THE EVOLUTION OF FINANCIAL INTELLIGENCE W O R T H M A G A Z I N E E S T A B L I S H E D 1 9 9 2 WORTH.COM The 10 best executive health centers; Facebookʼs bottom line; how Lululemon made yoga hot. 10 must-ask questions for your financial advisor; Qatarʼs Persian Gulf success story. What to know before chartering a yacht; how to buy the worldʼs most exclusive tickets. VOLUME | EDITION INSIDE THE BIGGEST PRIVATE EQUITY FIRMS THE NEW RULES OF INVESTMENT THE HEDGE FUND FRONTIER MAKE GROW LIVE W ® 07
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TH E EVO LUT I ON OF F I NANC I A L I N T E L L I G ENC E
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ORTH MAGAZIN
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A B L I S H E D1 9
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WORTH .COM
The 10 best executivehealth centers; Facebookʼsbottom line; how Lululemonmade yoga hot.
10 must-ask questionsfor your financial advisor;Qatarʼs Persian Gulfsuccess story.
What to know beforechartering a yacht; howto buy the worldʼs mostexclusive tickets.
VO LUME 1 9 | E D I T I ON 0 4
INSIDETHE
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EQUITYFIRMS
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THEHEDGE
FUNDFRONTIE
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MAKE GROW LIVE
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Does my homeowners policy covermy wine collection?By Spencer M. Houldin and Kurt A. Thoennessen
Not fully. Wine is considered part ofyour household contents and is insuredwithin the personal property coverageprovided in the homeowners policy.However, a homeowners policy doesnot cover your personal property forbreakage of a fragile article (such as abottle of wine) or loss to extreme tem-perature change (spoilage). Also, anyloss would be subject to your policydeductible.
HOW DO I MORE PROPERLY INSURE MY COLLECTION?A number of insurance companies o#erspecialized contracts designed specifi-cally for wine collections. Through thisspecific protection, a collection canbe insured for both breakage andspoilage. Coverage is a#orded world-wide and a deductible would notapply. Coverage for bottle condition isincluded, which would be importantfor the investor. As an example, waterdamage will ruin a label. Althoughthe wine itself might not be damaged,the value of the bottle is reduced. Winecoverage would respond to the ensu-ing diminished value of the bottle. The cost of this coverage is relativelyinexpensive—approximately $250 per$50,000 of coverage.
Two approaches are used in insuringa collection: a blanket basis or individ-ually scheduling a bottle. Under theblanket approach, one would insurethe total value of the collection, butwould be subject to a $10,000-per-bottle
limitation. The other is to specificallyschedule an individual bottle. We typi-cally recommend insuring the collectionon a blanket basis and only specificallyinsuring those bottles with a valuegreater than $10,000.
It is important to be aware that thiscoverage does not react to a corked,madeirized (having oxidized, resultingin a brown or amber color and staleodor) situation or to ullage (the amountof liquid within a container that is lost,as by leakage, during shipment orstorage of bottles).
HOW IS A LOSS SETTLED?When wine insurance is purchased,the policy will provide coverage for itsreplacement value; the insurance com-pany will compensate you the cost tobuy the bottle at today’s marketprice. If the bottle appreciated since thepurchase, you would realize the appre-ciated value. In the case of a specificallyscheduled bottle, the company will payup to 150 percent of the stated limit.Typically, the value is derived fromrecent auction or retail sales data.
At the time of a loss, it is importantthat you be able to present your lossto the insurance company. Properrecord keeping of your inventory isparamount. A number of inventorymanagement tools are available totrack your collection.
Please contact our wine insuranceexpert, Kurt Thoennessen, for furtherinformation.
S T O R M Y W E AT H E R
It had been more than adecade since such a summerstorm had hit the EastCoast. The high winds causeddowned trees and widespreadpower outage. The weatherforecast called for typicalsummer heat, and the powercompany was predicting itwould be multiple days beforethe power was restored.
Carter worried about hiswine collection. With thecooler inoperable, how wouldhis wine react? Chanceswere excellent that it wouldspoil. He had bought wineinsurance through Chubb forsuch an event, but was not asconcerned with the financialloss as the emotion over losing a collection that tookso much effort to assemble. Acall to Ericson put our claimsteam in action, and a portablegenerator was operatingwithin four hours. It is impor-tant to be well covered, butequally important to be asso-ciated with the right broker.
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About Ericson Insurance Services Ericson is a 75-year-old insurance firm dedicated to satisfying the personal insurance needs of the high networth individual. With offices in Connecticut and New York City, Ericson provides insurance in all 50 statesthrough 12 reputable carriers. The firm is comprised of 22 licensed insurance advisors who are specially trainedto understand the needs of the affluent consumer. They are extremely engaged in the industry, as evidencedby their principals’ activities in 2009, which included testifying in front of both chambers of Congress andmaking multiple appearances on nationally televised programs.
How to reach an Ericson advisorPlease call our office at 646.703.0411 or emailSpencer at [email protected].
Left to right: Spencer M. Houldin,Kurt Thoennessen, Karen Russell and Peter Houldin
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THE EVOLUTION OF FINANCIAL INTELLIGENCE
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About the Worth Leading Wealth AdvisorsThe Worth Leading Wealth Advisor admittance process is based on, but not limited to, the Advisor’s experience, education, fiduciary status, compliance record, wealth management services,methods of compensation and scope of current business. In order to be considered for the Worth Leading Wealth Advisors Program, financial professionals must be willing to provide completeand full disclosure to investors so that independent analysts from Paladin Registry can thoroughly screen and evaluate their credentials, ethics and business practices. Once admitted,Advisors pay a fee to be included. Investors and potential investors are solely responsible for the decision to select particular Advisors.
Spencer M. HouldinPresident
Ericson Insurance Services 1350 Avenue of the Americas
