valuable Articles)
- The Product: “Blanket” coverage for collections.
- Pros: Good for private collectors who buy often.
- The Limit: They usually cap the “blanket” portion. You still need to schedule the “super-items” (e.g., anything over $50k).
- Verdict: Best for stability.
3. General Business Owner’s Policy (BOP)
- The Product: Standard business insurance.
- The Trap: Usually has a tiny limit for “Fine Arts” ($2,500 or $10,000).
- Verdict: Useless for a collection.
Comparison Table
| Feature | Scheduled Policy | Blanket/Block Policy |
| Admin Work | High (Add/Delete each item) | Low (Periodic Reporting) |
| Coverage Basis | Agreed Value per item | Average Value / Purchase Price |
| New Acquisitions | Must report in 30-90 days | Automatic (up to limit) |
| Audit Risk | None | High |
Step-by-Step Action Plan
- Calculate Your “Max Item”: Determine the most expensive piece you might buy. Set your “Per Item Limit” at that number.
- Set Your “Catastrophe Limit”: Determine the maximum value in your house at one time. Set your “Aggregate Limit” there.
- Digital Inventory: Use ArtLogic or a similar 2026 database. You need to be able to print a “Stock List” instantly if a fire happens.
- Check the Territory: Does the block cover art at the framer’s? At the restorer’s? Ensure it is “Worldwide” or at least “Unspecified Locations.”
FAQ Section
Is a Block Policy cheaper?
Generally, yes. The rate per $100 is often lower than scheduled rates because they assume not everything is at max risk simultaneously.
What happens if I forget to add an item to the inventory?
If you have a Blanket policy, it’s covered automatically (up to the limit). If you have a Scheduled policy, it might be uncovered.
Can I mix jewelry and art on a block policy?
Usually, they are separate “classes” with different rates. Jewelry is higher risk (theft) than art.