Art insurers are expecting a 100 percent profit loss — about $500 million — this year, thanks to Hurricane Sandy’s devastation of New York’s waterfront galleries and studio spaces. AXA told the New York Times that it expected to pay about $40 million, while London broker R.K. Harrison estimated the overall industry total to fall in the $400 million to $500 million range.
Meanwhile, Reuters reports that damage to works in psychedelic artist Peter Max’s storage unit could cost upwards of $300 million alone.
The hefty bills mean a likely uptick in insurance rates in the new year. The executive director of R.K. Harrison said he expected a 5-10 percent increase in the months to come.
— Rachel Corbett
This article also appears on Market Watch, ARTINFO’s market news blog.
(Photo by Katya Valevich.)