I bought a case of Screaming Eagle for $3,000 ($250 per bottle) back in the day. Last month, a fire destroyed my collection. I wasn’t worried—until the adjuster offered me only $3,000. I exclaimed, “That case is selling for $40,000 at auction right now!” The adjuster calmly replied, “Your policy covers replacement cost, but we only pay what you actually paid unless you updated the schedule.”
Key Takeaways
- “Actual Cash Value” is a Trap: This pays you the depreciated value or the original cost. It ignores appreciation.
- “Agreed Value” is Mandatory: You must lock in the value before the loss. You and the insurer agree: “This bottle is worth $5,000.” If it breaks, they mail a check for $5,000. No questions.
- The 150% Buffer: The best policies (Chubb/AIG) pay the Agreed Value plus up to 50% if the market price has spiked since your last appraisal.
- Inflation Kills Coverage: In 2026, wine prices have outpaced general inflation. If you haven’t reappraised since 2023, you are underinsured by 30-40%.
The “Why” (The Trap)
The trap is the “Valuation Clause.”
Most standard policies default to “Replacement Cost,” which sounds good, but for collectibles, they often interpret this as “cost to replace with a similar new item” (which doesn’t exist for a 1990 vintage) or simply the original purchase price.
You need a “Valued Policy” where the payout amount is fixed on the declaration page.
The Investigation (I Called Them)
I ran a quote for a collection worth $100k (market value) but purchased for $20k.
State Farm (Personal Articles Floater)
- My Experience: They required a recent bill of sale or appraisal. If I submitted the bill of sale ($20k), they insured it for $20k. To get $100k coverage, I had to pay $500 for a professional appraisal to prove the higher value.
Cincinnati Insurance (Capstone)
- My Experience: They offer “Agreed Value” but include a “Market Value Protection” clause. If the market price is higher than the agreed value at the time of loss, they pay the market price (up to a limit). This is excellent.
AIG Private Client
- My Experience: They accept “Auction Results” as proof of value without a formal appraisal for items under $50k. I could send them a WineSearcher screenshot to update my limits.
Comparison Table
| Feature | Agreed Value Policy | Standard Replacement Cost | Actual Cash Value (ACV) |
| Payout Basis | Fixed Amount (e.g., $5,000) | Cost to buy “similar” item | Depreciated Value |
| Appreciation Covered? | Yes (if 150% clause exists) | No | No |
| Proof at Claim | None (Proven upfront) | Must prove value after loss | Must prove value |
| Best For | Investment/Vintage Wine | Current Release Drinking Wine | Nothing (Avoid) |
Step-by-Step Action Plan
- Export Your CellarTracker Data: Sort by “Market Value.” Identify any bottle where Market Value is >2x your Purchase Price.
- [IMAGE: Screenshot of CellarTracker report highlighting bottles with >100% appreciation]
- Get a “Desktop Appraisal”: You don’t need a guy to come to your house. Services like “WineOwners” or auction houses offer digital appraisals based on your inventory list.
- Update Your Schedule: Send this new list to your agent. Say, “I want to update my Agreed Value schedule to these numbers.”
- Pay the Extra Premium: Your premium will go up. Pay it. Saving $200 on premiums to risk losing $40,000 in value is bad math.
FAQ
How often should I update the value?
Every 3 years, or immediately if a specific region (like Burgundy) spikes in price.
Can I use Wine-Searcher prices?
For setting the insurance limit, yes. For claiming a loss on a standard policy, maybe—but adjusters will use the lowest price they find, not the average.
What is “Release Price”?
The price the winery sells it for. $300 for Screaming Eagle. The “Secondary Market Price” is $4,000. Never insure for Release Price unless you are on the mailing list and can actually buy it again for that.