Insuring your watch for the right value is important to ensure that you’re adequately covered in case of loss, theft, or damage. Here’s a step-by-step guide on how to insure your watch for the correct value:
- Research and Appraisal:
- Start by researching the current market value of your watch. Look at similar watches being sold online, at auction houses, or through reputable dealers.
- If your watch is rare, vintage, or a luxury brand, consider getting a professional appraisal from a certified watch appraiser or a reputable jeweller. An appraisal will provide an expert opinion on the value of your watch. This can be especially important for certain models which have a market value higher than its retail price such as Rolex Submariner, Rolex GMT-Master, Rolex Daytona, Audemars Piguet Royal Oak, Patek Philippe Nautilus. These are just an example selection of models whose value would exceed its retail price, in some cases, be worth 2-3 times or more.
- It cannot be stressed how important having your timepieces correctly valued. In the unfortunate event where something were to happen to your watch, the insurer would only have to pay you for the insured value. This could mean that there would be instances where you would not receive enough money to be able to purchase the same model.
- Choose the Right Insurance Type:
- There are two common options for insuring your watch:
- Homeowner’s or Renter’s Insurance: You can often add high-value items like watches to your existing homeowner’s or renter’s insurance policy as a “scheduled personal property.” This may cover a certain amount for jewelry and watches.
- Specialized Jewelry/Watch Insurance: This type of insurance is specifically designed for valuable items like watches. It often offers more comprehensive coverage and may have higher limits.
- There are two common options for insuring your watch:
- Document Your Watch:
- Take clear and detailed photos of your watch from different angles. These photos will help in proving the watch’s condition before any loss occurred.
- Bonus tip: try to take photos of the serial number (this can be easier said than done as different manufacturers and models have the serial number in different areas.)
- Keep any relevant receipts, certificates, or documentation that proves the authenticity and value of the watch.
- Provide Information to the Insurance Company:
- Contact your insurance company or agent and provide them with all the information you’ve gathered about the watch’s value, including photos, receipts, and appraisals.
- Be prepared to answer questions about the watch’s condition, provenance, and how you plan to use it (e.g., daily wear, special occasions, display only).
- Choose the Coverage Amount:
- Based on your research and appraisal, work with your insurance company to determine an appropriate coverage amount. This should be the amount it would cost to replace the watch with a similar one in case of loss.
- Be cautious not to overestimate or underestimate the value. Overestimating could lead to higher premiums, while underestimating could result in inadequate coverage.
- Review the Policy:
- Carefully review the insurance policy to understand the terms, conditions, and coverage limits.
- Check if the policy covers scenarios like loss, theft, accidental damage, and whether it offers worldwide coverage.
- Premiums and Deductibles:
- Understand the premium (the amount you pay for the insurance) and any deductibles (the amount you need to pay out of pocket before the insurance kicks in).
- Make sure the premiums are reasonable and fit within your budget.
- Regular Updates:
- Keep your insurance up-to-date. If the value of your watch changes significantly due to market fluctuations, consider getting a new appraisal and updating your insurance coverage accordingly.
- Additional things to note:
- In Canada, insurance products must be purchased from a licensed agent. Different provinces have different requirements, and not all products are available in every province. This differs from jurisdictions like the United States where insurance like watch and jewelry insurance can be purchased online or via an app like Hodinkee or Wax.
Remember that insuring valuable items like watches involves careful consideration, research, and communication with your insurance provider. It’s always a good idea to work with reputable insurance companies or agents who specialize in jewelry and watch insurance to ensure that you’re getting the right coverage for your valuable possession.