A fine wine collection may reflect a deep appreciation for rare vintages, a carefully considered investment strategy, or, for many collectors, both. Fine wine is no longer a niche collectible as Amayès Aouli, Global Head of Wine & Spirits at Bonhams auction house points out. “The global fine wine market is now estimated to be worth more than US$5 billion annually, with an increasingly international buyer base,” he says. “As values evolve alongside global demand, collectors should review both their valuations and insurance cover regularly to ensure they remain adequately protected.”
That starts with a conversation about what the collection means to its owner: its history, significance, how it has been built and how it is intended to be enjoyed. This helps the insurer recommend the most appropriate protection. Peter Bailey, Bespoke Insurance Agent at insurance company NFU Mutual, says, “Where appropriate, we work closely with specialist valuers to help build a clearer and more accurate picture of a collection.”
Changing market conditions
Fine wine should be insured as a dynamic asset rather than a static purchase as Aouli explains. “The most common mistake collectors make is insuring bottles for what they originally paid, rather than their current market value. Over time, values can appreciate significantly, particularly for the world’s most sought-after producers, making regular professional valuations essential.”
The value of a fine wine collection can evolve significantly over time, making regular reviews essential. Bailey recommends obtaining a professional valuation at least every three years. “The risk of underinsurance can arise when collections aren’t regularly reviewed and professionally valued,” he says.
For a wine collection, its provenance, storage conditions and documentation are as important as the purchase price in assessing value. “A bottle that has remained in professional bonded storage with an unbroken chain of ownership will generally command a substantial premium over an identical bottle with uncertain provenance,” says Aouli. “Insurance should therefore reflect not only the wine itself, but also the quality of its history and preservation.”
The journey is the reward
Regular reviews of value are part of the pleasure of collecting according to Aouli. “Building a wine collection is a long-term journey, and following its evolution is one of the most rewarding aspects of collecting,” he says.
Reviews allow collectors to assess much more than market prices. “While financial appreciation can be gratifying, collectors are equally interested in seeing how vintages mature, how reputations develop, and how global demand shifts over time,” says Aouli.
Fine wines are not the only valuable collections that need a considered approach; art, jewellery and antiques also often sit outside standard insurance needs. Bailey says, “For many of our customers, collections evolve over time, often across different categories, which can make them more complex to value and protect than might first appear.”
A personal approach
Given that every collection tells a story of both its period and the person behind it, understanding the connection people have with a collection calls for a personal approach, whereby an insurer gains insight into a client’s lifestyle, their unique collection and what matters most to them. “A more personal approach allows us to understand not just what someone owns, but how it has been built over time,” says Bailey.
Through tailored insurance for homes with contents worth more than £150,000, NFU Mutual’s Bespoke Agents help ensure protection reflects what matters most to their customers. They work on building relationships with customers to provide a personalised service that is able to draw on specialist expertise to help build a clear picture of a collection’s value.Combining this personal approach with specialist knowledge helps collections remain properly protected and enjoyed with confidence.
As Bailey sums up: “Ultimately, it’s about ensuring collections are properly understood and appropriately protected, so they can be enjoyed with confidence.”
Speak to your local NFU Mutual Bespoke Agent about protecting what matters most.
Footnote:The National Farmers’ Union Mutual Insurance Society Limited (No. 111982). Registered in England. Registered office: Tiddington Road, Stratford-upon-Avon, Warwickshire, CV37 7BJ. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. A member of the Association of British Insurers.
