Watch Insurance 101: Getting your watch insured

Ari Pham
Ari Pham
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Luxury watches are an investment. Over time, watch collectors will begin to see the value of their timepieces rise incrementally. This means that you could suddenly find yourself in possession of some very valuable assets. Assets that you want to protect. So the question then begins to arise, ‘should I get my watch insured?’ Well, let’s talk about watch insurance, and what you need to know about it. 

What Is Watch Insurance? 

Watch insurance, or sometimes ‘jewelry insurance’, is a specific type of insurance designed to cover high value jewelry. Many watch owners operate under the false assumption that their homeowners insurance will cover the loss or damage of their watches. However, that is not the case always. Because of this, watch insurance allows you to insure the watch or watches specifically against any damage, loss, or theft. 

How Do I Insure My Watch? 

Watch insurance is relatively simple to acquire. Many insurance providers offer jewelry specific insurance plans that are designed to encompass high value items. There are also jewelry specific insurance providers available to collectors. While some homeowners insurance plans cover lower value items, higher ticket timepieces might not be covered. This is why watch insurance is a must. 

To insure your watch, you really only need a few things: 

  • Certificate of authenticity.
  • Bill of sale (if you have it).
  • Photos.
  • Documents of appraisal. 

The more documentation you have, the better. This allows you to get a proper quote on the insurance plan for each individual watch. In most cases, the cost of the watch insurance will be around $1 for every $100 of value annually. This means that a $10,000 watch will cost $100/year to insure on average. 

As of Sept 2020, Hodinkee introduced their insurance in collaboration with Chubb where you can insure your watch with your smartphone via an apps. Watch collectors are as surprised as skeptical of the process. We’ll see if watch collectors are comfortable with digitalising their watch insurance. Below is their Hodinkee x Chubb coverage cost table:

Chubb x Hodinkee insurance

Why Is Watch Insurance Important? 

Watch insurance is important because it gives you peace of mind. You never have to worry about taking a loss on the investment in the event of damage or theft. Watch insurance can cover reimbursement for the value of the watch, as well as reimbursement for repairs or replacement costs. These benefits can encompass the value of even the most high end watches. Watch insurance is great for those who: 

  • Own any high value watch or timepiece.
  • Travel often and want to protect their investment watches. Travel increases the risk of  watch theft significantly, and insurance can help reduce that damage. 
  • Own multiple high-value watches that could be a target for theft. Watches are often the target of thieves who are looking to turn a quick profit. Protect your watches with watch insurance. 
  • Own high-value watches that are difficult to replace, and the cost of repairs is steep. Many collector watches are limited run, and replacing them can be near impossible. That is why the cost of repairs can be so steep, and watch insurance helps cover that. 

Watch insurance can cover any luxury watch. Should you get insurance on a Rolex? You bet! You can easily acquire Omega watch insurance, Rolex insurance, no matter what, you can get it. So if you have to ask yourself, ‘should I get insurance on a Rolex’, or ‘should I get Omega insurance’? The answer is a resounding YES. 

How Will Your Insurance Company Pay If You Purchased a Pre-Owned Watch? 

Obtaining watch insurance for a pre-owned watch is only slightly more difficult than with a brand new watch. But don’t worry, this difference isn’t dramatic! All that needs to be done, is to prove the authenticity and value of the watch for the insurers. This means you should: 

  • Obtain a third party authentication certificate.
  • Obtain an appraisal for the watch value.
  • Take extensive photographs of the piece. 

Alongside your other documentation for the watch, these two documents will help the insurance company insure your watch. The appraisal certificates will be able to list any existing wear or damage that the insurance companies can take into consideration when they insure your pre-owned watch.

You may also interested in: A Guide to Storing Watches at Home Safely

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