Long-lost masterpiece almost selling for a song 

By Gail Bosch, Artinsure Product Head at iTOO Special Risks. 

Recent news that a long-lost painting by Italian master Caravaggio was on the verge of being sold for just €1 500 (R30 618) should serve as a sobering warning to art owners and collectors to ensure that they have their artworks evaluated by experts. 

The painting, which was rescued by art experts at the last minute from going under the hammer, has gone on display at Madrid’s Prado Museum after initially being put up for sale by its owner at a Madrid auction house. The true value of the masterpiece, identified as “Ecce Homo”, has been revealed to be upwards of €50 million (R1.02 billion). 

As incredible as this story is, it should be a stark warning to anyone who owns artworks to have these collectables evaluated by an expert. You never know what you could have in your possession, and you might be losing out on a fortune.  

While art collectors tend to generally be quite savvy when it comes to identifying artworks that could hold potential value, people who inherit or acquire art collections from relatives should consider having these works professionally evaluated. 

You might inherit or be gifted a painting that’s been hanging over your grandmother’s fireplace for decades and think nothing of it, but a trained eye could establish whether it is just a worthless print or indeed an original Pierneef or Picaso. That obviously changes things considerably. 

General Household Insurance not sufficient – And it’s not only about the resale value. People who decide to keep such works as collectables should know their true value and provenance so that they can insure them properly. Owners of collectables should not assume that these items would be sufficiently covered by general household content cover. 

General household insurance does not consider the peculiarities of collectable items that appreciate over time. Art and collectables may not always be covered through a homeowners insurance policy for their full value, resulting in these items being underinsured. 

Special risk insurers understand the value of art and collectables as much as collectors do, offering affordable, tailor-made insurance for such items. Together with specialist products and services, these insurers have access to an international network of independent evaluators, restorers, conservators and recovery agents. 

Certain artworks are simply not replaceable. I would urge collectors and owners of such items to become a little more conscientious about protecting what could be unique and priceless pieces. Specialist insurance is the instrument that is most effective for doing this because the loss of some of these collectables could well spell a loss of rare masterpieces for the art world. 

People who come into possession of artworks should have an up-to-date value of their assets because not all art or collectables appreciate at the same rate. Ideally, clients should regularly re-evaluate their collections to ensure their investment is insured at the right value. 

Typically, for contemporary works, it is recommended that a re-evaluation is done every year and for older works every two years. Older items’ value tends to be more stable, while contemporary items tend to fluctuate more regularly.