Insuring Your Wine Collection Through Chubb
Insuring Your Wine Collection Through Chubb
It can take a lifetime to build a collection of fine wines. For some collectors, the years of searching the world's wineries
for the finest vintages is not simply a hobby, it is a passion.
Serious wine collectors understand the need to protect their wine cellars. Chubb also recognizes this need.
Chubb is pleased to announce an insurance program designed specifically to meet the needs of the serious wine enthusiast.
Our Wine Program ensures that your investment of both time and money is protected against catastrophic loss.
Our ongoing relationship with leading wine experts provides us with the expertise necessary to provide a comprehensive wine
protection program, including insurance coverages, loss control services and inventory systems.
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Who should consider purchasing wine insurance?
Anyone who's serious about collecting wine. Typically, homeowners insurance alone does not provide the kind of protection
you need as a wine collector.
What protection does Chubb's wine insurance provide?
With Chubb, coverage for wine is "all-risk." This means you are protected against a broad range of losses, including fire,
theft and breakage. What's more, coverage is worldwide.
Is wine insurance expensive?
Not with Chubb. In fact, our competitive rates make insuring your wine easier and more affordable than ever.
How do I insure my collection?
It depends on the value of the wine. Chubb offers two options. For one or more bottles valued at less than $1,000 each, you
can purchase "blanket" coverage under one lump sum. More expensive items can be specifically listed on the policy, with each
bottle described and individually insured for a specific value. With Chubb's wine insurance, there's no deductible in the
event of a covered loss.
Does Chubb require appraisals?
Typically, not for individual bottles valued at less than $10,000. All you need is a good description and value. Chubb generally
requests appraisals only for bottles valued at $10,000 or more.
Can I combine this coverage with my other personal insurance policies?
Yes, and we encourage you to do so. By combining wine insurance with your other Chubb coverages, you'll get one policy and
one bill for all of your personal insurance.
Do I have to inform my agent or broker each time I buy a new bottle of wine?
Not immediately. If you already have wine insurance through Chubb, you have up to 90 days after you purchase a new bottle
of wine to inform your agent or broker. For those 90 days, Chubb provides you automatic coverage -- up to 25% of your itemized
coverage or up to $50,000.
How can I obtain wine collection coverage from Chubb?
Chubb is proud to support independent agents and brokers. They represent a variety of companies and are best qualified to
help you determine the appropriate coverages and limits to fit your needs. To learn how a policy from Chubb can help protect
your wine collection, please call your local independent agent or broker today. To locate an independent agent or broker in
your area, please use our Find an Agent feature.
Quality - The specific climate of a vineyard and its suitability to the production of the finest wine-producing grapes, along with
the skills of the grapegrower and winemaker, affect most directly the quality of the wine. Excellence of both site and labor
are the most important underlying factors of value. Consistently good performance over time enhances value.
Condition - The second most important factor is condition, as wine no matter how good is worthless to drink (although perhaps
worth something as a conversation piece), if not cared for properly. Wine kept in continuous temperature (and preferably humidity)
controlled storage since release or in “passive” underground storage providing similar conditions, will hold its value throughout
the “life-expectancy” of the wine. The best conditions for wine are a constant temperature in the 52°-58°F range, with 80%
humidity, without light or vibration. The appearance of the bottles is also a factor: bottles kept in original wooden cases
or cartons, with good labels, capsules, and fills for age, receive a “full valuation”. The fill level of the wine is very
important; fills less than expected for age (below bottom neck for vintages less than 20 years old; just below top shoulder
for vintages 20-40 years old) are usually discounted by 20%-50%.
Ageability - Wine with a long life-expectancy is much more valuable; this explains the high prices for top Bordeaux and Montrachet,
the best examples of which have the longest life expectancy of all chardonnays. Quality of the vintage is a related factor
as the best vintages (such as 1990, 1989, 1986, 1982, 1961, and 1959 in Bordeaux) impart power and richness to the wine through
high extract and tannins, which evolve over time, adding complexity and finesse (and “tastes values”) to the wine. The greatest
wines can last over fifty years, though the acceleration in value is usually faster prior to the peak age of the wine (25-30
years typically for great Bordeaux).
