Why you need to protect your collection
I’ll begin this article with a very large apology. I am sorry that there has been no weekend article for a couple of weeks, but I’m back at work, and I haven’t been able to arrange anything. Fear not, at least I have enough taste reviews to post, as long as this trip doesn’t extend beyond 12 weeks. Not having adequate cover of articles is a risk I have to take given that I can have an unpredictable work pattern, which will only get worse as the recession in the oil industry continues.
Turning our mind to our whisky collections, a lack of cover is a pitfall that we shouldn’t let ourselves fall into. Buying a bottle here and a bottle there is an easy way to building a modest collection but it easily builds into a monster that we can have no control over. Suddenly you can be faced with a collection that may not be covered under your home insurance. Even if you fully intend to eventually drink the bottles that you have bought, I’m well aware that this may not happen and with the increase in value of some bottles on the secondary market you might have a considerably higher value of collection than you expect.
Now, what would be the case if the worst was to happen and there was an accident that destroyed your collection? It could very well be that you have a small, inexpensive collection and your home insurance will cover it. But what if you go through your list of what you lost to find it worth a lot more than you realised and you aren’t fully covered? What if you have a Speyburn Flora and Fauna you bought for £35 in 1991 and you find that it is now auctioning for £2000 and is not covered by your house insurance?
The answer is simple – you may need to consider specialist insurance. This is something I have to consider as I have a remote storage unit. My home insurer was not keen about covering my modest collection, most of which is well above 40% abv. The fact I have well over 200 bottles would mean they would not insure me for a reasonable cost given the simple fact of fire risk and value so a remote storage unit made sense. This option may not be appropriate for those with a smaller collection that they intend to drink.
Due to most home insurers insisting that expensive items are insured separately, this can add quite a lot to your premium and may not take into account of increase in market value. It then makes sense that a specialist insurer is needed. I already had one for my storage unit, but went through a broker that recommended me an insurance that was in the end not a specialist whisky insurance and was considerably more expensive and less flexible than a specialist insurer. Thus meant the search was on.
The problem with most storage insurances is that they are quite particular about what can be insured. My initial storage location would only insure me for £10,000 for my whisky, meaning that I could not store my whole collection there, which kind of defeated the purpose of having a storage unit in the first place. In my current storage location, I found the optional site supplied insurance being quite expensive which would have resulted in a £50 a month charge. Having done a little shopping online, I came across a site that would insure me, but wasn’t too much cheaper at £550 a year for £30,000 of insurance. Still pretty expensive, and not that flexible.
The good news is that as I do my social butterfly bit around the various whisky people in the area, I came to be recommended a company called Bruce Stevenson Insurance Brokers, based in Edinburgh. This was much more flexible. As long as I had proof that I owned the bottles I was insuring, then I would be able to claim market value should the worst happen, or to the value of an independent valuation provided by a whisky specialist such as Rare Whisky 101. I’m not going to go into the ins and outs of the policy, as each situation could be different, but as an Aberdonian where cheapness matters, I was getting better cover for £200 less a year. What I also found was that I was able to phone the company with my initial enquiry and deal with person when buying my policy. I feel the personal touch is so important, especially when the joy of whisky is sharing not just liquid, but experiences. From speaking to my broker I was able to pick up hints and tips that would be missed in a completely online transaction.
So, in conclusion my whisky collection is now more adequately protected for less money. Winner winner chicken dinner. Except with the saving of more coin, I’ll be eating steak instead of chicken – once I get off this floating prison. Mind you, being offshore means I can always shop online for more whisky with the savings made. Scratch that – I already have almost wiped out the savings by buying Edition 3 of the Tamdhu Dalbeallie Dram. Ooops.*
I’ve provided a link below for you to look at should you wish to insure your collection separately, but it is worth thinking whether or not your existing home insurance will cover the whisky you have.
Please be aware that I am only recommending this company based on my personal experience, coupled with being recommended my many people I have spoken to in the whisky retail and fellow collectors. This recommendation is completely independent and I am not receiving any payment or gratuity for this article.
Yours In Spirits
* considerably more whisky than 2 bottles have been purchased.
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2 thoughts on “Cover Your Ass(ets)”
Good job again, Scotty, a lot of valid advice and info. I don’t think that you are doing anything biased by indicating 1 example of a specialist insurer, after all, anybody who has a collection that is worth insuring will have taken many considerations into account already. Insurance is the last line of defence of your asset, and is there in case all else fails. Don’t put all of your eggs in 1basket.
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I think it’s often overlooked. I’ve seen a lot of people on whisky forums or communities with expensive bottles yet I bet a fair few would be in for a shock if claiming on house insurance.
If your insurer learnt how much flammable liquid may be held in a whisky collectors house, they may be a bit reticent in paying out of there is a fire if not declared. A certain well known red telephone insurance company once told me this.