Whether you are a watch enthusiast with an extensive collection or simply have a timepiece you are looking to protect, insuring your watch(es) is an important consideration. As demand for luxury watches continues to grow, so do concerns about protecting these timepieces. Luxury watches occupy a unique position for most owners as they often provide both significant sentimental value as well as investment value. Protecting your timepiece, therefore, is certainly worth examining. In the following article, we will break down some of the key areas of concern around luxury watches, why you should consider insuring them, as well as what you need to be aware of when insuring a luxury watch.
Why Insuring A Luxury Watch Is Important
Luxury watches are similar to jewelry in so far as they often carry significant sentimental value as well as monetary value. However, unlike jewelry, their complicated construction (movement), the design to be taken on and off easily, and their attractiveness all leave them susceptible to damage, theft, and loss.
- Luxury watches often have a highly complicated inner working (the movement) which can easily become damaged or broken. Repairs to luxury watches, however, are not inexpensive and with many rare timepieces no longer being in production, repair costs can quickly stack up.
- Protecting against theft is another important consideration when owning a luxury timepiece. Watches are often a popular choice for thieves as they are easily identifiable, are easily sold through networks of used watch dealers, and can collect a handsome sum. Registering your watch with databases such as The Watch Register and assuring that you have the proper insurance coverage for your watch are easy steps to take in protecting your timepiece.
- The risk of losing your watch, unfortunately is another real concern, particularly amongst those that travel. With watches designed to be taken on an off, the opportunity to simply forget to put it back on, or lose it in transition is a very real risk. Areas like airport security significantly increase the risk of losing your timepiece…
- Importantly, many luxury watches increase in value overtime with valuations far exceeding the original purchase price. It is essential therefore to not only have your watch(s) valued but also appropriately insured.
“For any watch collector, they need to talk to their insurance agent to see what their insurance policy is covering. Often the market value of luxury watches may be in excess of what they originally paid for the watch.” Justin Hayward
Will Homeowners Insurance Cover My Watch Collection?
One common misconception that we often see at Deland Gibson Insurance is the assumption that homeowners insurance will cover items like luxury watches. Unfortunately, this is only partially true. Given that the value of many luxury watches often exceeds price tags of $2,000, your standard homeowner’s insurance policy will not cover the replacement cost. Furthermore, if you have multiple luxury watches in your collection the need to add specialized supplemental coverage to protect them increases.
How Much Is Watch Insurance?
The cost of insurance for your watch, or watch collection, depends on the policy form, and the value of your watch or collection. Companies have different policy forms that have subtle language changes that can mean a big difference in the event of a claim. It is important to connect with a Deland, Gibson representative to discuss what policy is the best coverage fit at the best price.
How Do I Insure My Watch?
This process depends a lot on what value you need to insure. The most common way is to “schedule” your watch onto your homeowners, renters, or condo insurance policy. Insurance companies have various ways of doing this, and their coverage can differ. Other companies have a separate policy for the watch or watch collection, this can list each watch individually or it can insure the total value for the collection with a per-item value that matches the most expensive item. It is important to discuss the options and optimal setup with your Deland Gibson representative. The cost of insurance for each type of policy arrangement will vary.
“You need specialized coverage for these appreciating items and you need to make sure you have the right policy for them…This is an area where you really need specialized insurance.“ Chip Gibson, CEO, Deland, Gibson
What Does Watch Insurance Cover?
It covers the repair or replacement of your watch when there is a covered cause of loss. Companies will handle the claim process differently with their specific policy language.
About Deland, Gibson Insurance:
Established in 1900, Deland, Gibson is a Massachusetts insurance agency that has thrived working as a trusted advisor for its client base. It has long been the goal to maintain Deland, Gibson as a family-run business. Deland, Gibson Insurance, originally a generalist agent, has evolved and adapted into a top risk advisor and insurance manager. Deland, Gibson now has locations in Wellesley, Dennis Port, and Franklin, MA. With over $80,000,000 of written premiums, the agency looks to continue fulfilling its mission as a client advocate Providing Peace of Mind Through Proactive Service.
Deland, Gibson Brothers of Risk Podcast
Listen to our podcast Are You Smarter Than A Horologist? where we discuss the luxury watch market, why the demand for luxury watches is growing, and how to protect your collection.
Link to podcast: