End of The Road

This part of the journey has concluded.

We’ve now reached the end of the insurance claim process and I’m at the point of payout. Now seems a good time to wrap up the procedure and the precautions and advice I have about my experience. There are links to the companies I mention in the article at the end. This is not a promotional piece but a summary of my experience of the whole process, and I feel it would be remiss of me not to share the details of the companies used and my feelings about the service provided. I’ve included some pictures of the damaged bottles and cartons.

With a quick email it was over just as quick as it started. My insurance underwriters are prepared to pay for the loss in value to my collection. 21 bottles worth just a shade under £6000 and now they assess there has been £1000 loss in value. Realistically this is the best situation I could be in as all the bottles are still drinkable and had they been written off by my insurer I would have maybe not got the chance to purchase the ones I wanted to taste. Now that decision is mine. I’m not so sure that the value now is worth what was determined it to be post flood, but that is the thing with auctions – it could well be more or I get the chance to crack open a bottle I otherwise might not have.

Looking back on the experience from the horror of the first call to inform me there has been a problem to where I am now, the experience has not been as bad as first feared and indeed has been a lot smoother than expected. Let’s look at the reasons for this, for if there is one thing I’ve discovered, planning ahead prevents or limits disasters.


Completely wrecked Strathearn Inaugural 1st Cask Release. Items like this should be on upper shelves to protect the carton

Find a decent storage area or facility

I use a storage facility in Perth. It’s about 70 miles from my house but prevents wee accidents when I maybe fancy cracking into something that I have bought as an investment. Ask the facility about their flooding record, ask about flood prevention. Look at security and the condition of the building. Is it likely to suffer flooding from a watercourse? Is it in good repair – does the roof look likely to leak? It’s always better to get an internal storage unit as it is less impacted by the changes in temperature. Going for a first floor locker prevents accidents like mine. Be aware those close to a metal roof are more likely to suffer variations in temperature and could affect your seals.

Keeping the collection at home? Keep it in a darkened place so the whisky isn’t exposed to direct sunlight or variations in temperature.


Not the most expensive bottle damaged but discontinued and going up in value. The water damage relegated this to a drinking bottle. Doesn’t affect the value greatly. Box in similar condition.

Get Insured

If using a storage facility, make you are well insured. Out of around 130 storage units in my facility, only 27 had any sort of insurance. Close to 100 units were flooded (some of the external containers did not get affected), and many of the insured only took the basic level of insurance which was £1000. However, the value of the items damaged was a lot higher and people have been left out of pocket.

I knew my items have high value, so using the facility insurance provision was not economic. So I insured via a specialist broker, Bruce Stevenson insurance brokers. Not only was this a great product, the service provided by them has been exemplary. I felt really guilty having only started my policy in April to making a claim in August, but that’s what insurance is for. I’m impressed by the friendly and efficient service I received, especially from Alexandra Richards, the broker that dealt with my claim.


Cardboard cartons don’t always make much difference to prices. The loss of this one reduces value by about 10%. The bottle dried out with little damage, but relegated to a drinker.

The process was easy – one phone call and e-mail started the ball rolling. All I had to do was access my locker, record the damage and provide the details to them. They sorted the rest. They arranged a loss adjuster to see the damage who assessed how much damage had been done. I already had an estimate by time my loss adjuster arrived, so was already ahead of the game. That is why it pays to know the value you paid for your bottles and an idea of what they are worth as time goes on.

The loss adjuster reports back to the insurance company about the damage, having taken advice from a valuation expert. Then it is just a case of waiting to see what the insurance company will do. Alistair Spence of Criterion Loss adjusters gave some good advice about my situation and was very reassuring about the whole process.

If you are storing at home, make sure your home insurance will cover you in the event of flood and fire. Just because you only paid £35 for a Speyburn Flora and Fauna in 1991, doesn’t mean that it is still worth that amount. It can be well into the £2000+. If that gets destroyed would your insurance cover you?

Indeed, those with large collections at home may find themselves seriously underinsured as most policies have a limit per item, and above that will require each individual high value item individually listed. Be aware, large collections in the home will be seen as a fire hazard, something pointed out to me by my home insurance company that uses a red telephone on wheels as its logo.


This Ruby box still had flood water in it. As it came from a drain, the contamination aspect has to be taken into account. Any damaged cardboard may still have to be
scrapped due to this.

Valuation

I now know a couple of whisky brokers, and was lucky enough to have one who valued my damaged items for a nominal figure acceptable to any tight Aberdonian. However it is important to have an idea of what your collection is worth. Companies like Rare Whisky 101 monitor the prices at auction of bottles, and will provide a valuation or you can use the Bottle Valuation Index service which you can use to track your high value bottles, but you need to buy credits to use this service. I believe other companies do valuations cheaper, but I’ve used RW101 for a few years now and find the service pretty good and accurate.

