High-end luxury watches, especially limited editions can cost anywhere between $10,000 to $100,000, and even more. This is often more than most people pay for their car, which leads you to think “do I need insurance for my luxury watch?’.
The simple answer is yes, but it mostly depends on the value of your watch. Most standard home policies won’t cover your watch as many put a limit on stolen jewellery at $1,500–$5,000, which is far too small.
To protect your investment and keep your love for luxury watches alive, Precision Watches will cover everything watch owners need to know about cluxury watch insurance.
Precision Watches now offers dedicated luxury watch insurance through Wondercare for timepieces purchased through our showroom or online boutique. Wondercare was developed with the support of Kevin O’Leary and is designed specifically for high-value timepieces.
Why You Can't Rely on Standard Home Insurance
As a luxury watch owner or a collector of high-end time pieces, you can’t rely on standard home insurance when burglars break in and steal your collection. Why? Aren’t insurance providers supposed to cover the cost of every valuable stolen during a robbery?
Correct; however, most insurance policies put a limit of stolen items, which is often between $1,000 to $5,000. Even then, deductibles apply and filing this claim can affect how much you pay annually for home insurance.
Also, standard Home insurance policies don’t cover accidental damage such as dropping the watch. This is also problematic when you travel since your watch has no protection once it leaves your home.
So what’s the best option? Specialists watch insurance coverage.
What Specialist Watch Insurance Actually Covers
Before we proceed, note that specialist watch insurance is mostly best for high-value time pieces that can’t be covered by standard policies.
Many collectors choose specialist coverage designed specifically for high-value timepieces. If you choose such specialist watch insurance coverage, here are the three main benefits you can expect to enjoy:
1. Theft, Loss & Accidental Damage
The biggest concern with luxury watches is getting cornered and robbed or being in an unfortunate situation where the watch gets damaged. Regardless of the circumstances, specialised watch insurance offers different terms for either comprehensive or targeted protection.
These terms extend to accidental damage like accidental drops or impacts, and even mysterious disappearances. All these are overages available in standard homeowner policies, making specialised insurance coverage worthwhile.
2. Worldwide Coverage
As a high-profile individual, you’re always on the move, attending meetings and connecting on a global scale. Regardless of your location, specialised coverage guarantees that your watch is covered in case misfortune finds your timepiece.
This is unlike standard policies that are often fixed to a particular location and will not take liability if your watch gets stolen or damaged during a vacation or business trip.
3. Agreed Value Policies
Traditional policies apply depreciation, but specialist watch insurance is usually written on an agreed value basis. Essentially, a professional appraises the value of your watch, which lets you know a rough estimate of your payout, while combating disputes while filing a claim.
*Note: These benefits only depend on the coverage you choose. Feel free to visit our Wondercare for a full review of their policies and request a quote for your luxury watch.
How Watch Insurance Is Priced
A luxury watch insurance is usually priced around 1-2% of your watch’s appraised value per year. However, it also considers several risk factors before the final premium is decided. These risk factors include:
- Location
- How often you travel
- Value tier of the timepiece
Just like cars, high-value luxury watches or those you regularly use internationally will attract a slightly higher rate.
For example, a $50,000 high-demand steel sports model may cost between $500 and $1,000 per year to insure, while a $6,000 professional dive watch may only cost $60 to $120 annually.
While the rates may seem high, they are modest when compared with replacing the watch, especially if it’s a high-demand timepiece.
Regular professional watch servicing also plays a key role in preserving long-term value, especially for high-complication or limited-production models.
Is Watch Insurance Worth It?
The ultimate question now is, do you need specialised watch insurance? The answer deletes your collection size, lifestyle, and risk tolerance.
For some owners, insurance is part of a broader financial strategy. Others may eventually decide to sell your watch or trade your watch toward a different reference instead of maintaining long-term coverage.
Here’s a deeper dive:
It Makes Sense If
You should opt for specialised luxury watch insurance if your watch or collection is valued above $5,000, but typically $10,000. This protection is mostly needed if you have highly sought-after steel sports models that raise your risk of theft. For travellers, you have a higher risk exposure as anything could happen during a trip, which makes protection a better option than replacement.
It May Not Be Necessary If
On the other hand, you might not need specialised luxury watch insurance if your watch is valued below the policy’s jewellery sublimit. You especially don’t need the coverage when you rarely take the watch outside storage, or can easily replace the watch if it gets damaged or stolen.
Choosing insurance coverage primarily depends on your situation and needs. So assess them before making a decision.
Conclusion
Luxury watches are accessories, but many cost more than people’s cars. If you fall in this category, you can’t depend on homeowner’s insurance because they offer limited coverage.
For collectors seeking broader protection, agreed-value certainty, and worldwide coverage, Precision Watches offers specialist luxury watch insurance through Wondercare, a provider launched with the support of Kevin O’Leary.
If your watch holds meaningful financial or personal value, dedicated coverage can provide confidence and peace of mind. Our team is available to help you review options and determine whether specialist insurance is the right fit for your situation.
FAQs
Is watch insurance worth it?
Only consider watch insurance if your timepiece is a significant financial investment, usually between $5,000 to $10,000. Doing this can be a wiser decision than replacing the entire one when it gets damaged or stolen, either at home or during travels.
How much does luxury watch insurance cost?
Luxury watch insurance is usually based around 1-2% of your watch’s appraisal value annually. Therefore, a watch worth $20,000 can cost around $200 to $400 per year, but this can change depending on location, travel habits, and risk potential.
Does watch insurance cover accidental damage?
Specialized watch insurance policies cover a variety of risks, including accidental damage, such as drops or impact. This is why you can’t rely on homeowner’s insurance since this type of coverage isn’t included in most policies.
Do I need an appraisal to insure my watch?
Most insurers rely on a professional appraiser or proof of value before issuing coverage. This ensures the watch is insured at its correct market value, helping prevent payout disputes in the future.
