Understanding Watch Insurance

What Is Watch Insurance?

Watch insurance is a type of specialized insurance that provides coverage for watches against unforeseen events such as theft, loss, accidental damage, and mysterious disappearance. These types of coverage are typically not included in standard homeowners or renters insurance policies. It is designed to protect the watch owner's investment, and give peace of mind knowing that their valuable watch is protected.

What Watches Can I Cover With Insurance?

Typically, watch insurance will cover a wide range of watches, including luxury and high-end watches, antique and vintage watches, and even some smartwatches. Popular brands that can be covered under watch insurance include Rolex, Patek Philippe, Omega, Audemars Piguet, Breitling, Cartier, Hublot, IWC, Jaeger-LeCoultre, and Panerai.

Is My Watch Worth Insuring?

Depending on the watch you own, it's typically recommended to have insurance to protect against unforeseen accidents. Watch insurance provides peace of mind in case your watch is broken, stolen, or lost.

Do I Still Need Watch Insurance If I Have Homeowners Or Renters?

Coverage for engagement or wedding rings under a homeowners or renters policy is typically very limited and very restrictive.

  • Accidental damage is often not covered and theft is covered up to a relatively low limit, such as $1,000.
  • Mysterious disappearance is the most common cause of jewelry loss (e.g. you left it at the hotel or at the restaurant) and this is very unlikely to be covered under a homeowners policy
  • Deductible limitations are likely to apply and may be subject to the same deductible as your overall homeowners or renters policy (which is often at least $1,000), meaning that in a case of loss or damage, your actual protection may be well below the cost to replace or repair your jewelry.

Other key drawbacks include the fact that any claims can affect your homeowner premiums and there is limited control over the repair or replacement service. Specialized jewelry insurance is important to ensure you are protected if your valuable items are lost or stolen.

What Does Watch Insurance Cover?

Watch insurance typically offers all-risk protection for watches. This insurance covers a range of losses, including:

  • Accidental damage: If you accidentally damage your watch through drops, scratches, or other accidents, you will be covered.
  • Theft: If your watch is stolen, watch insurance policies can provide protection. Watches are often targeted by thieves making it important to have insurance coverage.
  • Loss & mysterious disappearance: If you lost your watch, an insurance policy can cover the loss.
  • Fire, flood, and natural disasters: In the event that your watch is damaged in a fire, flood, or natural disaster, watch insurance policies will provide coverage.

It's important to note that coverage and exclusions may vary by policy and insurer, so it is important to review the details of a specific policy to understand what is covered.

What Doesn't Watch Insurance Cover?

Watch insurance typically excludes coverage for normal wear and tear, intentional acts, lack of maintenance, fraud, government seizure, and war related damage. It's important to review the policy for specific exclusions.

How Much Does Watch Insurance Cost?

The cost of insuring your watch is typically 1-2% of the value of the item per year. For example, insuring a watch valued at $5,000 would cost approximately $50 per year, or only $4 per month. This means that protecting your valuable watch could be more affordable than you think, even less than the cost of a monthly cup of coffee.

Do I Need An Appraisal?

It depends on the insurance company and policy you choose. Some insurance companies may require an appraisal for watches above a certain value, while others may not require an appraisal at all. 

An appraisal is a document that certifies the value of your watch, which can be useful in determining the amount of coverage you need. It is usually done by a professional appraiser and will include information such as the brand, model, and details of the watch, as well as photographs and a description of its condition. If an appraisal is required, it is important to choose a reputable appraiser who is knowledgeable about your type of watch. 

It's always good to check with the insurer before purchasing the policy to find out their requirements.

Do I Need Watch Insurance If I Have A Warranty Plan?

Even if you have warranty protection for your watch, it's still a good idea to consider getting watch insurance. While a warranty provides protection from defects in materials or workmanship under normal use and may cover repairs or replacement of the watch, it may not cover other types of loss or damage such as accidental damage or theft.

On the other hand, watch insurance provides comprehensive protection for loss, damage, or theft of your insured watch, including accidental damage. It also usually covers replacement parts or repair costs and can give you peace of mind knowing that your valuable watch is protected against any unforeseen events.

If My Watch Has Gone Up In Value, Am I Covered?

It depends on the insurance policy you have. Some insurance policies may have a provision for automatic or scheduled increases in coverage, which means that the coverage will automatically increase if the value of the watch goes up. Other policies may require you to notify the insurance company of the increase in value and pay an additional premium in order to increase the coverage.

It's important to check your policy or contact your insurance company to find out if your policy has a provision for increasing coverage due to an increase in the value of your watch. If it does not have this provision, you may have to purchase a new policy to get the appropriate coverage for the current value of your watch.

What Is A Deductible?

A deductible is an amount that will be subtracted from any future claims payout (i.e. it is your contribution to the payout of the claim). In general, a lower deductible means a higher monthly premium and vice versa. With Oyster, our default deductible is $0 but we also offer different options in case you want to reduce your premium.

What Is A Premium?

The premium is the cost of your insurance policy. You pay this figure regardless of whether you file a claim or not, and unlike homeowners and renters insurance, your premium will not increase if you do need to file a claim.

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