What percentage of new property can be included in commercial fine art coverage?

In commercial fine art coverage, it is standard for policies to allow policyholders to include a percentage of newly acquired property without needing to adjust their coverage limits or provide prior notice to the insurance company. The typical allowance for new acquisitions is 25%. This provision is particularly beneficial for galleries, collectors, and institutions that may frequently acquire new pieces, ensuring they are protected as soon as those items are added to their collections.

This percentage serves to strike a balance between providing adequate coverage for newly acquired fine art while also managing the insurer's risk. If the limit were substantially higher, it could expose the insurer to increased risk without sufficient underwriting information. Meanwhile, lower percentages may not sufficiently support policyholders in case of sudden valuable acquisitions. Thus, the industry standard of 25% is both practical and reasonable for the protection of commercial fine art.