A wine cellar is a trendy addition in most modern homes. The top reasons for starting a wine collection include investment, passion, or enhancing a home's functionality. Although a wine collection is an expensive hobby, it’s an excellent way to learn about other cultures.
Interestingly, wine is among the top 10 alternative investments, with an attractive return on investment (ROI). In that regard, establishing a wine collection is emotionally and financially rewarding.
Wine collectors face typical risks like fire, accidental damage, theft, or contamination. It’s, therefore, prudent to prepare for unforeseen circumstances by acquiring wine collection insurance.
Here’s a simple guide to starting a wine collection.
What You’ll Need to Start a Wine Collection
A well-built wine cellar: Wine is a sensitive beverage that can lose taste or go bad if kept in poor conditions. You’ll need to build a proper wine cellar or install a wine fridge to maintain optimum temperature, pressure, and humidity. In addition, ensure the cellar is located in a dark and dry place to preserve wines’ taste. Remember, sunlight can activate oxidation, a process that distorts the flavor of the wine.
Serving Equipment: Periodically, you may invite friends for wine tasting or celebrations. You’ll, therefore, need a set of suitable equipment for social events. To that end, set aside funds to buy wine openers, an assortment of wine glasses, wine bottle holders, decanters, and wine stoppers.
Factors to Consider When Selecting a Profitable Wine Collection
Wine Origin and Pedigree
Gather wine data points like source, storage, and lifecycle. You’ll also need genetic information and how it was shipped to understand its taste and variations.
It’s crucial to understand the drinking period of the wine— on average, most wines have a range of 1-3 years. On the flip side, some last between 25-50 years.
Research current trends, historic variations, and auction prices before buying a wine variety. Remember, some types command high prices due to their origin, scarcity, or story behind the wine.
5-Point Checklist for Establishing a Wine Collection
1. Evaluate Your Budget
Ensure you set aside enough funds to buy insurance, storage, equipment, and stock.
2. Find a Trusted Seller
Authenticate your seller, whether online, at auction, or winery. Stock a balanced collection using different prices, young, old, mature, and vintage varieties.
3. Avoid Buying Counterfeit Wine
Seek professionals help to assess tell-tale signs like sediments, defective corks, or labels.
4. Insure the Wine Collection
Protect your passion and investment from common risks like theft, accidental damage, vandalism, or natural disasters.
5. Manage Your Wine Collection
Keep an inventory of your wine collection, including records of the stocking date, tasting, and moving balances. In addition, file vital documents like receipts, seller details, initial conditions, and images of the collection.
A wine collection adds value and color to your home. It’s, therefore, prudent to protect your passion or investment against unforeseen risks. FACE Insurance has a tailor-made wine collection insurance solution.
Contact us online or call us at 916.915.9134 to learn more.