Wine Insurance: Why You Need It, Types, What it Covers

Wine insurance helps you safeguard your wine collection against damage, natural disasters, and spoilage.

While your home or property insurance may offer some general liability coverage for fine wine or spirits, specialized wine insurance offers flexible plans with full coverage at low premiums. 

Let’s explore what wine insurance covers, its key benefits, and the different types of wine insurance.  

We'll also cover a few essential wine storage tips, how Vinovest can help you insure your wine portfolio, and more.

What Does Wine Insurance Cover?

Here is what a standard wine insurance policy covers: 

1. Accidental Damage
2. Spoilage
3. Natural Disasters
4. Theft
5. Others

1. Accidental Damage

Your wine bottle cases could get damaged in many ways (including label damage and breakage.) Wine insurance can protect your investment-grade wine bottles against any damage resulting from non-deliberate or unexpected external causes. 

In some cases, the winery insurance policy or the delivery partner's general liability insurance could cover damage during delivery.

2. Spoilage

Wine is meant to get better with age, but it can spoil or age prematurely if stored improperly (under high temperature, UV light, or vibration exposure.) 

Having a wine insurance will ensure that you get reimbursed if your unopened bottle goes bad, saving you from huge financial losses.  

3. Natural Disasters

A comprehensive wine insurance coverage will reimburse you for any damage or loss resulting from natural disasters such as wildfires (including their effects such as smoke and heat), floods, hurricanes, and tornados. 

Natural disaster coverage is especially useful if you live in places prone to natural calamities, such as Napa County.  

4. Theft

Wine insurance also provides coverage against theft or burglary. However, if you’re a homeowner with a comprehensive home insurance policy, you should check whether that covers your wine and spirits collection. 

5. Others

Certain wine insurance company policies may also offer additional general liability coverage, protecting your wine collection against power outages, mysterious disappearance, or loss in any part of the world.

Types Of Wine Insurance

Let's explore the two main types of wine insurance plans and their key characteristics: 

1. Blanket Coverage

The blanket coverage allows wine collectors to secure multiple bottles of wine under one agreement. This type of coverage has a price cap on the reimbursement value for each bottle, so it's best to opt for it if you don't have extremely expensive wines in your wine cellar.

2. Scheduled Coverage

The scheduled wine coverage is advantageous to any wine collector with an expansive collection of highly valued, rare wines. Here, you must supply the insurance company with a detailed wine inventory, including the value for every bottle. 

A wine insurance carrier may also offer wine collectors a combination of blanket and scheduled wine coverage for their collection. 

Key Benefits Of Purchasing A Wine Insurance

Here’s why you should get a wine collection insurance: 

• Affordability: Purchasing wine collection insurance is fairly inexpensive, costing approximately $400 to $800 a year for a collection worth $100,000.  

• Versatility: Wine insurance policies offer great flexibility, allowing you to insure just a few bottles, a case, or an entire collection of extremely rare or valuable wines. 

• Zero loss: Purchasing wine insurance provides impeccable financial security, reimbursing you the full value of each bottle at the current market rate. 

Wine Insurance FAQs

Here are answers to some of the most commonly asked questions about wine insurance:

1. Does My Homeowners Insurance Policy Cover My Wine Collection?
2. Does Wine Insurance Cover Opened Bottles?
3. How Much Does Wine Insurance Cost?
4. When Should You Consider Purchasing Wine Insurance?
5. How To Determine Your Insurance Requirements?
6. What Does a Winery Insurance Policy Cover?

1. Does My Homeowners Insurance Policy Cover My Wine Collection?

Most home insurance policies do not cover wine or fine spirits. However, as a homeowner, you may be able to purchase limited liability coverage for your wine collection as an add-on feature.

2. Does Wine Insurance Cover Opened Bottles? 

An insurance carrier will only provide coverage for an unopened wine bottle. Once you've opened the bottle, the coverage no longer applies. 

3. How Much Does Wine Insurance Cost?

Wine insurance cost ranges from $0.40 to $0.80 per $100 worth of wine, depending on the value of your wine collection, storage location, and exposure to natural calamities. 

4. When Should You Consider Purchasing Wine Insurance? 

Some personal property insurance policies might cover your wine collection. However, you should consider purchasing separate wine insurance if your wine collection is worth $85,000 or more.

5. How To Determine Your Insurance Requirements?

The total wine valuation should determine your wine insurance requirements. Therefore, it's best to hire a professional who'll estimate the market value of the wine collection based on the following factors: 

• Winemaking technique
• Vintage or non-vintage wine
• Terroir 
• Availability
• Pricing trends

6. What Does a Winery Insurance Policy Cover?

A winery insurance policy is a specialized coverage designed to protect a wine business or a winery against unique liability risks. Here are some of its key wine business insurance types offered:  

• General liability insurance
• Commercial property insurance
• Farm owners insurance
• Crop insurance
• Flood insurance
• Liquor liability insurance
• Professional liability insurance or employment practices liability coverage

Apart from getting wine insurance, you’ll need to ensure you store your bottles under optimal conditions. Else, they’re bound to spoil sooner than later!

Wine Collection: Essential Storage Tips

Here are some important wine storage tips to help you keep your wine inventory in pristine condition: 

• Isolation: It's best to store wine separately, away from chemicals, food, smoke, or odor-producing materials, to prevent it from getting contaminated. 

• Light and temperature: Wine is sensitive to direct sunlight or artificial light, so storing your bottles in a wine cellar is best. Redwine needs to be stored at a consistent temperature of 55º F, whereas white wine at 45-65º F. 

• Humidity: You need to ensure the humidity levels are between 65% to 75%.  

• Vibrations: Store your wine away from home appliances or heavy-footfall areas like stairs, to prevent the wine from aging prematurely. 

How To Insure Your Wine Portfolio

The easiest way to insure your wine portfolio (and have them stored perfectly) is through a wine investment company like Vinovest. 

Vinovest stores your wines in bonded warehouses under optimal conditions and 24/7 surveillance. And in case of damage, loss, or spoilage, Vinovest also offers full wine insurance coverage. The policy reimburses you in full based on the current market value of the bottle. 

Vinovest can also help you buy, store, and sell the finest wines from prestigious wine regions like Napa County and Bordeaux. Vinovest also offers exclusive access to its deep network in the wine business industry. Additionally, the company’s wine experts help you build a successful wine portfolio with ease!

Secure Your Prestigious Wine Collection Today!

Getting wine insurance is an important aspect for any serious wine collector. It’s a great way to protect your fine wine collection and prevent severe financial losses.  

So, sign up on Vinovest today, andsecure your fine wine collection.