Watches have been associated not only with utility but with status. They today represent expensive piece of jewelry commemorating the personal status and style of a person. With craftsmanship and use of expensive material (diamonds, gold, etc.), today, there is no limit of how expensive the watches can be. Some watches such as Patek Philippe are passed on from generation to generation! The high cost and intangible value of these watches also creates a risk for the watch owners.
No matter how much watch owners tend to save their watches from the damage and risk but things can still go wrong. Therefore, it is advisable to have watch insurance policy in order to protect a valuable asset in the form of a watch. This insurance protects watch owners if their watches get damaged, lost or stolen. They replace or repair them as per the condition and requirement depending upon its value.
The basic essence behind taking a watch insurance is to cover the precious watch in a proper manner. Most of the watch owners think that their watches get insured under the policy of home insurance. However, there will be contents coverage under home insurance but this coverage would not be sufficient for the expensive watches. There is a valid reason from insurance companies’ behalf where normally, coverage amount is less than the cost of the watch.
Benefits of Watch Insurance
Watch insurance protects the watches in the event of an accidental damage, robbery, theft, storm, fire and flood where they can be either replaced or repaired. Moreover, there is coverage for watches after manufacturers’ warranty expiration. There is replacement is case if the watch gets stolen. If there is a loss and original watch is not available, then insurance companies provide replacement watch up to the original purchased price. Watch owners can cover their watches for a varying time period of 2, 3 or 5 years.
Various coverage aspects of this insurance are as follows:-
- Comprehensive insurance – this insurance is applicable in case if the watch gets stolen, damaged or breaks down after the expiration of the manufacturer’s guarantee.
- Like for like replacement coverage upon possibility
- No excess payment in case of a claim
- Countrywide coverage for the insured goods
Exclusions in the Watch Insurance Policy
However, this insurance can be really beneficial but insurance holders should also know about certain policy guidelines where they may face some exclusion in the policy. Some major exclusion aspects are:-
- Damage to the watch due to common wear and tear, scratching and denting
- Theft without any signs of being forced for the entrance or exit
- Theft from the motor vehicle if all the access points are locked and security systems are totally activated. Moreover, insured watch should be covered up out of view in the locked glove department or locked boot
- Loss or mysterious disappearance of the watch
Types of Watch Insurance
Based upon the services of the insurance companies, this insurance can be segmented in two types. These two types can be named as standalone policy and high net worth home insurance policy.
This insurance policy is more expensive than the other watch insurance policy. This policy covers precious watches and other jewelry items. Generally, there are higher premium rates in order to alleviate the risks associated with the costly watches. Watch owners should descriptively scrutinize the degree of coverage along with the specific terms and conditions for completely understanding all the aspects of this policy.
High Net Worth Home Insurance Policy
This insurance policy is comparatively affordable than standalone policy in terms of cost. Moreover, it is easier to find this policy than the standalone policy as it is provided by various high street insurance companies. Here, watch owners have an opportunity to select their own company where they can freely opt to repair or replace their watch. Therefore, this policy is more flexible than the former policy.
In other terminologies, this insurance can also be divided into two other types as high value watch insurance and watch protection insurance.
High Value Watch Insurance
This insurance policy is specifically designed to cover expensive watches and other types of jewelry which cannot be covered in typical watch insurance policy. It can be purchased by using two ways. Firstly, it can be availed with the help of standalone policy where premium rates are higher due to increased level of risk with the high cost of the watch. In another way, it can be purchased along with the home insurance policy.
Watch Protection Insurance
This insurance policy protects the watch to its original value in case of its loss, theft or damage. It is a special type of policy covering the watch owners to the full value of the watch.
Various Watch Insurance Companies
There are many watch insurance companies in the market and competition definitely gives an upper hand to the end user. Some of these insurance companies are:-
The Allstate Corporation represents the largest casualty and personal lines property insurance company in USA. Founded in 1931, it became a publically traded firm in 1993. They have total assets of $125.6 billion and they had a standing of 93 in 2011’s Fortune 500 list of largest American companies.
In terms of personal property, they provide reimbursement on the basis of replacement cost as well as actual cash value. Watches are quite high in value ranging from $25 to $5,000. Therefore, Allstate provides per item limit against all the watch claims.
Perfect Circle is a subsidiary of Jewelers Mutual Insurance Company founded in 1913. They are licensed in all the 50 states along with A+ rating from A. M. Best for last 20 years. They provide insurance coverage for jewelry, watches, etc. against damage, loss and theft.
They repair the damaged watch and replace the lost watch as per the requirement of the customer. Moreover, there is auto renewal policy up to 1 month for newly purchased items of jewelry extending to a margin of $10,000.