For investment pieces kept in storage, ensure climate control. Canvases become slacker on tighter depending on temperature and humidity. Lay paintings off the floor and protectively wrap them.

2. Transportation

Clients may acquire artwork from a gallery, loan exhibit or another collector's home. “If the piece is highly valuable, but small and portable, the client may be tempted to transport the piece on his own,” said Steven Pincus, managing partner at DeWitt Stern in New York and director of the firm's fine art practice.

He recommends that collectors hire professional art handlers to transport pieces. Artworks should only be transported by professional fine art shippers in air-cushioned, temperature-controlled, fully secured and alarmed trucks. When art is crated for shipment, secure the services of specialized art handlers to pack up the works.

3. Appraisal

It is also crucial from an insured value standpoint to appraise art every 3 to 5 years, given fluctuating values. Collectors should recruit the services of an art conservation consultancy to periodically examine the work for damage, like chips or fading, which can often be corrected.

Also, ask your clients to photograph each piece and preserve all related documentation, including provenance and title, in a secure place such as a safe deposit box. They'll need this information for insurance purposes if the art is lost, stolen or damaged.

4. Coverage Options

In the event of a loss, art aficionados will want “The Scream” to reflect the Munch painting, not their frustration with inadequate insurance.

Surprisingly, some art collectors believe they have adequate coverage under their homeowners' policies. Instead, each piece should be itemized on the policy or insured under separate “blanket” coverage.

Write coverage on an “agreed value” basis, in which the owner and insurer consent to the value of a work of art or other collectible in the event of loss, theft or damage.

This also gives access to an insurer's value-added risk management services, such as infrared home scans to determine potential hot spots or cold spots, which could indicate potential electrical problems that could cause a fire or water leaks.

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ACE: Wealthy Families Have 'Blind Spot' When Protecting Jewelry, Art

High-net-worth individuals have too often neglected to manage and protect their treasures as carefully as they manage their financial investments or businesses, according to a white paper authored by ACE Private Risk Services and Trov.

“Breakthroughs in Managing Tangible Assets: Completing the Picture of Wealth” presents seven steps for addressing challenges related to tangible asset management. These issues include: determining value and authenticity, keeping proper documentation, maintaining adequate insurance, and optimizing estate and tax planning.

The study finds that nearly 50% of the homes owned by high-net-worth individuals did not have enough insurance to cover their contents, and the average amount of underinsurance exceeded $415,000 per home.

For more information, read “Many 'Priceless' Art Collections Go Underinsured” and “Market Influences in Appraising Fine Art” at propertycasualty360.com.