Is Your Collection Insured?
A common question from our customers is "under what circumstances is my wine covered by insurance?" The December 2005 fire at the Wine Central Warehouse facility in Vallejo was one event that caused people to think about this topic. It's estimated that $100 million in wine from private collections and wineries was destroyed in that event. Whitehall Lane, Saintsbury Viader, Signorello, Frazier and Justin were among the wineries that suffered losses in the blaze. Several of the wineries and private collections were under-insured or not insured at all.
As a buyer of fine wine, you know that proper storage conditions are critical. However, there are many unexpected hazards - damage by fire or water, breakage, sudden spoilage, cellar malfunctions - that can put your collection at substantial risk. Fortunately, many of these threats can be easily addressed through insurance, enabling you to safeguard your collection.
To guarantee peace of mind, you can insure your collection by adding a wine schedule to your personal Homeowners insurance policy, as wine can be scheduled in the same manner as jewelry or fine art. To start, make an inventory of your holdings. Next, talk to your insurance agent about the different types of policies available. With a "scheduled" policy, insurers allow you to insure each bottle in your collection. With a "blanket" policy, you can simply provide blanket limits that give you an outside amount and a per bottle maximum. Often, big collectors use both policies to cover differing values of wine.
Our goal at K&L is to always make your wine experience a fabulous one, both inside and outside the stores. For more information on coverage availability, contact your personal insurance agent, or speak with one of our recommended experts for more information: