If you’re like most people, you couldn’t afford to replace your home if it were destroyed by fire or your car after a serious accident. That’s why you purchase insurance on these items, both of which are likely to be your most valuable possessions. However, even those less expensive things you own—computers, smartphones, a high-end road bike— can and should be insured for loss, theft, and damage.
That same reasoning should apply to your watch, especially if it’s considered to be a “luxury” timepiece. In other words, if you are fortunate enough to own a Rolex Pearlmaster 39, but could not afford to replace it, you’ll want to make sure it’s protected with watch insurance.
Keep in mind that watch and jewelry insurance, when it’s part of a typical homeowner’s policy, will provide coverage only up to a specific limit for each item. In most cases, that limit would come up woefully short of the value of a Rolex or Patek Philippe.
Fortunately, you do have options, so there’s no need to place your luxury watch in a home safe or your bank’s safe deposit box and leave it there. Here are a few ideas to consider:
How to insure a watch
If you already have home and contents coverage, look over the policy thoroughly to determine what is covered and for how much. For most owners of luxury watches, along with those who have vintage and limited-edition models, standard insurance will not be enough to allow you to recover the full value of a lost, stolen, or damaged watch. That leaves you with two possible options:
- Add your watch to an existing policy
- Jewelry and watch insurance
- How much can you expect to pay for jewelry and watch insurance?
- Protect your watch, so you never have to use your watch insurance
Add your watch to an existing policy
Contact the company that carries your homeowner’s policy and ask them if they can itemize your luxury watches, so they are covered under the personal possessions section of your policy. With the majority of providers, you’ll be required to provide proof of ownership and a certificate of valuation.
This option is the simpler of the two since you’re merely adding to a policy you already have, plus it keeps all of your coverages under one policy. One disadvantage is that most homeowner’s policies will only reimburse the value of the watch at the time it was stolen or damaged, instead of the replacement value. Also, you’ll need to confirm with your insurer that your watch is covered for a loss when you are away from home.
How much can you expect to pay for jewelry and watch insurance
When it comes to what is covered by homeowners insurance, many people struggle with choosing the policy that suits them best for they are often not sure what the policies cover. There are two main types of homeowners’ insurance policies, named peril and open peril.
Named Peril policies cover the damages caused by disasters listed in the policy contract. Open peril policies, on the other hand, cover everything except the perils excluded in the policy.
So, what will homeowners insurance cover and what will it not? Theft, weather, and fire are the most common perils included in homeowners’ insurance policies. However, the policy will not cover all weather related damages or any loss due to theft.
Protect your watch, so you never have to use your watch insurance
You purchase home, auto, and life insurance, hoping you’ll never need to use it—especially that life insurance!
The same philosophy works with luxury watch insurance, so here are a few tips and reminders to help you keep your Rolex safe:
- Invest in a vault or safe | If someone breaks into your home, they won’t take your beloved Rolex if it’s locked securely in a safe or vault. And, if you protect your watch this way, you’ll get the bonus of a lower watch insurance premium.
- Save your receipts and certificates | You must keep proof of your purchase and your ownership when you buy an expensive watch. You’ll find it difficult to obtain coverage for your Rolex if you can’t prove that you own it. Also, you’ll need those receipts and certificates if you need repairs during the warranty period.
- Get your watch appraised regularly | What you paid for your watch initially could become irrelevant quickly. By getting a valuation periodically, you will always know where you stand
The secret to enjoying your Rolex, or any expensive watch, is to insure it through a reputable watch insurance specialist and have it appraised regularly. Knowing that it’s adequately protected will give you the peace-of-mind to wear it as it was intended instead of keeping it hidden away. Talk to one of White Cloud Insurance‘s experts today, at whitecloudinsurance.com.