Hardly a day passes without reports of another shattered climate record. As Earth’s climate changes, heat waves, floods, droughts, wildfires, and hurricanes are all becoming more frequent and more intense, according to the National Oceanic and Atmospheric Administration (NOAA). And art is uniquely vulnerable to extreme weather events.
While art is an aesthetic, valuable investment — half of high-net-worth individuals have at least 10% of their portfolio in art — it is also subject to risks that other asset classes are not. Art must be kept in precise conditions to maintain value. Heat and humidity can threaten its integrity. And if a weather emergency occurs, such as a hurricane, owners may not have enough time to transport fragile pieces from the epicenter of danger. Compounding the problem, some of the most valuable art is concentrated in areas that are regularly classified as high-risk by insurers, including New York, Los Angeles and Miami.
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