The Ultimate Guide to Watch Insurance

Whether it’s a vintage Rolex, a limited-edition Omega, or a custom-made Patek Philippe, your luxury watch is a hefty investment, a legacy, and perhaps even an heirloom. What happens if it’s damaged, lost, or stolen? That would be a nightmare.

According to the Watch Register, over USD 1.9 billion worth of watches worldwide were stolen last 2023. That's more than 100,000 watches all across the world.

That's why it's important to have your watch insured. You might think your homeowner's or renter’s insurance has you covered. However, with limits on claims and exclusions, these standard policies rarely provide the full protection that luxury timepieces deserve.

This guide is here to reveal why specialized watch insurance is your ultimate defense against financial loss.

What is Watch Insurance?

Watch insurance is a specialized coverage designed to protect valuable timepieces from various risks. It ensures that your watch is financially safeguarded against theft, accidental damage, loss, and other potential hazards. Given the high value and rarity of luxury watches, this insurance helps cover repair or replacement costs.

How to Insure a Watch

Watch insurance works by providing financial protection for your timepiece in the event of theft, loss, damage, or other covered risks. Here’s how to do it:

1. Get a watch appraisal for insurance. 

The first step is usually getting your watch appraised. An appraisal from a professional jeweler or watch specialist establishes the value of the watch, which the insurance policy will use to determine your coverage amount. It’s important to update this appraisal periodically, especially if the watch appreciates in value.

2. Choose a policy type.

You can either add your watch to your existing homeowner’s or renter’s insurance as a rider (for basic coverage) or opt for a standalone insurance for watches specifically. Standalone policies typically offer more comprehensive coverage and higher payout limits.

3. Select coverage options.

Watch insurance policies generally cover many scenarios. We will discuss that in detail later in the article in the section "Types of Watch Insurance Coverage."

4. Pay your premium.

The insurance company will charge a premium based on factors such as the value of your watch, the level of coverage, your location, and how often you wear it. Higher-value watches will naturally have higher premiums. You can usually choose between various paying modes, schedules, and methods.

5. Understand deductibles.

A deductible is the amount you’re responsible for paying out-of-pocket before the insurance coverage kicks in. Policies with higher deductibles generally have lower premiums and vice versa. For example, if your policy has a $500 deductible and your watch is damaged, you’ll pay the first $500 of the repair or replacement, and the insurer covers the rest.

6. File a Claim

If something happens to your watch—like it’s stolen, lost, or damaged—you can file a claim with your insurance company. The process usually involves:

• Providing details of the incident
• Submitting documentation like the appraisal, proof of ownership, and police reports
• Having the insurance company assess the claim

Once approved, the insurance company will either pay for repairs, replace the watch, or provide a payout equivalent to the insured value, depending on the policy and the situation.

7. Coverage Limits and Exclusions

It’s important to review the policy to understand any exclusions such as normal wear and tear, intentional damage, and unattended loss. 

8. Renew and Update the Policy

Watch insurance policies typically renew annually, and it’s essential to update your coverage if you acquire new watches or the value of your existing watches changes. Keeping the policy current ensures that you’re fully covered in case of future incidents.

Reasons to Insure Your Watch Today

If you're a collector or connoisseur of luxury watches---heck, if you own a luxury watch---it's probably best to insure it. It's the smart move!

1. Protect Your Investment

Watches, especially luxury brands like Rolex, Patek Philippe, and Omega, are more than just accessories—they are significant financial investments. These pieces often appreciate over time. Watch insurance ensures that in case of loss, theft, or damage, you don’t lose the monetary worth of your investment. Replacing or repairing an expensive watch can be costly, and insurance helps cover that.

2. Coverage Beyond Standard Insurance

Many assume that their homeowners' or renters' insurance will cover personal items, but these policies often have strict limits for valuable items. Without dedicated watch insurance, you might not receive adequate compensation to replace a high-end timepiece. Standalone watch insurance provides comprehensive coverage tailored to the value of your watch.

