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2. PM
3. PM-00-17

What the form is

The ISO PM 00 17 Fine Arts Form is a personal inland marine insurance form designed to provide coverage for fine arts. It protects against direct physical loss or damage to items considered fine art, which are owned by the named insured. Coverage under this form applies globally. The form can cover fine arts on a scheduled basis, where individual items are specifically listed with their insured amounts, or on a blanket basis for unscheduled items, though unscheduled coverage often has a per-item limit (e.g., $500) and is typically settled at actual cash value. It can be written as a separate policy or sometimes endorsed onto a Homeowners policy.

Classes of business it applies to

This form is used for personal lines customers who own collections of fine arts. This includes individuals who collect paintings, antique furniture, sculptures, rare books, and other valuable artistic items. For example, a person who owns several valuable paintings, a collection of antique silver, and a rare manuscript would use this form to insure these items. It is particularly suited for collectors of higher-valued property. However, this form generally does not apply to fine arts in the custody of dealers, auction rooms, museums, art galleries, or art institutions if such property has existing coverage under the custodian's policy; these entities would typically require commercial coverage.

Special considerations

• Valuation: Proper valuation is crucial. For valuable fine arts, current appraisals are highly recommended to establish insurable values and avoid underinsurance, as the market for such items can fluctuate. Bills of sale and appraisals facilitate adjustments in the event of a loss.
• Newly Acquired Fine Art: The form often includes automatic coverage for newly acquired fine arts, typically for a percentage of the total scheduled fine arts coverage (e.g., 25%). This coverage is temporary (e.g., for 90 days or until the policy period ends, whichever is first), and the new items must be reported to the insurer and an additional premium paid to continue coverage.
• Movement of Property: If covered items are moved, they must be properly packed and unpacked by competent personnel. Losses occurring during transit or at unlisted locations might be denied if these conditions are not met.
• Breakage: Coverage for breakage of fragile items like glassware, marble, porcelains, and statuary may be limited or excluded unless caused by specified perils (e.g., fire, lightning). However, breakage coverage can sometimes be added as an option for specifically described articles.
• Exclusions: Common exclusions include loss or damage from contraband or illegal activities, wear and tear, and property on exhibit at fairs or expositions (unless the location is specifically listed).

Key information for agents and underwriters

• Risk Assessment: Underwriters should emphasize the need for detailed schedules and current appraisals for high-value items. The insured's collection habits, security measures at their premises, and any transit exposures should be carefully evaluated.
• Coverage Gaps: Agents should explain the limitations of standard Homeowners policies regarding fine arts, which typically offer very limited coverage. The difference between scheduled and unscheduled coverage, per-item limits for unscheduled property, and any breakage limitations should be clearly communicated.
• Scheduling and Settlement: Encourage clients to schedule valuable items to ensure they are covered for their appraised value, potentially using an agreed value loss settlement form (like PM 00 10) in conjunction with this form. The PM 00 17 form itself has provisions for listing items and indicating settlement options.
• Related Forms: This form is typically used with the Personal Lines Inland Marine Common Policy Provisions form (e.g., PM 00 01). Depending on the desired loss settlement, it might be accompanied by the Personal Articles Standard Loss Settlement Form (PM 00 09) or the Personal Articles Agreed Value Loss Settlement Form (PM 00 10).