Wine Insurance Policies and Storage Recommendations

A true wine connoisseur recognizes the benefits of having a large collection. The pride that goes into nurturing a bottle, anticipating its peak age and then enjoying its flavor can be gratifying.

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 damages 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

Is your collection stored in multiple locations? If the answer is yes, you will need to purchase coverage for each location. If one of those locations is a professional storage warehouse, the warehouse may already have wine insurance. It is wise to go over their policy to ensure it protects against the risk of fire, flood, power outage and more.

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 or sunlight, or in areas that are susceptible to flooding, such as beneath a bathroom or laundry room. Also avoid placing wine in areas of the home that are beneath or next to a home theater which causes excess vibrations.
• Store wine at 55º F. The humidity in a wine storage should also be 65 to 75 percent. 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.

Consider obtaining wine insurance to protect your collection, especially if you store it in your own wine cellar. INSURICA is here to help you secure the best wine coverage options.

This document is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. © 2009-2011, 2014 Zywave, Inc.