Insight

How does the death of an artist affect the value of their work?

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The conventional wisdom is that when an artist dies, prices are likely to spike. Art experts are often at odds over whether this phenomenon is real. 


It is rare in modern times for artists to be completely unappreciated during their lifetime and suddenly find fame (and fortune) after death, which was often the case in the past.

Vincent van Gogh, for instance, received little recognition during his lifetime, with his paintings described as being too dark and lacking life. He produced 900 paintings in all but only ever sold one. Yet long after his death, his Portrait of Dr. Gachet sold for a record $82.5m in 1990.    

The story is similar for other famous artists such as Paul Gauguin, El Greco and Henri de Toulouse-Lautrec.

A spokesperson for Artbusiness.com said: “The prevailing notion in many parts of artland is that art prices automatically go up when an artist dies, as if death trips some kind of magical instant inflation switch. Plenty of art buyers as well as artists believe in this posthumous profit scenario.” 

In reality, the value of art after death depends on a wide range of factors, from the level of fame of the artist to the quality of the art and current market preferences.

These factors can be affected by the death of an artist, under specific circumstances. Such as when the artist is particularly famous, their artwork is in demand or they die prematurely, catching the market off guard.

Reasons a painting may gain in value after the death of an artist: 
  • Increased publicity creates a buying frenzy.
  • A public perception that the value will rise creates a spike.
  • Demand rises because collectors know the production line has finished.
  • The artist gains new appreciation in the market after his or her death (the record sale for American painter Cy Twombly before he died in 2011 was $8.7 million – it rose to $70.5 million after.)
Why a painting may drop in value after the death of an artist: 
  • Living artists have the potential to improve and produce works in future which increase their reputation, together with the value of all their work. Once they have died this is no longer true and they become less collectable.
  • Living artists are often their best sales person, promoting their art. In some cases when they are no longer alive the art disappears from public view.
  • Often collectors rush to sell art when the artist dies, flooding the market. This can result in lower prices at auction.


While many art collectors believe the phenomena to be real, ArtBusiness is sceptical. It claims that for the “majority of artists, death has little, if any, impact on the trajectory of selling prices, market desirability or "investment potential." 

However, insurance companies have plenty of options for art collectors who want to protect against the risks of artists dying. These can include both rises in value and crucially, recouping costs of unfinished commissions. It is certainly worth considering insuring against the artist’s death for anyone paying significant sums when commissioning bespoke works. 


Specific insurance terms from selected providers
 
InsurerTerms around Death of Artist
Axa Art

If the market value of any item insured on an agreed value basis increases as a result of the death of the artist during the period of insurance, we will pay up to 200% of the agreed value of that item in the event of a valid claim up to the maximum shown in the table of limits.

You must provide us with an independent professional valuation report or a purchase receipt which is not more than 3 years old and you must prove the increased market value of that item.


We will also reimburse all irrecoverable costs or expenses you have paid on works of art commissioned by you but not completed due to the death or permanent disability of the artist. The most we will pay for any irrecoverable costs or expenses is the amount shown in the table of limits.

Hiscox

We will increase the insured value of any item listed in the specification for fine art by up to 100% if the artist dies during the period of insurance. We will only do this for the six months immediately following the death of that artist and provided you can produce an independent professional valuation or a purchase receipt which is not more than three years old at the time of any loss or damage. You must be able to prove the increased value if you make a claim for that item.

We will also reimburse you for any costs or expenses you have paid but are unable to recover on works of fine art commissioned by you which remain incomplete at the time of the artist’s death. We will only do this if the artist dies during the period of insurance and you are legally entitled to a refund of such costs or expenses.

The most we will pay for any increase in value or irretrievable costs or expenses is £100,000 in total during the period of insurance. If you are unable to provide evidence of the costs or expenses that are legally due to you or a professional valuation or purchase receipt and proof of increased value then this extension will not apply.

 

Chubb – Signature

£100,000 - restricted to prior to completion of works.

We cover uncompleted works of Fine arts or items of Jewellery by an artist commissioned by You that are damaged or destroyed by a covered peril under this Policy prior to completion or which cannot be completed by the artist due to the artist’s death.

We will pay for the costs You incurred for the materials or supplies for the artist and the contracted costs for labour up to £100,000 but no more than the amount of non-recoverable deposits or the full commission price if prepaid. This is the most We will pay regardless of the number of policies providing You with coverage for Fine arts or Jewellery.

ZPCFollowing a covered loss to an item of fine art and antiques specified on your schedule, we will pay up to 200% of the sum insured for that item shown on your schedule if its value has increased due to the death of the artist during the current period of insurance.
Eccles

The most we will pay is an additional 50% of the value shown for each individual item and in no case will we pay more than an additional £500,000 in total for any one claim. This includes increases to the value of art following the death of the artist during the period of insurance providing that you can prove the increase in value with an independent professional valuation.

For personal valuables the most we will pay is an additional 50% of the value shown for each individual item and in no case will we pay more than an additional £100,000 in total for any one claim.

XL Catlin

£100,000 - restricted to prior to completion of works.

We will cover the cost of material and contracted labour that you incur if you have commissioned items of fine art but they cannot be completed because:

• the artist has died during the period of insurance, or

• there is loss to the work you have commissioned during the period of insurance.

We will pay up to £100,000 in total for all claims in the period of insurance but we will not pay more than you are legally liable to pay and cannot recover.

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