How Does Watch Insurance Work? It Protects Your Most Valuable Timepieces
When luxury watches cost tens of thousands of dollars, that’s an investment that you want to protect. Jewelry insurance — particularly specialized coverage for luxury watches — can help you repair or replace your valuables if they are lost, stolen, or damaged.
What You Will Learn
How Watch Insurance Works
The first step in protecting your luxury watches (and avoiding the financial loss that can occur if your timepieces are uninsured) is to shop around for coverage and get quotes for premiums from reputable companies with good reviews.
Your policy cost will ultimately depend on the value of a single watch you want to insure or your entire watch collection, and an appraisal will be necessary to determine that value. Even if you still have your original sales receipt for your watch, indicating what you paid when it was purchased, it’s important to get your timepiece appraised when you want insurance coverage to reflect a current, accurate assessment of its worth. This is especially important for higher-value pieces, although, in some cases, providing a sales receipt may be sufficient if you’re insuring a lower-value watch rather than a luxury watch.
The Appraisal Process
When getting your watch appraised, you’ll want to work with a reputable source and/or jeweler. To begin the process, they will ask you to provide documentation of ownership, such as a receipt or previous appraisal. Usually, this can be done in person or online. If you submit paperwork online, you might be asked to provide additional photos and/or schedule a video consultation. Once the appraiser has everything they need, they will give you their professional advice regarding the worth of your piece and will send formal appraisal documents.
The appraised value not only helps determine what you will pay for watch insurance cost. But it also applies if you ever need to make a claim to help determine your watch’s market value and/or potential replacement cost, whether your coverage applies to a new, vintage, or appreciating watch or even if it’s a brand name like Patek Philippe, Audemars Piguet, Vacheron Constantin, Rolex, Omega, and Cartier.
Keep in mind that once your watch’s appraised, the number isn’t static. Jewelry and watch values fluctuate, so the appraised amount may also fluctuate.
What Does Watch Insurance Cost & What Does It Cover?
If you want to determine your watch or jewelry insurance cost, here’s a simple equation. Most jewelry insurance rates are 1–5% of your piece’s market value, per year.
For this price, watch insurance will typically cover:
With BriteCo, another benefit is that your watch is covered while you’re traveling anywhere in the world. In general, it’s always a good idea to check your policy contract for more details about what your specific insurance policy covers, regardless of insurance provider.
Making a Claim on Your Watch Insurance Policy
Once you’re covered, you can rest easy knowing that your luxury watches are protected in the event of any unfortunate accidents — but what happens if you really do face accidental damage, loss, or theft?
If you need to make a claim, what you’ll need to provide your insurer may differ according to specific company policies. With BriteCo, you can simply file a claim online, which generally takes less than five minutes. You’ll need to provide specific documentation and details, such as:
- Photos of the piece (if damaged)
- Details of loss, like a police report (if lost)
Other insurance companies may also ask you to provide your appraisal documentation and a detailed inventory of the item(s), including a description. However, BriteCo already saves these details in your customer profile, saving you this step.
Unlike many other forms of insurance, BriteCo customers pay zero deductibles for claims, meaning you’ll pay no out-of-pocket costs. This is not the case with every jewelry and watch insurer, as some provide varying levels of coverage with different deductible amounts.
For watches that need to be entirely replaced, the full replacement cost will be covered if the watch is insured for its full value, even if it’s a limited-edition model and has been discontinued. For watch repairs, the cost is likewise covered, and BriteCo will work with your preferred jeweler to repair it.
Additionally, unlike homeowners insurance, wherein making a claim can impact your policy and raise your insurance rates in the future, specialized jewelry insurance and watch insurance work differently where you aren’t automatically “dinged” for having a claim.
Suggested Read: How Much Is Watch Insurance?
Watch Insurance vs. Homeowners/Renters Insurance vs. Manufacturer Warranty
Some watch collectors may choose not to invest in specialized watch insurance but instead rely on their existing homeowners or renters policies for protection. Unfortunately, this does come with some downsides, including:
- Standard policies may provide limited coverage, typically only covering a few thousand dollars worth of repairs or replacement costs
- Deductibles will typically apply to any watch-related claims
- These policies do not cover all potential issues, such as loss or mysterious disappearance
Manufacturers’ warranties, meanwhile, are valuable but very different from watch insurance. They cover mechanical failures and manufacturing defects, whereas insurance covers loss, theft, accidental damage, and any unfortunate event that wouldn’t be attributed to normal wear and tear. (Damage is considered any accidental cosmetic damage or breakage to a piece, while normal wear and tear is not the result of any specific accident.) But you should also know jewelry insurance typically doesn’t cover intentional damage or extraneous circumstances, such as military combat.
BriteCo Coverage Options Can Protect All Your Valuable Items
When you’re shopping for the best protection for your high-value timepieces, you’ll find a range of options. In addition to BriteCo, other jewelry and watch insurers include Jewelers Mutual, GemShield, and Chubb. But here’s the thing: Insuring watches is incredibly easy with BriteCo, and you’ll get the most affordable rates as well as more comprehensive coverage.
BriteCo also offers convenient quote and claims processes, and you can generally be covered on the same day. Plus, watches aren’t the only valuable items you can insure through BriteCo; there are also options for engagement ring insurance, general jewelry insurance, and wedding insurance.
Interested in learning more? Get your watch insurance quote from BriteCo today.
Also Check:
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The Best Investment Watches for Collectors
How to Insure a Breitling Watch
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