A lot of people don't see the value in buying insurance to cover fine art. While they realize that the artwork is very valuable they often argue that since it can't be replaced it isn't worth insuring it. Others don't want to pay the cost of the insurance and decide that the risk of going without it is worthwhile. This is rarely a good idea, nobody knows the risks better than the insurance company and they set the premiums accordingly, if your premiums are high it is because the risk is high. As for being unable to replace the artwork, while this is true it doesn't mean you shouldn't be compensated if something does happen to a piece of art.
The reason why you would insure fine art is because it is a major investment and it does tend to be prone to theft and damage. There is a school of thought that since fine art is often irreplaceable it is not worth the cost of insuring it. This is almost always a mistake, if your art is ever stolen or damaged you are much better off receiving an insurance settlement than you are getting nothing. One other reason that you should insure your art that is often overlooked is that the art insurance companies are actually quite good a recovering stolen artwork. They actually have their own agency for tracking down stolen artwork, if they have to pay a claim they will use this agency to find the stolen piece. They are actually quite good at it.
So who needs art insurance? The obvious would be museums, galleries and large corporations that have a lot of valuable artwork on display. Others would include companies that transport or store artwork. One group that should have art insurance but frequently doesn't is the artists themselves. Creating a piece of art is a major investment of time and if it should be damaged or stolen you will want to be compensated for it. This is especially true if you are displaying your work in places like cafes since they rarely have coverage for artwork on their insurance policy. In most cases art that you have in your home can be covered on your homeowners policy but this is something you are going to have to check.
A lot of people tend to avoid getting the insurance they need to cover their artwork because they are afraid of the cost. While it is true that art insurance can be expensive it is also true that it is usually money well spent. The cost of a piece of art can run into the millions of dollars, it would be unfortunate if you had to pay that out of your own pocket. Many galleries and museums in particular can't afford enough insurance to cover their entire collection, but it is still worthwhile to buy as much insurance coverage as you can afford. If you ever need it you will be thankful.