We have read horror stories in forums about watch lovers breaking or losing their watches and ending up with nothing from their insurance companies. Unfortunately, even armed robberies at bright daylight appear to be common on the high streets across the globe. To protect themselves, I have even seen posts where people write about using strips to lock their watches to their arm so that they can not get snatched on the street.

Beyond the monetary value of our watch collection, most of us have a sentimental value attached to our watches. Unfortunately, no insurance will ever be able to address this. However, we should make sure that we are covered against the risks.

Disclaimer: This blogposts only reflects our personal evaluations when considering purchasing insurance for our watches. You should do your own research and thoroughly evaluate the risks and costs.

Broken Rolex Daytona by @Henn_Adam_Watches
Broken Rolex Daytona by @henn_adam_watches

What are the risks of owning a luxury watch?

The typical risks of owning a luxury watch are related to the following scenarios.

  • Physical accidents
  • Theft inside and outside of your home
  • Losing your watch
  • Fire or water damage
Omega Seamaster by @apiacreations
Omega Seamaster by @apiacreations

The value of my watch?

Watch prices of some watches such as for example steel Rolex sport watches have risen exponentially. The rarity of these watches has resulted in prices for used watches far above retail price. Further, it might be difficult to even find a new watch as a replacement. As the value of your watch might have gone up your insurance policy probably has not.

Doesn’t my homeowners’ policy cover my watches?

While our first assumption typically is that all our belongings are covered by our homeowners’ policy the value of luxury watches can exceed the maximum value of a typical homeowner’s policy.

Rolex Daytona by @watchrookiee
Rolex Daytona by @watchrookiee

What about the warranty of my watch

While watches come with a manufacturer’s warranty, they also have limitations. Warranties do not last forever or cover all types of breakages and repairs. Further, the warranty might require you to service the watch at an authorized repair shop.

What can I get insurance against?

Depending on the damage of your watch, the insurance should cover the cost of replacing or repairing the watches.

Rolex Datejust by @mrwatch85
Rolex Datejust by @mrwatch85

What are the common pitfalls?

Talking to some of our followers, it is quite clear that insurance policies are complex and there are many pain points related to purchasing them and making sure you are properly covered.

  • As we have touched upon before, watches can appreciate in value which obviously is great 🙂 However, insurance policies might only cover the retail price so if you were one of the lucky few that managed to get your hands on a steel Pepsi or even a Patek Nautilus. You will only get the list price back if something happens not the actual market value.
  • Travel is another issue. Some insurance companies might also have restrictions on how many watches (or the max value of your collection) that is covered when you travel

How much does watch insurance cost and is it worth it?

Depending on a couple of factors such as your location and the value of your collection, watch insurances tend to range from 1% to 2% of the value of the watch a year. So, if a watch costs €5,000, the insurance may cost between €50 – €100 per year.

So what do other people do? Well, based on our survey on Instagram, 30% currently have their watches insured.

That’s why watch owners may consider looking for greater protection of their priest processions and purchase dedicated watch insurance or extend their current homeowners’ insurance to cover their watch collection.

We would love to hear your input about watch insurance in the comment field below. Do you have one? Don’t you think it is necessary? Are you considering it and would like to learn more? Let’s hear it 🙂  

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