Most wineries not insured for quake losses (w/video)

A premium on a policy to cover $4 million in inventory can cost $20,000 annually, said Joe Sucatre, vice president for Vantreo. Costs are tied to deductibles, which can range from 5 to 25 percent. A policy with a higher deductible costs less than one with a lower deductible.

The brokerage received six calls reporting damage since Sunday’s quake — and another six calls inquiring about coverage, he said. Insurance companies put a moratorium on selling new coverage for a week after a quake because of aftershocks related to the initial earthquake, Sucatre said.

One of those who elected to forgo earthquake coverage was Rene Schlatter, chief executive officer and president of Napa’s Starmont Winery and Vineyards, which suffered significant damage during the quake.

Schlatter cannot enter two of the three Starmont barrel rooms because barrels were tossed off their racks during the quake, blocking doors and entryways. He estimated that 80 to 90 percent of his 8,000 barrels were affected. About 3,000 of those barrels had wine, mostly 2013 chardonnay and pinot noir and bordeaux varietals, representing millions of dollars in inventory.

“We haven’t been able to assess the extent of the damage,” said Schlatter, who said he felt a small aftershock Monday. “We know we lost some wine.”

A structural engineer visited the Starmont property on Monday to gauge the facility’s integrity as Schlatter decides the best options to enter the barrel rooms and check inventory. In the meantime, Schlatter brought in portable cooling units to ensure the wine does not spoil. He also ordered a crane to move the barrels.

Starmont will absorb the loss because earthquake coverage was too expensive for a minimum deductible of 15 percent, Schlatter said. “I know a few people who don’t have it,” he said.

That includes B.R. Cohn Winery of Glen Ellen, which lost some of its 2013 vintage when its barrels fell out of their racks at a Napa storage facility. On Sunday, B.R. Cohn’s winemaker said the winery had lost up to half of the vintage, but owner Dan Cohn said Monday that only about 10 to 15 percent of the vintage is expected to be lost because half of the barrels were empty.

“The initial shock and awe is over in regard to the inventory,” Cohn said. “It looked worse than it really was. Only two of the really full racks were down.”

Cohn said his winery did not get earthquake insurance because of its cost. He said he has found other ways to mitigate risk in production and storage of the wine, such as housing wine at different facilities. “Fortunately, no one was injured. All we had was a little spilled wine,” he said.