3. Peace of Mind

Wearing a luxury watch daily or taking it on trips while wearing it can be risky without protection. Watch insurance offers peace of mind, allowing you to wear and enjoy your watch without constantly worrying about damage, theft, or loss. 

4. Protection from Everyday Risks

Accidents happen—whether it’s dropping your watch, water damage, or getting it scratched. Watch insurance covers these everyday risks that could significantly devalue your timepiece or lead to expensive repairs. It's a safeguard against the unpredictability of life.

Types of Watch Insurance Coverage

There are several watch insurance coverage options, each designed to protect your timepiece from different risks. 

1. Theft Coverage

• Compensates you if your watch is stolen whether from your home, a hotel, or while traveling. In the event of theft, most policies require you to provide a police report and proof of ownership before they reimburse you for the value of the watch.

2. Accidental Damage Coverage

• Covers damage caused by accidents, such as dropping the watch, water exposure, or scratching the face. This type of coverage is essential for luxury or delicate watches that may require expensive repairs if damaged.

3. Loss Coverage

• Offers financial compensation if your watch is lost or misplaced. This includes situations where you can’t determine how or where the watch was lost. Policies often cover what’s called "mysterious disappearance," meaning even if the circumstances are unclear, you can still file a claim.

4. Worldwide Coverage

• Extends your insurance protection across the globe, ensuring that your watch is covered no matter where you are. This is particularly useful for frequent travelers who risk theft, loss, or damage while on the move.

5. Natural Disaster Coverage

• Covers damage caused by natural disasters such as floods, fires, earthquakes, or hurricanes. While most policies cover natural disasters, it's important to check specifics as some may exclude certain types of events.

6. Agreed Value vs. Replacement Cost Coverage

• Both you and the insurer agree on the value of the watch at the time you insure it. In case of loss or damage, you’ll be paid the agreed amount, regardless of current market value. This coverage reimburses you for the cost of replacing your watch with a similar model based on the current market price, which could be higher or lower than the original value.

7. Vintage or Collector’s Watch Coverage

• Specialized coverage tailored for antique, rare, or collectible watches, which may have unique risks and higher values. Policies for vintage watches often include protection against value fluctuations and inflation, ensuring you’re compensated fairly as the watch appreciates.

8. Flood and Water Damage Coverage

• Covers damages caused by water including unexpected exposure to extreme water pressure or flooding even if the watch is water-resistant. This type of coverage is essential for water-resistant luxury watches exposed to conditions beyond their rated water-resistance tolerance.

9. Pair or Set Coverage

• If you own a set of matching watches (e.g., his-and-hers watches) and one is lost or damaged, this coverage compensates you not only for the lost watch but also for the diminished value of the remaining piece. This is important for collectors who value their watch as part of a set, rather than just individual items.

10. Excess Coverage for Home Insurance

• If you’ve already insured your watch through a homeowner’s or renter’s policy but need additional protection for higher-value timepieces, excess coverage provides an extra layer of security. It supplements your standard home insurance, offering higher limits and more comprehensive protection specific to your watch.

Not Covered by Watch Insurance

While watch insurance provides valuable protection, there are certain exclusions and limitations that policyholders should be aware of. Here’s a breakdown of what is typically not covered by watch insurance:

1. Wear and Tear

• Regular wear and tear from daily use, such as scratches on the case, worn straps, or fading, is usually not covered. Insurance is designed to protect against unexpected damage rather than normal aging.

2. Intentional Damage

• Damage caused intentionally or through reckless behavior is not covered. This includes scenarios where the watch is damaged out of a furious reaction or negligence.

3. Mechanical Failure

• Issues arising from mechanical defects or malfunctions that are not the result of an accident typically aren’t covered. Regular maintenance and repairs should be handled separately.

4. Loss Due to Negligence

• If the loss of your watch is due to negligence (e.g., leaving it unattended in a public place or in an unlocked vehicle), the insurer may deny your claim.

