Acquiring a fine wine collection requires more than a roomy cellar and a sizeable financial investment. As your collection grows, so does the urgent need to protect it thoroughly and efficiently. A glass of your Kistler Vineyard Chardonnay will taste even sweeter when you sip it with the peace of mind that your fine wine insurance policy offers airtight coverage. The following are six types of coverage you must include in your policy to ensure that your treasured collection does not dissolve into a pool of regret.
Broad Customizable Coverage
As a fine wine collector, you are likely familiar with the ever-changing pace and circumstances that complement your responsibilities. Bottles with varying price tags are acquired and depleted, causing your fine wine collection to fluctuate. The business of it all can become unpredictable, so including broad customizable coverage within your policy is a smart move. Shedding it of its many technicalities, broad customizable coverage ensures that you can include a wide range of options in your policy. From unforeseen disasters to burglary and theft, such coverage offers you maximum flexibility on what is to be implemented and when. Specifics vary from one insurance provider to the next, but with this option, you are paying for the protection that will minimize your risk and give you greater peace of mind.
Mechanical Breakdown Coverage
From your high-tech cooling unit to your humidity controller, each piece of equipment in your cellar is paramount to the quality of your fine wine collection. Should one of these units malfunction, all of your bottles face peril, and your investment – both in the equipment and in the wine – is in jeopardy. A thorough fine wine insurance policy will cover mechanical breakdown. This is not a standard type of coverage, but a true essential, according to Wine Spectator. Furthermore, some providers may offer partial mechanical breakdown coverage, in case of a fire, for instance. In order to protect your collection from all sides, invest in a policy that includes equipment malfunction as well as unforeseen disasters in its mechanical breakdown coverage.
Spoilage coverage goes hand in hand with mechanical breakdown, though it is often not presented as such by most fine wine insurance providers. Your fruitful collection will lose one or several bottles due to spoilage during its existence – this is inevitable in cases of overlooked maintenance issues or equipment malfunction. If the ruined bottle is a ten-thousand-dollar Bordeaux, your loss is suddenly a huge one. Spoilage coverage allows for your fine wine policy to recover the spoiled bottles’ worth. Without it, you may be reimbursed for the repair or purchase of malfunctioning equipment, but you may not recoup the loss of your wine.
Immediate Coverage for New Acquisitions
The purpose of your fine wine collection is for it to expand. Therefore, it makes little sense for you to ensure your investment and neglect to purchase coverage for newly acquired bottles. In most cases, coverage for new acquisitions is not lumped into blanket coverage packages, nor is it available for itemized coverage until each new acquisition is reported and appraised. A lot can happen between the time of your purchase and the time the new addition is itemized. When you purchase immediate coverage for new acquisitions, the policy gives you sixty to ninety days to report each newly acquired bottle. Until then, it is covered immediately upon entering into your possession.
As a serious fine wine collector, you undoubtedly acquire your treasures from around the world. Likewise, you may travel with some of your favorite acquisitions, both for business and for pleasure. Worldwide coverage for your fine wine collection will protect you in the most unpredictable circumstances. No matter where a bottle is, as long as its ownership can be traced back to you, it will be covered in case of an unfortunate disaster.
Coverage for Bottles in Transit
Naturally, some form of transport is involved once you add to your collection. Whether your prized bottles are being shipped from Paris or from just across the street, the fragile state of glass combined with the stringent rules for proper wine storage can make transit a delicate time. Transit coverage may only extend to transport with the owner on-board in the cases of some providers, so double-checking that your transit coverage includes bottles when they are not under your supervision is paramount.
When deciding on a fine wine insurance policy, it is wise to look into the coverage details instead of assuming that all you’ll need will be available through any provider. Just because a provider specializes in this type of insurance does not guarantee that each policy is made equal and that it will be entirely in your favor. The above types of coverage are not often included in a general fine wine policy, but each one is important to invest in when a collection is worth a fortune, financially and otherwise.