Ken Kronstadt interviewed with Westlaw Today for the article, Q&A: What's covered for artwork destroyed by wildfires in LA? Below is an excerpt:
The January wildfires in the Los Angeles area could turn out to be the most expensive in U.S. history, with losses estimated to reach $35 billion — including the destruction of high-value artwork in homes and galleries.
Ken Kronstadt, a partner at Venable LLP, took questions from Westlaw Today about coverage for valuable art and artists' studios, and how policyholders may overcome obstacles in claims.
Westlaw Today: News reports have mentioned collections that were lost when private homes burned down, such as Ron Rivlin's collection of Andy Warhol paintings and Arnold Schoenberg's scores that were lost when his son's home in Pacific Palisades burned. Would that be covered by homeowners insurance or a specialized kind of policy?
Ken Kronstadt: Homeowners policies come in many sizes and configurations, so there is always potential coverage under those policies. A more standard homeowners policy might have a total limit for all artwork, plus a maximum per-item limit.
For example, a policy could cover up to $200,000 for artwork but have a $5,000 limit for any one work of art. However, homeowners policies are customizable, and a policyholder can add endorsements to cover specific works for art or entire collections.
Outside of homeowners policies, there is fine-art insurance coverage available specifically designed to cover prized works for art owned by individuals or families. Every policy is different, however, so a close review by an insurance expert could always reveal atypical pockets of, or gaps in, coverage.
For the full article, click here.