Rarity - Chateau Le Pin, which produces 600 cases annually, and Chateau Petrus, which produces 4,500 cases annually, are wines from
Pomerol (Bordeaux) of comparable quality; however Le Pin has recently sold for 50%-100% more than Petrus. The only explanation
is rarity. Hard-to-obtain “cult” wines are more valuable than larger production wines of similar quality as long as they have
been made well-known to collectors.
Provenance Wines from a famous collection will sell for more than the same wines from an anonymous collection. Part of this
has to do with knowing where the wine has been, and having one’s own taste confirmed by that of the rich and famous. If you
are a seller, it behooves you to be famous.
Please email us for more information on Chubb's products and services.
Controlling the environment you store your wines in is very important, but it needn't cause either a headache or a drought
in your wallet. Storing wine properly can be as easy and affordable or as complex and expensive as you allow it to be. Whatever
your preference, don't let the worries of wine cellaring take the fun out of wine.
To help you on your way to perfect wine cellaring, we've rounded up some of the most commonly asked questions and helpful
articles.
Where can I store all these wines?
There are three recommended places to store your wines:
Unless you have been blessed with a beautifully cool, not-too-damp basement, you're going to need to buy, rent or create a
storage space. Buying or fixing up a cellar can be anywhere from a small to grand expense, but if you choose to rent, your
fees may be as low as $1 per case, per month.
Can't I just use a refrigerator?
For short-term storage, refrigerators are acceptable. But for true cellaring, it is definitely not your best bet. The temperature
of refrigerators on the average reach no higher than 45 degrees F, the highest temperature to safely keep perishable foods.
This temperature is fine for wines that will be drunk in the near future, but it will not allow for proper aging in wines
looking for longer cellaring periods. Additionally, refrigerators generally do not maintain a high enough moisture level for
storing wine. This will not adversely affect wine stored for a few months, but it eventually may dry out the corks, which
might allow air to seep into the bottles and damage the wine.
Does the temperature really matter that much?
Yes, and no. Wine should be stored in a 45 to 65 degree F climate. People disagree on ideal temperatures, but 55 degrees F
is accepted as a close-to-perfect temperature. Maintaining the correct temperature is the most important aspect of wine storage,
but minor fluctuations in temperature should not be a concern. Extremes in temperature or prolonged variances will damage
wine, though. Prolonged temperatures above 70 degrees F may damage the wine's freshness and subtleties or may cause the wine
to cook, robbing it of its fruitiness and flavor. Temperatures lower than 45 degrees F may cause the wine to freeze, expand
and push out the bottle's cork.
Will wine survive a few hours journey in a hot car?
A few hours of heat above 70 degrees F should not damage your wine. Temporary fluctuations in temperature won't affect your
wine. If you are transporting wine by car for more than a few hours, you may want to look into a small cooler or other method
to keep the bottles out of the sun and heat. And never leave wine in the car's trunk.
Could my cellar be too humid?
Yes. Too much humidity can cause mold to grow on the bottles. As long as the mold stays on the cork or around the bottle's
lip, this should not affect the wine. Mold may cause label damage, though, which may decrease the resale value of the bottles.
A humidity level of no more than 80 percent is recommended.
Could my cellar be too dry?
Yes. Not enough humidity may cause corks to dry and shrink prematurely. This can allow air into the bottle, oxidizing the
wine and robbing it of its fruit flavors. In drastic levels of dryness, this damage may cause the ullage (the empty space
in the neck of a bottle) to increase. The importance of humidity is a topic of debate in connoisseur circles, but keeping
your wine at average humidity levels is suggested.
Does light damage wine?
Colored glass is used for most bottles as a preventive measure against the potential heating and aging influences of the sun.
Some wine collectors believe fluorescent light adversely affects wine, but there is no evidence to prove this theory. Still,
keeping your cellar dark in between visits is a wise idea.
Will vibrations disturb my wine?
Even if you live above a train station, vibrations should not adversely affect your wines. The worst vibrations can do is
disturb the sediment. You should not concern yourself with the vibrations caused by refrigerators, storage units or from a
frequently used staircase.
Is it necessary to store bottles on their side?
It has long been believed that bottles should be stored on their side. This allows the wine to keep the cork wet, preventing
it from drying out. There is no evidence that keeping the bottles on their side is going to keep the wine any better than
setting them straight up, but there's no harm in remaining conventional here.
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