How To Insure Your Luxury Watch

There’s a lot to think about when purchasing a luxury watch; one of the most important is insurance. Yes, watches help us identify the time and date, but with brands such as Patek Philippe, Rolex, and Audemars Piguet, a watch can mean and do so much more. 

Luxury watches are great to keep as family heirlooms, passing them on from generation to generation. It’s best to have insurance for your luxury watch to ensure that your huge investment doesn’t go down the drain in an unfortunate event.

Today’s post offers you the best advice on ensuring your luxury watch and all other pieces you might own.

Why do luxury watches need cover? 

Think about Rolex, Patek Philippe, Blancpain, Ulysse Nardin, Jaeger-LeCoultre, Omega, and many others. They stand out from the crowd every time, no matter the time or location. That’s the power of a luxury watch. Luxury watches are not like regular watches. These items are eye-catching, very easy to sell, and difficult to trace when lost. These are a few reasons thieves have taken a liking to these timepieces.

With thieves having a high demand for luxury watches, it has become imperative for all owners to find ways of keeping their assets safe and secure. This is where luxury watch insurance comes in. 

Assess your insurance needs

To know the best insurance you should go in for, it is critical to look at the value of your watch. When you value your watch as a first step, it enables you to adequately assess whether or not a specific insurance package will suit you better.

Luxury watches you use daily might require a higher, more comprehensive cover than pieces worn once in a while. Watches used for sporting activities such as diving or snorkelling have a high risk of experiencing damage and will need an additional insurance cover that caters to that. 

Consider a personal possessions policy or self-insurance

Many of us have home or tenant insurance policies that might not offer enough cover for our luxury items. Another great route one can take in such an instance is to discuss a personal possessions policy with your insurance provider. 

These policies usually cover items with more value than a typical insurance policy. The best thing is insurance companies can add them to your existing policy; thus, you won’t have to seek a new insurance company. It is good to note, however, that sometimes, the additional coverage terms are limited, so there might be some exclusions that won’t be ideal for luxury watches or luxury item collections. 

Another common way to insure one valuable possession, like a luxury watch, is self-insuring. Self-insurance is a straightforward process where you set money aside in a separate account to be used if your luxury watch is stolen or missing. 

Self-insurance is common but isn’t considered an ideal option for everyone. This requires you to amass enough capital in your designated account to cover anything from theft to damage. 

Specialty insurers for luxury watches

This is the best option for many luxury watch owners. Engaging a specialty insurer focused specifically on luxury watch insurance is great, especially when dealing with a large and highly valuable collection. This is the best and most secure insurance option as it guarantees coverage on stolen or lost luxury watches over a long period. 

Review your home or tenant insurance policy

Our last option, which is also very common, is to consider your tenant or home insurance policy. Review your policy to know whether or not luxury items are covered. Depending on the type of policy, you might find out that your home insurance offers enough cover for an entry-level luxury watch. 

It is good to thoroughly review your policy to determine if the insurance covers everything from theft to disasters like fires. Some policies might cover your watch being stolen but might not cover damage caused by a house fire. Knowing what is covered will help you decide on additional cover to ensure total safety and security. 

Does servicing affect insurance coverage?

One question many luxury watch owners ask is whether or not regular servicing can affect their insurance coverage. Every luxury watch in existence requires servicing if you want all mechanisms to operate correctly. Also, servicing ensures that you maintain the manufacturer’s warranty. 

Servicing your luxury watch and finding an insurance cover can be tricky because, most often, the cost of replacing a luxury watch part can easily approach the overall value of the watch. With insurance, it is best to service your watch regularly as it helps reduce the likelihood of a claim and annual premiums: a great way to complement your insurance. 

Final notes

The main goal of insurance is to give you the freedom to choose any luxury brand you want, make your purchase, and feel comfortable knowing that no matter what happens, your heirloom will remain safe and secure. However, remember that no matter how valuable a watch is, it can never take the place of your life and how valuable it is. 


Sell your watch in four simple steps

Sell your watch hassle-free. Fill out our form to sell and get a quick valuation. We offer same-day payments for sellers ensuring a smooth, transparent transaction with no surprises.