What does watch insurance cover?
So maybe you just splurged on a Day-Date, your first big watch purchase, and you’ve never had to worry about protecting something so small, delicate, easy to lose, and expensive. Or maybe you’re a veteran watch collector and it has just occurred to you that sometimes bad things happen to good people and you should probably be prepared for the worst.
Either way, insuring what you care about can get pretty overwhelming. To most of us, insurance is the most daunting of them all.
When it comes to quotes, deductibles, blanket policies, claims, retail value vs. declared value, coverage eligibility, etc… it’s pretty easy to get lost in the mix. Before we do that lets take a few steps back.
Will my homeowners insurance cover my watch?
When dealing with insurance and watches, the first assumption most of us make is that homeowners insurance and renters insurance can be relied on to cover our hard earned assets.
If you think your watches are covered by an existing policy, read it thoroughly and evaluate whether or not you’re comfortable with that level of coverage. Standard homeowner’s policies often provide limited protection and frequently exclude accidental breakage and don’t favor fair market valuations.
If you’re dealing with a high end timepiece, in most situations, we would strongly advise seeking out a separate policy that is dedicated to your watch/collection.
Keep your coverage standards high
Above said, a better title for this article may have been “What SHOULD watch insurance cover?” because while there isn’t a standard across the industry, there is certainly a standard that you should aim for when seeking coverage for a high end watch or collection of watches.
If you are reading this, your main concern is probably what types of unfortunate events and occurrences will warrant you reimbursement or replacement from an insurer.
What to look for in your policy
A policy that we would consider acceptable or up to par should cover the following claims and losses:
- Accidental breakage
- Fire
- Lightning
- Water damage
- Mysterious disappearance
- Loss in transit
- Burglary
You want to make sure that your bases are covered in the case that something happens outside of your control.
Beyond losses and claims, what many watch owners fail to realize is that they should be getting covered for the declared value of their watch. Declared Value is the current fair market value of your item. It is the price that you would need to pay in order to replace it.
Why is declared value so important?
Let’s say you just bought a solid gold GMT Master and the following day the value of gold miraculously increases and the GMT Master sells out and becomes the hottest item on the secondary watch market.
What you possess is worth a fair amount more than what your receipt says, and if something were to happen to your asset, you want to make sure your insurer can replace it or will willingly give you compensation for its declared value. Otherwise you’re losing on your investment.
The key to getting the right amount of coverage on your watch is to find an insurer who has an idea of what they are dealing with. If you are looking for watch insurance and the agent you’re working with has never heard of an Audemars Piguet you’re probably in the wrong place!