Packing

You cannot just keep your whisky collection in its carton and expect it to survive. Part of the reason my collection survived mostly intact was due to the fact I professionally packed it in Airsacs. The only bottles damaged were those not in Airsacs on the lower layer of boxes on the pallets. I’ve learnt a lesson from this and now will flat pack cartons and make sure any packing that could be damaged is now at a level that flooding can’t affect it. Of course; the roof could leak, but I’ve put PVC dust sheets over my boxes to limit the chance of damage.


It wasn’t just cartons that got damaged. Wee leaflets like this as part of the UDV Rare Malts were also damaged. While not a great issue, they are always the nice to have for collectors.

I use silica gel in all Airsacs, as well as polystyrene nuggets. Don’t use the environmentally friendly ones, as they go to a nasty goo when wet. All my packing materials come from Macfarlane Packaging. Airsacs aren’t the cheapest solution, but the alternative isn’t worth thinking about. The Airsacs on the lower layer of the pallets gave rigidity to the sodden cardboard boxes, keeping more expensive whiskies high and dry. Had this not been the case, then we would have been looking at a high 5 figure loss. If you are collecting whisky and storing it, a £200 investment in storage solutions makes sense and preserves the condition and value of your bottles.

And Alexandra from Bruce Stevenson agrees with me. For any asset it is important that good risk management and protection is key, and hopefully my insurance company sees that I made the adequate provisions for the foreseen threats in choosing a unit with flood protection, not exposed to temperature variation and professionally packed. Nobody foreseen the flood coming up from the drains and overcoming the flood prevention measures. And that’s why we insure.


One of the more severely damaged cardboard cartons.

At home, most of us will want to display our bottles. They are our whisky babies, but we need to store them where light will not fade labels or liquid, away from sources of heat and cold, away from children’s hands that might not drink it but accidentally knock it over and break it. Just be careful. It is understandable that you want to display your pride and joys, but consider where carefully. I know many people who have a whisky cupboard in their homes. Consider one yourself.

Wrapping Up

I’ve considered all these things and still got caught out. Don’t think it can’t happen to you as it can. It’s not the events that you can forsee that catch you, but those you don’t. I’m just very grateful I have had a specialist insurance policy in place which has met each one of my expectations. For around £350 the piece of mind alone has been priceless. I may have been facing a loss over a hundred times the cost of my premium so it is a no-brainer.

Moving On

And now with payment looming I now have the decision of what to do with the damaged bottles. Part of me says sell them and move on. Part of me says drink them. In the case of the 10 year old Macallan this will be happening as I know the value in that bottle, and it is a superb dram. I’m licking my lips already in anticipation and so should my friends as I will be sharing. Of course I am on the lookout for another one, but we will see what comes up. I think a new change of direction is needed. From every disaster comes new beginnings and that is the way the pragmatist in me is seeing it. There will always be new bottles to buy, perhaps with a new focus altogether. Keep an eye on the blog or my social media feeds to find out.

The one thing that bothers me about items like the Macallan 10 is that I paid £240 after fees for it. Auction prices are now £340 then fees on top of that. Although I’ve been compensated fairly, there is an emotional thing that won’t let go. I’d say that once you sell, write off or open a bottle, you need to detach yourself from it. You need to stop tracking it unless you plan to buy another. For me it’s almost like stalking an old lover to see what she’s up to, which is wrong and creepy. Move on to bigger and better things.


Slight runs on ink and bubbling of labels means the value to a collector is negligible but still holds a lot of value as a drinker due to it’s rarity. I’m on the lookout for another one and am likely to sell this one.

I have a couple of things I wish to say in conclusion. Firstly, to all those who wished me well after my disaster, thanks for your support. It could have been a lot worse, but it was very touching to have your support, even though I’ve never met most of the people on the www (world whisky web). I wouldn’t want anybody else to go through what I’ve just experienced. It’s a fact of life we never expect bad things to happen, something that could be summed up by the fact how few in the storage facility had adequate insurance or any insurance at all.

End Notes

It’s also been good to have been helped and advised by others in the whisky industry, and a special shout out goes to Andy Simpson of Rare Whisky 101. The resultant whisky geek out gave me tons of food for thought.

Lastly, I’ve had great service from my insurance company, Bruce Stevenson Insurance Brokers. They’ve ensured what needed to happen did at the right time, good communication and always left me with the impression that my situation was important to them. Despite not being a customer of theirs for very long, I felt every bit as valued as a customer who has used them for years.

