All of New York has felt the devastating impact of Hurricane Sandy—the art world is no exception. With the Fall auction season approaching, for example, major auction houses have been trying to refocus collectors’ attentions on the upcoming sales. Sotheby’s even postponed its first major sale of Impressionist and modern art to give potential bidders more time to get in and preview the offerings.

But perhaps the hardest hit area has been Chelsea, which over the years has become a center for the New York art world. Although it is difficult at this point to determine exactly how much art was damaged during the storm, what is clear is that nearly every gallery below 25th Street was impacted by the storm. At Nicole Klagsbrun on 24th Street, “artwork was literally floating around.” Among the hardest hit galleries was Zach Feuer, where floodwaters filled the gallery to a height of about five feet, destroying nearly all the artworks in the gallery’s current exhibition. Other Chelsea dealers fared better. While the Paul Kasmin Gallery experienced some flooding, all of the art had been moved to safety before the storm hit.

At this point, there is no final estimate of the total damage, including works destroyed, as gallery owners are in the process of cleaning up and assessing their inventories. AXA Insurance Company alone estimates its losses in Chelsea at $40 million. In addition to the physical damage suffered by many galleries is another undesirable consequence of the storm: increased insurance premiums. Dealer Lisa Schroeder noted via Twitter that many galleries do not insure art, though most have liability. Feuer agreed: “I’m sure premiums are going to go through the roof.” In any case, galleries, artists, and collectors alike are well advised to obtain sufficient coverage for their fine art.

But all is not lost, and with the help of the Museum of Modern Art, together with conservators from the American Institute for Conservation Collections Emergency Response Team, who are offered a presentation on saving flood-damaged artworks, galleries and artists—along with the rest of New York—have already begin the rebuilding effort.

AXA Insurance Company alone estimates its losses in Chelsea at $40 million. In addition to the physical damage suffered by many galleries is another undesirable consequence of the storm: increased insurance premiums. Dealer Lisa Schroeder noted via Twitter that many galleries do not insure art, though most have liability. Feuer agreed: “I’m sure premiums are going to go through the roof.” In any case, galleries, artists, and collectors alike are well advised to obtain sufficient coverage for their fine art. But all is not lost, and with the help of the Museum of Modern Art, together with conservators from the American Institute for Conservation Collections Emergency Response Team, who are offered a presentation on saving flood-damaged artworks, galleries and artists—along with the rest of New York—have already begun the rebuilding effort.