5. Theft Without Proof

• If your watch is stolen, you usually need to provide a police report or evidence of the theft. Claims may be denied if proper documentation is not submitted.

6. Items Not Specified in the Policy

• Only the watches specifically listed and insured in the policy are covered. Any additional watches acquired later may require separate policies or riders.

7. Loss During Unauthorized Use

• If someone else has your watch (e.g., a friend or repair shop) and it is lost or stolen, claims may be denied if you did not authorize that person to have the watch.

8. Cosmetic Damage

• Some policies may exclude coverage for cosmetic issues that do not affect the watch's functionality such as minor scratches or changes in appearance.

9. Exclusions Related to Specific Risks

• Policies often have exclusions for specific risks such as war, terrorism, or natural disasters unless explicitly included in the coverage.

10. Warranty Issues

• Any repairs or issues covered under the manufacturer's warranty typically fall outside the scope of watch insurance.

11. Loss During a Contest or Gambling

• Watches lost during gambling activities or contests may not be covered under most policies.

12. General Liability

• Insurance does not cover general liability claims that may arise if your watch causes harm to someone else or their property.

Do I Still Need Watch Insurance if I Have Homeowners or Renters Insurance?

Whether you need a watch insurance policy if you already have homeowners or renters insurance depends on several factors. Here’s a breakdown of considerations to help you decide:

1. Coverage Limits

• Homeowners/Renters Insurance: Most standard homeowners and renters insurance policies have limits on personal property coverage, often capping payouts for high-value items like jewelry or watches (typically between $1,000 and $2,500).
• Watch Insurance: A dedicated watch insurance policy often provides higher coverage limits specifically tailored for valuable timepieces.

2. Specific Coverage for Watches

• Homeowners/Renters Insurance: These policies usually cover theft and damage but may not provide specific protections for watches such as accidental damage or loss due to mysterious circumstances.
• Watch Insurance: Policies specifically designed for watches often include broader protections including accidental damage, wear and tear, and global coverage.

3. Higher Premiums for High-Value Items

• Homeowners/Renters Insurance: If you add your watch as a scheduled item (a rider) to your existing policy, your premiums may increase. However, the payout limit may still not match the watch's true value.
• Watch Insurance: A dedicated policy might be more cost-effective for high-value watches, providing adequate coverage without compromising other areas of your homeowners or renters insurance.

4. Claims Process

• Homeowners/Renters Insurance: Filing a claim through your homeowners or renters insurance can be more complicated, especially if the coverage limits are exceeded or if you need to document the loss in detail.
• Watch Insurance: Claims are usually more straightforward with specialized watch insurance as insurers are experienced in handling watch-specific incidents.

5. Peace of Mind

• Homeowners/Renters Insurance: While it offers basic protection, it may not provide peace of mind for watch owners who worry about day-to-day risks.
• Watch Insurance: Dedicated policies allow you to enjoy your timepieces without the constant worry of potential loss or damage.

Types of Watches That Need Insurance

Certain types of watches are especially valuable. Thus, they need to be insured to protect against loss, theft, or damage. Tudor, Omega, Rolex insurance---you will need it.

1. Luxury Watches

• Examples: Rolex, Patek Philippe, Audemars Piguet, Omega, and Cartier

2. Collector’s or Vintage Watches

• Examples: Vintage Rolex Submariners, early Patek Philippe models, and rare Omega Speedmasters

3. Limited Edition Watches

• Examples: Omega Speedmaster “Snoopy Award,” TAG Heuer Monaco 50th Anniversary Edition, or Audemars Piguet Royal Oak Offshore Limited Editions

4. Custom or Bespoke Watches

• Examples: Watches with custom dials, engravings, or precious stones, such as custom diamond-encrusted Rolex or Patek Philippe watches

5. Heirloom Watches

• Examples: Watches passed down through generations, often from luxury brands like Patek Philippe or Vacheron Constantin

6. Smartwatches (High-End Models)

• Examples: TAG Heuer Connected, Montblanc Summit, and Apple Watch Hermes Edition