I apologise if it seems I’m over promoting this company, but it’s with good reason. Other insurance companies are available but I can only speak from my experience with Bruce Stevenson compared to the cost of others I’ve used in the past. Bruce Stevenson has been recommended to me by several people and that spoke volumes. It’s turned out to be a good call.

Insurance can seem like that unnecessary expense that could be dispensed of to buy another bottle, but don’t lose your kingdom for the want of a nail.

Link to Bruce Stevenson insurance broker

Link to Rare Whisky 101

Link to my blog article on storage and packing

Yours in Spirits

Scotty

Index of tastings here

Index of articles here


This is written as a hobby, and I appreciate your likes and shares, either on WordPress, or why not visit one of my other social media channels. Lets spread the whisky love!

Scotty’s Drams encourages responsible drinking. To find out the facts about drink, and where to find help if you need it visit Drinkaware.co.uk by clicking on the link.

Photo Credits

All Photos – Authors Own

When it rains, sometimes it pours

not all water is good for your whisky……

It’s not often that I write an emotional piece when I think about my whisky journey, but if there ever was a time, this is probably the best time now that I’ve suffered a small whisky disaster. I more often think about this journey in where it has taken me, where it is yet to go and how long it may take. I guess that I never planned it and it will be hard to put an end to it, so really all that can be done is look to where you’ve been. The blog was a way of me moving away from the negativity surrounding the politics of the UK that had been dominating social media, a tidal wave that I had been getting caught up in and it was time to change direction. I’d been collecting whisky on an incremental basis since 2006, and it was time to make bigger inroads to the journey.

Writing the blog hasn’t always been easy. I work away from home for long periods of time and believe it or not the last thing on my mind when I get back is devouring large amounts of alcohol. I have a pre-school daughter which takes up a lot of my time. That’s why I may not be as up to date about whisky happenings, but I never intended to be. I’m just sharing my journey and knowledge, hoping that others can relate. And if this is a journey, then up until last week, the ride was smooth and getting smoother. The metaphorical road was a perfect piece of tarmacadam ridden over by a Rolls Royce with suspension so fine nothing was going to interrupt the partaking of a sneaky dram in the back seat while your chauffeur takes care of the driving. Then the journey changes, I run out of reviews, my storage locker gets flooded and before you know it, that smooth ride hides the fact that you are aquaplaning sideways across the carriageway to smash into a tree and erupt into a ball of flames.

Thats what my journey has felt like this past fortnight.


There may be trouble ahead

Aquaplaning is actually an effective metaphor, as mid August saw me return from a 16 week trip offshore to find Scotland being hit by extreme weather. I was parked up in Aberlour having a sandwich when I thought I saw the first bolt of lightning, only to be subjected to a deluge and lots of surface water on the roads. Can’t beat that experience when you haven’t driven in so long, in a strange car and the windscreen wipers are just smearing the remains of flies across the windscreen rather than moving any water. Little did I know that some parts of Scotland were going to be hit a lot worse and that included my storage unit in Perthshire.

It was a completely different climate the next day – a sunny day in upper Speyside with little memory of the thunder the day before. I was spending the afternoon constructing the behemoth of a trampoline my wife had bought for our daughter when I received a call on my phone informing me that my locker had been flooded. While the skies remained blue, there was dark clouds on my horizon.


As I remembered it and hoped it would still be. Fat chance.

I don’t know if you have ever suffered the loss of a treasured possession, but I had literally felt as though I’d been punched hard in the stomach. I knew that I had some of my bottles on shelving but the majority of the collection was in cardboard boxes sitting in pallets. I had no idea what to expect. My mind was racing through the list of bottles I may have lost and this is where the emotion kicks in. While I never intended drinking much of the bottles I had collected, I was running through bottles that I would hate to have lost, not just based on their value, but on their emotional value. Each bottle had a story. I remember the first bottles I bought that started my collection – 2 Glenmorangie Truffle Oak Reserve, purchased in 2006 during a visit to the distillery. I paid £150 each. They now auction about 3-4 times that value. Or even special bottles like my GlenDronach handfills – one of which was distilled on my 19th birthday and which I managed to handfill on my 46th birthday. My Flora and Fauna collections – even though not the greatest or the most expensive whisky, I’ve spent the time getting all the wooden boxes, nearly all the 1st editions (only 2 short now) and even have two Speyburn to complete the two sets. I’d have been horrified to lose these. As would my insurer I’d guess. Recent Flora and Fauna Speyburn auctions have seen a spike up to £2900 a bottle.

