Uncorking Peace of Mind: The Case for Wine Insurance

A true wine enthusiast understands the rewards of owning an expansive collection. The pride that goes into nurturing a bottle, anticipating its peak age and then enjoying its flavor can be gratifying.

You may want to consider purchasing wine insurance to protect your collection, especially if you store your collection in your own wine cellar. If you own a large, valuable array of wines, it is wise to insure your collection in a stand-alone valuable articles policy.

You can either insure the collection under a blanket amount, such as $50,000—or, if your collection contains individual high-value bottles, you may wish to insure each bottle separately. Generally, a stand-alone wine policy costs 50 to 80 cents for every hundred dollars of wine. Therefore, if you had a wine collection worth $100,000, your premium would be roughly $550.

Policy Inclusions

Wine insurance policies may include the following:

• Protection against damage due to fire, theft or accidental breakage
• Protection against mechanical breakdowns in the climate control unit that damages wine
• Protection against label damage in a fire, flood or other natural disaster (for many rare, vintage wines, the label increases the value of the wine)
• Access to vendors who ship, buy and sell wine; vendors who store wine in another location; vendors who offer security systems for your collection; and vendors offering temperature-control systems
• Guidance for how to best store your collection, especially when building or renovating your wine cellar

Storage Recommendations

If you house a collection in your home, consider the following recommendations to reduce damage to your wine:

• Do not store chemicals, paint or odor-producing materials near your collection. These items can permeate through the cork and spoil the wine.
• Do not store wine near heaters, sunlight, or areas susceptible to flooding, such as beneath a bathroom or laundry room. Also, avoid placing wine in areas of the home beneath or next to a home theater, which causes excess vibrations.
• Store wine at 55 degrees Fahrenheit. The humidity in wine storage should also be 65-75%. Anything above or below that amount can damage the label or cork.
• Install an alarm that warns against theft, temperature changes and moisture. When selecting an alarm, purchase one that sends a message directly to your mobile device.

Contact us today to learn more about protecting your valuables.

The above information does not constitute advice. Always contact your insurance broker or trusted advisor for insurance-related questions.