Whoever coined the phrase, no sense in crying over spilled milk obviously never lost a prized bottle or bottles of wine from a collection.
Wine collectors who learned the hard way, have shed some tears and paid dearly, after the loss of prized vintages due to water damage, climate control issues, breakage, and other similar scenarios.
Gaps in Homeowners’ Coverage
The biggest mistake wine collectors make is not adequately protecting their investment with the right insurance coverage. Surprisingly, most homeowners’ insurance policies do not address the unique exposures you may face as a wine collector.
Your homeowner’s insurance may cover instances of theft, fire, and, in certain cases, breakage of a bottle. However, the policy will not cover any loss created by:
- Flood exposure.
- Mechanical breakdowns.
- Temperature extremes.
- Shipping conditions.
Imagine returning home after a vacation to a broken cooling system in your wine cellar which started pumping out warm air. Your wine collection would most likely be spoiled with corks popping out of the bottles and wine all over the floor. Your prized vintages are now undrinkable and unsellable, and without coverage, a significant financial burden to replace.
The Right Coverage
If you have a wide variety of valuable wines, you should consider a stand-alone valuable articles policy. You can secure coverage under a blanket amount or, in the case where your collection has high-value bottles, you may opt to insure each bottle separately.
In most cases, a stand-alone wine policy costs 50 to 80 cents for every hundred dollars of wine; a small investment considering the potential financial devastation in the case of a loss.
Common Policy Inclusions
Your wine insurance policy may include additional protections for your collection including:
- Damages due to fire, theft, or accidental breakage.
- Mechanical breakdowns in the climate control unit that causes damage to the wine.
- Label damage in instances of a fire, flood, or other natural disaster. If you have rare, vintage wines, the condition of the bottle’s label contributes significantly to its value.
- Access to vendors who ship, buy, and sell wine as well as those who offer security systems and temperature-control systems.
- Guidance for how to best store your collection, especially when building or renovating your wine cellar.
The risk advisors at Taggart Insurance can help determine your specific coverage needs when it comes to wine collection insurance. We will help you take an inventory of your collection to ensure you are protected according to current market value. Based on your storage situation and plans for your wine collection, we will identify exposures and provide tips to protect your investment.
Armed with the right insurance coverage and help from Taggart Insurance, you will prevent making avoidable mistakes. After all, you can’t put spilled wine back in the bottle.