Insuring Your Watch Collection: What You Need to Know

As watch collections grow in value, proper insurance becomes essential. Understanding coverage options, documentation requirements, and claim processes helps protect your investment.

Homeowner's or renter's insurance typically covers watches, but with limitations. Standard policies often cap coverage for jewelry and watches at $1,000-2,000 total. This is insufficient for most luxury watches. Additionally, standard policies may not cover all loss scenarios, such as mysterious disappearance.

Scheduled personal property coverage, also called a rider or floater, provides specific coverage for individual watches. You list each watch with its value, and the insurer covers it for that amount. This coverage typically includes all risks—theft, loss, damage, and mysterious disappearance—with no deductible.

Specialized watch insurance companies like Hodinkee Insurance, Jewelers Mutual, or Lavalier offer policies designed specifically for watches. These policies understand watch values, offer agreed-value coverage, and provide streamlined claim processes. Premiums typically run 1-2% of insured value annually.

Documentation is crucial for insurance. Keep purchase receipts, appraisals, service records, and photographs. For vintage watches without original receipts, professional appraisals establish value. Update appraisals every few years as values change.

When filing claims, documentation speeds the process. Report theft to police immediately and obtain a report number. Contact your insurer promptly. Provide all documentation, including photos and receipts. For repairs, get estimates from authorized service centers.

Consider whether insurance makes sense for your collection. For watches under $5,000, the cost of specialized insurance may not justify the coverage. For valuable pieces, especially those appreciating in value, insurance provides peace of mind and financial protection.