7. Watches with Precious Materials

• Examples: Watches made with gold, platinum, diamonds, or other gemstones such as the Rolex Day-Date or Hublot Big Bang with diamond-encrusted cases

8. Professional and Tool Watches

• Examples: Omega Seamaster (used by divers), Rolex GMT-Master (used by pilots), and Breitling Navitimer (used by aviators)

9. High-End Fashion Watches

• Examples: Watches from brands like Chanel, Gucci, or Louis Vuitton

10. Antique Watches

• Examples: 19th or early 20th-century pocket watches, early Rolex Oysters, and vintage Cartier Tank watches

Best Watch Insurance Companies of 2024

When looking for the best watch insurance companies of 2024, there are a few key players known for offering specialized coverage for luxury timepieces. Here are our recommended top watch insurance providers:

1. Jewelers Mutual Insurance Group

• Jewelers Mutual is a highly trusted insurer for jewelry and watches. They offer comprehensive watch insurance with coverage for theft, loss, accidental damage, and mysterious disappearance.
• Key Features:
  • Covers accidental damage and loss
  • Worldwide coverage for travel
  • No deductibles in many cases
• Best for: Watch collectors or owners of high-value luxury watches

2. Chubb Insurance

• Chubb is known for offering high-net-worth insurance products, including specialized coverage for luxury watches and jewelry. They provide comprehensive coverage for high-value items.
• Key Features:
  • Agreed value coverage 
  • Coverage for new purchases automatically up to a certain limit
  • Options for inflation protection, which adjusts the value of your watch over time
• Best for: Owners of luxury and vintage watches who want agreed value and inflation protection

3. Lavalier Personal Jewelry Insurance

• Lavalier offers personalized insurance for luxury watches and jewelry, providing worldwide coverage for theft, accidental damage, and loss. They are known for their flexible policies and affordable pricing.
• Key Features:
  • Coverage for loss, theft, and damage
  • Worldwide protection
  • Deductible options to lower premiums
• Best for: People looking for affordable premiums and flexible coverage options

4. BriteCo

• BriteCo is an innovative insurance company that specializes in fast and easy online insurance for watches and jewelry. Their policies are designed to be affordable and comprehensive with options for both modern and vintage watches.
• Key Features:
  • Full coverage for accidental damage, loss, and theft
  • Instant quotes and coverage in minutes
  • Replacement value protection
• Best for: Tech-savvy individuals who prefer managing insurance online with quick and affordable options

5. Hiscox Insurance

• Hiscox is a global insurer known for its specialty insurance products. They offer personalized coverage for high-value watches, focusing on flexibility, coverage, and customer service.
• Key Features:
  • Customized policies for high-value watches.
  • Coverage for theft, loss, and accidental damage
  • Worldwide protection with options for covering specific risks
• Best for: Collectors or owners of rare or bespoke timepieces

6. AXA Art Insurance

• AXA Art specializes in insuring luxury items like watches, fine art, and collectibles. They offer comprehensive policies tailored to the specific needs of watch owners.
• Key Features:
  • Customizable coverage for luxury watches and collectibles
  • Worldwide coverage with high-value protection
  • Expertise in rare and vintage items, ensuring appropriate valuations
• Best for: Owners of antique or rare watches who need specialized coverage

7. AIG Private Client Group

• AIG Private Client Group offers premium insurance for high-net-worth individuals including tailored policies for their luxury and vintage watches. They provide comprehensive global protection and excellent claims support.
• Key Features
  • Worldwide coverage for theft, loss, and damage
  • Agreed value policies to ensure full replacement cost
  • Automatic coverage for newly purchased items within certain limits
• Best for: High-net-worth individuals with extensive watch collections or rare timepieces

8. Zurich Private Clients

• Zurich offers specialized insurance solutions for luxury items like watches and jewelry. They are known for their detailed coverage and excellent claims process.
• Key Features:
  • Comprehensive coverage for luxury watches
  • Global protection with optional inflation adjustment
  • Policies can be tailored to individual needs
• Best for: Owners of luxury and limited-edition watches looking for global protection and excellent customer service

