What Is Wine Insurance?

You don’t need me to tell you that we live in uncertain times. I’m not even talking about the political situation in Ukraine or the effects of Covid on the financial market; I’m talking about uncertain climatic times. Summer 2022 was one of the hottest on record by a substantial margin, there are more floods, hurricanes and natural disasters than ever before and quite frankly, I’m exhausted at never knowing if I need to take an umbrella, sun cream or snow shoes out with me when I want to go to the park on a Sunday afternoon.

Flippancy aside, my point being is that you can no longer rely on the standard cold winter/warm spring/hot summer/cool autumn climate, as we might have done in the past. Today climatic changes are so vast and varied if you’re not controlling the temperature, you’re out of control.

If you have a wine collection – and let’s assume you do if you’re reading this – then it is fundamental that you store and insure your wine correctly against the temperaments of the weather. Buying wine through one-stop wine investing apps such as Vindome.net offer fast and painless solutions to buying, storing and, most importantly, insuring your wine. Because you never know when the meteor is going to strike, right?

Should I insure my wine?

As wine investment pros, this is one of our most frequently asked questions. And the answer is yes, absolutely.  After all, fine art, jewellery, antiques, cars and homes all enjoy tailored insurance policies hedging a wide variety of risks, so why would your sense of precaution stop as soon as you get to the cellar. However, less than 5% of wine collections are insured, making the liquid gold almost worthless when and if the time comes to resell. 

What does wine insurance cover?

As a professional investment company, we would always advise keeping your wine in a professional storage facility in order to ensure optimal conditions for resale. Potential Vindome investors should note that all wines that are bought and remain under our umbrella are stored in our approved warehouse, J.F. Hillebrand, a well-renowned storage and transportation company in Europe for fine wine. Hillebrand is our ideal choice – not only are their warehouses strategically located close to the estates – thereby limiting the danger of potentially hazardous transport, but their warehouses offer constant ideal temperatures and humidity. Not only is your wine fully insured at market value but we report the market value to the warehouse on a monthly basis, and the policy is adjusted accordingly. This means that if you buy your prized Petrus at x and it goes up by y over the years, then, should disaster strike and your bottle is lost for some reason (see a list of potential problematics below), you’ll be reimbursed at the current market rate. Simples, right? 

However, if the plan is to keep your wine in your temperature-controlled cellar at home, then extra insurance – not just home insurance – is a must. Think about the following when considering what to look for in a policy: 

  • Theft or burglary.
  • Damage caused by a fire or flood.
  • Lost or misplaced bottles.
  • Accidental breakage. This could include damage that happens when the wine is being transported from one place to another, such as from a winery to your home.
  • Damage caused by a mechanical breakdown or power outage affecting a climate-controlled wine storage unit.
  • Damage caused by a sewer or drain backup.
  • Damage to a bottle’s label caused by a fire, flood or other natural disasters. (Fine wine’s value is often dictated as much by the label as the contents). 
  • Damage caused by a natural disaster ie earthquake or hurricane. 
  • Humidity and temperature changes

How much does wine insurance cost?

The cost of wine insurance is determined by several factors and, in some cases, can be on a case-by-case basis, pun intended. The general rule of thumb is that insurance costs between 0.4 and 0.8% of your collection, although, for more valuable wine collections, we recommend you investigate speciality wine insurance. You can purchase bottle-by-bottle coverage or blanket coverage. Insurance professionals recommend bottle-by-bottle wine coverage for higher-value wine and blanket wine coverage for lower-value wine. The location of your wine collection might up the premium a bit – for example if you’re located on the edge of a seismic fault or in the middle of the Amazon jungle. 

Regarding purchasing insurance with Vindome.net, we are completely transparent in our cost breakdown. The insurance fee is 0.04% per month of the value of the wine stored with a minimum of Euro 0.10 per case per month. Moreover, when you purchase fine wine, the insurance fee is charged in advance for the days remaining in the quarter from the date of purchase. So should anything happen post-purchase, rest assured, you’re always insured. 

Learn more on how to invest in wine with our wine investment tips

What are the benefits of getting wine insurance?

  1. Flexibility (for a single bottle or an entire collection)
  2. 0% loss on your investment
  3. Great value for money

What are the wine insurance options?

When storing wine at home

Even if you don’t have a bottle of Chateau Lafite 1869 or Cheval Blanc 1947 but have integrated a wine cellar into your home, chances are you have some reasonably valuable vino that you want protecting.

Storing wine yourself is one of the biggest risks when investing in wine, and we would always recommend storing your wine with our (or a) professional storage facility to ensure no loss of value. If however, you do choose to store your wine at home then make sure you buy specific insurance for your wine and don’t just assume that you’ll be covered under your household insurance. 

Tips on storing your wine

There are all sorts of things that need to be considered when storing wine at home. Because fine wine, like fine women, is fickle. These are bottles that are worth more than a car, so you want to make sure that you’re getting the best, right? I mean, you wouldn’t park your Bugatti Verone on the street, would you? No, of course not. Well, storing wine at home is the same thing. 

Here’s our list of factors to consider

  1. Cool Temperature Is Key
  2. Always Check the Humidity
  3. Turn the Lights Off
  4. Always Place the Bottles Horizontal
  5. Keep It Steady
  6. Serve Wine at The Right Temperature
  7. Beware After Opening

Learn more on how to store wine at home here.

Enjoy hassle-free wine storage & insurance with Vindome.net. Download the app today!

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