How to insure your wine cellar, and what proof to provide

Water damage, a wine fridge breakdown while on holiday, a burglary: accidents affecting a wine cellar are more common than you think. They all have one thing in common. The day they happen, you must prove what you owned and what it was worth. Most enthusiasts discover at that moment that they have no records to do so.

What your home insurance covers

Most comprehensive home insurance policies cover household contents against fire, water damage, and theft. Wine is included in these contents, but with two limitations. First, an overall cap for furniture and belongings, often based on the surface area of the home. Second, specific terms for "valuables", which may include a collector's cellar, with its own sub-limit and sometimes mandatory security conditions.

A wine fridge breakdown is not always covered: some policies exclude it, while others treat it as electrical damage subject to a deductible. Read yours, or ask your insurer, before you need the answer.

When to declare your cellar

If the value of your cellar exceeds the contents limit or the valuables cap, you must declare it and adjust your policy. The threshold varies by insurer, but a cellar worth several thousand euros deserves a conversation. For a high-value cellar, specialized collection policies exist with agreed value coverage: the value is set in advance based on an inventory and appraisal, and settled without dispute.

Declaring your cellar usually costs a few dozen euros more per year. Not declaring it costs the difference between the cap and the actual value on the day of the claim.

Documents your insurer will require

• A dated inventory: the bottle list, with producer, vintage, format, and quantity, with a recent date. Last year's inventory does not cover this year's purchases.

• Proof of purchase: invoices, receipts, order confirmations. For older bottles or gifts, a substantiated valuation replaces the receipt.

• Photos: labels, bottles, racks, and the cellar itself. They prove that the bottles existed, and their condition.

• A valuation: for wines that have appreciated, the purchase price is no longer enough. A market price valuation, with its source and date, is accepted by most insurers for standard amounts; above that, a certified appraisal may be requested.

Building your file, once and for all

The secret to a solid insurance file is that it takes no extra effort: you build it as you buy and open bottles, because you maintain the inventory anyway. If you need to put it together all at once, here is the order to follow.

• Photograph each label, rack by rack. One hour per hundred bottles.

• Note the location of each bottle and its purchase price, if available.

• Gather the invoices you find into an online folder.

• Value the bottles that represent most of the total value, and use the purchase price for the rest.

• Date the whole file, and keep a copy outside your home.

What to do on the day of the loss

Photograph the damage before touching anything, including the digital display of the wine fridge in case of a breakdown. Record the date and time. Report the claim within the deadline set by your policy, often five business days, or two in case of theft. Attach the inventory, photos, and supporting documents. Do not throw away damaged bottles before the insurance adjuster visits, if one is appointed.

What Tannin does for you

Tannin updates your inventory as you go: scan a label, assign a slot, log a consumed bottle. It estimates each wine's value at market price citing its source, and generates a dated PDF insurance report in one click, complete with photos, locations, purchase prices, market values, and totals. Send it to your insurer, and generate it again whenever your cellar changes.

This article summarizes common practices and does not replace reading your policy or consulting your insurer.