9. GemShield

• GemShield specializes in jewelry and watch insurance with reasonably priced and flexible coverage options. 
• Key Features:
  • Covers accidental damage, loss, and theft
  • Flexible deductible options
  • Worldwide coverage included in standard policies
• Best For: Those seeking a balance between affordability and comprehensive protection

10. Perfect Circle Insurance by Jewelers Mutual

• Perfect Circle is an offshoot of Jewelers Mutual, offering customizable coverage plans for watches and jewelry. They provide robust coverage for accidents, loss, and theft.
• Key Features:
  • Coverage for loss, theft, and accidental damage
  • Affordable premiums with customizable deductibles
  • Policies specifically tailored for valuable watches
• Best For: Luxury watch owners looking for specialized, flexible, and reasonably priced insurance

How Much is Watch Insurance

The cost of watch insurance varies depending on several factors. Let's get a breakdown of what influences the price of watch insurance and how much you can expect to pay:

1. Average Cost of Watch Insurance

• Watch insurance typically costs between 1% to 2% of the watch's appraised value per year.
  • Example: If your watch is worth $10,000, your annual premium would likely be between $100 to $200.
  • For a $50,000 watch, expect to pay between $500 to $1,000 per year.

2. Factors That Affect Watch Insurance Cost

a. Watch Value: The higher the appraised value of the watch, the more you'll pay for insurance. 

b. Type of Coverage: Comprehensive coverage that includes accidental damage, theft, loss, and mysterious disappearance usually costs more than basic policies that only cover theft or damage.

c. Geographic Location: Your location can influence your premiums. If you live in an area with a high crime rate or a higher risk of theft, the cost of insurance will likely be higher. Similarly, global coverage for traveling abroad may increase premiums.

d. Deductible: Policies with higher deductibles tend to have lower premiums while those with lower or no deductibles may have higher monthly or annual costs.

e. Frequency of Use: If you wear your watch frequently, especially for travel or active sports, you may pay a bit more since the likelihood of loss or damage increases.

f. Type of Watch: The material and complexity of your watch (e.g., diamond-encrusted, custom-made, or vintage watches) can impact the price. Watches with precious metals or stones, or those that are hard to replace, often result in higher premiums.

3. Sample Premium Estimates

• Entry-Level Luxury Watch (e.g., Omega Seamaster worth $5,000)
  • Estimated annual premium: $50 to $100
• High-End Luxury Watch (e.g., Rolex Submariner worth $15,000)
  • Estimated annual premium: $150 to $300
• Rare or Limited Edition Watch (e.g., Patek Philippe Nautilus worth $100,000)
  • Estimated annual premium: $1,000 to $2,000
• Collector's Watch (e.g., Vintage Rolex Daytona worth $250,000)
  • Estimated annual premium: $2,500 to $5,000

4. Policy Add-Ons and Special Coverage

• Some insurers offer add-ons that can raise the cost but provide more comprehensive protection. Examples include:
  • Global coverage: If you frequently travel with your watch, this may increase your premium slightly.
  • Accidental damage: Some insurers charge extra to cover damage from accidents.
  • Wear and tear: If the policy covers wear and tear (such as scratches or strap wear), this may also add to the premium.

5. How to Reduce the Cost of Watch Insurance

• Increase the deductible: A higher deductible can lower your premium, but you’ll pay more out of pocket if a claim is made.
• Bundle insurance: If you already have homeowners or renters insurance, some companies offer discounts for bundling your watch coverage with other policies.
• Install a security system: Installing a home security system can reduce premiums, especially for high-value watches.

Conclusion

Watch insurance is a necessity for anyone who values their timepiece. Not all insurance policies are created equal. Customizing your coverage to match your watch’s unique value will give you peace of mind. With the right insurer, you’re securing the future of a treasured timepiece that could hold even more value as the years pass.