What the Basquiat Forgeries Teach About Art Insurance for Homeowners

The $19.7 million legal battle involving Liberty Mutual, Great American Insurance, and forged Jean-Michel Basquiat artworks reveals critical lessons for homeowners who own valuable art or collectibles. This high-profile case began with the FBI’s 2022 seizure of 25 fake Basquiat pieces from the Orlando Museum of Art, sparking disputes over insurance coverage. The insurers argue that forgeries lack insurable value without proper appraisals and documentation, leaving gaps in policy coverage.

For homeowners, the key takeaway is that standard insurance policies often don’t cover high-value items like art, jewelry, or antiques unless explicitly scheduled with supporting documentation. Professional appraisals, regular updates on valuations, and personal articles policies are essential steps to ensure coverage for valuable possessions. The Basquiat case highlights the financial risks of neglecting these measures, with insurers refusing to cover items without proven authenticity or value.

Whether you own a single inherited painting or a growing art collection, understanding the importance of appraisals, proper documentation, and specialized insurance is crucial. Just as the museum faces challenges recovering funds, homeowners without adequate coverage may be unprotected if their valuables are damaged, lost, or stolen. Taking proactive steps can prevent unexpected financial losses and ensure peace of mind.