And this is the question it comes to; is whisky not just a commodity that requires monetary investment but also emotional investment? i think if you are solely buying it to drink, then perhaps not, but if you are collecting it for whatever reason then I suspect there has to be an emotional attachment. I knew this to be the case when I eventually was able to access the site to see for myself. The financial burden was covered, as I was insured, but how would the emotional burden be?


Wrecked Strathearn Inaugural Bottling. Irreplaceable.

I’ll cut to the chase – most of my treasured bottles were safe. Thankfully everything on a shelf was high enough, and those bottles on a pallet were mostly in AirSacs, which not only provided water resistance and saving most of my bottles, but also gave rigidity that prevented the boxes on the top layers hitting the water too as the cardboard box on the bottom disintegrated. Then the truth dawns – what about the bottles I kept in their cardboard cartons and not AirSacs? What if they were on the pallets? Sadly, because I well mark boxes with their contents, I realised I had some pretty expensive bottles or pretty irreplaceable bottles on the bottom layer.


this is why you insure your collection. Not an expensive bottle, but an example of water damage to a carton

It’s easy to get caught up in gloom. The best thing to do is celebrate what has survived. The aforementioned Glenmorangie and GlenDronach were safe. The rarest of my Diageo Rare Malts had also survived. But then I was seeing the Glen Albyn 1975, Brora 1982, Cardhu 1973 come out of boxes that had been devastated. My Strathearn bottles from the inaugural bottling of the first cask – both had their presentation box and certificate destroyed. My small Macallan collection took a big hit. My 80’s/90’s Macallan bottle, along with the 1824 series Amber, Gold, Sienna and Ruby – gone, although the 1824 series is largely still obtainable at reasonable prices. Glenmorangie Swamp Oak – gone. In fact, most stuff with a carton that was on the bottom layer of boxes on the pallet – gone.


The Glen Albyn 1975 26 year old was not so lucky with its carton.

It’s definitely an emotional time when you consider that most of the collectable value is gone. All the hard work gone. It’s not even as though you can claim on insurance for the hard work put in sourcing these bottles. That is when you may feel the most low. This is when we know what our connection with our drams is. Whilst mine started out being financial, as it is intended to pass this collection over to my daughter or use it to fund her place at university, I am now well aware it has gone beyond this. Perhaps you will feel the same if you have a decent collection, a sense of pride.

What I can’t lose sight of are two facts – I could have lost the whole lot, and others lost more treasured possessions than me. It all comes down with a bump when during the same bad weather people had homes, businesses and cars flooded. Other people in the storage units beside me lost personal possession such as furniture, photos, books, clothing. mementoes; it may seem like clutter to others, but they cared so much about it that they paid to have it stored. All very sad. And while my own tale is sad enough, at least it is easier for me to move on.


An example of label damage. Pity, prices are starting to rise for this one.

And I need to point out that my recent article on insurance was not only well timed, but has been reinforced by what I have witnessed over the past couple of days. People throwing out possessions, some of which looked antique had no insurance. I’ve been informed that out of 130 ground floor units, only 27 had any sort of insurance, and most of them was only the very basic £1000 offered by the storage facility. This reinforces the need to make sure you and your whisky collection are adequately covered. It’s bad enough losing memories, but don’t let yourself be out of pocket.

The bottom line is don’t think it won’t happen to you. I did but had insurance anyway. You have to remember that while whisky isn’t life or death, it’s more important than that.

I’ve an appointment with the loss adjuster next week. We’ll soon see what will be written off and what will be salvageable. Hopefully, fingers crossed that the soaked labels have dried out. I’ll keep you informed.

Yours in Spirits,

Scotty

Index of tastings here

Index of articles here


This is written as a hobby, and I appreciate your likes and shares, either on WordPress, or why not visit one of my other social media channels. Lets spread the whisky love!

Scotty’s Drams encourages responsible drinking. To find out the facts about drink, and where to find help if you need it visit Drinkaware.co.uk by clicking on the link.

Photo Credits

All Photos – Authors Own

All content and photos are subject to copyright and may not be used or reproduced without permission.

Cover Your Ass(ets)

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?


Cheap on release. Auctioning for over £2000 now.

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.

www.brucestevenson.co.uk

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.

Keep safe!

Yours In Spirits

Scotty

* considerably more whisky than 2 bottles have been purchased.

Index of tastings here

Index of articles here


This is written as a hobby, and I appreciate your likes and shares, either on WordPress, or why not visit one of my other social media channels. Lets spread the whisky love!

Scotty’s Drams encourages responsible drinking. To find out the facts about drink, and where to find help if you need it visit Drinkaware.co.uk by clicking on the link.

Photo Credits

All Photos – Authors Own

All content and photos are subject to copyright and may not be used or reproduced without permission.