Wine Country Times

Recent wildfires have created problems for local growers, with insurance companies increasing policy costs and cancellations, but the California Senate is considering a bill to permit growers to receive coverage under the state’s FAIR Plan.

John Balletto, owner of Balletto Vineyards, recently spoke with KSRO about the effect the current insurance situation has had on his business, with some premiums increasing as much as 350% in the past four years. Balletto started the business in 1977, when the untimely death of his father left the 17-year-old Balletto giving up college plans to stay and help his mother with their five-acre farm, according to the company website.

“There was no warning, because our previous company just canceled our insurance,” Balletto told KSRO. “A lot of the companies, the insurance companies in the United States, are in the Midwest, and basically you get put into a computer program, and it’s Napa-Sonoma area, and so it comes out then, ‘wildfire danger,’ and what’s the risk, and they cancel.” 

They had no choice but to seek a new policy at a higher premium after receiving a 30-day policy cancelation notice, he said. Even though he considers the actual wildfire risk on his property to be very low, he is required to have the insurance by his lender.

“Economically, for us, it’s very, very difficult,” Balletto said. 

Balletto estimated that the monthly premiums for insuring the winery and other facilities in the vineyard are among the top four or five expenses for the vineyard, behind labor, utilities and loan payments.

“And now, it’s creeping up even higher,” he said. “And the problem is, there’s not a lot of choice out there for us business owners now in Sonoma or Napa counties as far as insurance.”

Balletto Vineyards even tried to cut some costs by raising their deductible, he said. However, insurance companies have upper limits, and some vineyard owners in the area are even considering self-insuring.