Insurance Coverage on SS Models

[Seekthefinest]

Wanted to know people's thoughts on how to handle insurance on appreciating SS models. I have had a Jewelers Mutual Insurance policy on my 116500N since purchase. When it was purchased the AD provided me a market value appraisal, so the insured cost at the time was $21,000, which JM was on-board with. Since I purchased at MSRP, the delta between market value and appraisal at the time was approximately $10k. Now, these watches are selling for north of $30k, even as high as $35k. While I don't really understand the appreciation on the watch over the last three years, I do want to make sure I covered if I needed to replace it. My annual premium is somewhere around $250.00 through JM and it looks like through Hodinkee (Chubbs) it would be closer to $380.00 annually, but they would provide appreciation protection. Would I be stupid to look into having another market value appraisal done on the watch or am I just over-insuring the watch? While I realize many people wouldn't worry about insurance, loss, etc. I am not in a position to just bring another $10k-$15k to the table if I needed to replace the watch in event of a loss.

This watch was purchased as a generational keepsake and will probably be my only Rolex unless my wife starts to understand the value of Swiss Timepieces.

[Bryan81]

I don't think it would be over insuring the watch to have it insured for the actual value you'd have to pay to replace it. Yes, you can technically replace it through an AD at MSRP, but that doesn't seem like a realistic option.

FYI, with Hodinkee you don't need to get an updated appraisal. They don't require an appraisal for the watches you insure. I actually just emailed them on a similar topic for my BLRO the other day. Below is their response. If you stay with JM, then I think you'll want to get an updated appraisal.

In the event of a loss, you would be covered up to 150% of the watch's value in the secondary market in terms of its replacement cost. That means that, in the event of a loss, you would be paid out up to 150% of its market value when you are able to provide a quote or invoice for the replacement watch from the retailer or vendor of your choice. In your case, your GMT-Master II would then be covered up to $xx,xxx.

On the other hand, if you just wanted a cash payout in the event of a loss and did not want to replace the watch, the most you would be paid out would be the stated value on your policy.

So, with that market value protection, you should be good, but also know you can always adjust the values on your watches at any time, Request Quote, and you would be prompted with a prorated balance due (or refund if you ever decrease your coverage). Just be sure to submit that update after requesting a new quote for confirmation.

[Jack T]

I’m surprised that an insurance company will value a watch currently in production for more than its MSRP. If it’s lost, stolen or it’s damaged beyond repair, the insurer will cut you a check for the MSRP, to insure it for more creates a moral hazard. For vintage and collectibles, the coverage is probably different.

In most cases, it’s not up to the insured whether to go grey market or through an AD to replace the insured watch, it is the insurance company’s choice.

And Rolex AD’s are not supposed to provide appraisals for greater than the MSRP of a given current production watch; and no appraisals on discontinued models.

Do you have replace the cost coverage or actual cash value coverage? Check the coverage section of your policy.

[CashGap]

Originally Posted by Jack T

I’m surprised that an insurance company will value a watch currently in production for more than its MSRP. If it’s lost, stolen or it’s damaged beyond repair, the insurer will cut you a check for the MSRP, to insure it for more creates a moral hazard.

Ten years ago, you could purchase a Rolex for X% below MSRP every day of the week, insure it, file a claim, receive MSRP, repurchase it for X% below MSRP. Moral hazards are everywhere.

[Jack T]

Originally Posted by CashGap

Ten years ago, you could purchase a Rolex for X% below MSRP every day of the week, insure it, file a claim, receive MSRP, repurchase it for X% below MSRP. Moral hazards are everywhere.

True, people will often try to get something, but most insurance companies will try to avoid the obvious.

[Seekthefinest]

When I purchased the watch, I called JM and asked how I should handle the MSRP vs. Market Value issue, specifically on the Daytona because at the time that was the one watch that you couldn't really purchase at MSRP, outside maybe the 5111 Patek. They said to get a market value appraisal and insure it at the value, which I did. Now the price to replace would be $10k more, so basically if the watch was stolen, I would have to add an additional $10k to my insurance payout to replace the watch. It's an issue because my wife still doesn't understand why I spent $12k on a watch in the first place, though I now could tell her that it is worth as much as a new Honda...

[RayRay89]

I use JM and have my watches appraised for market value.

[NardinNut]

Hodinkee all the way. They’ve partnered with Chubb, a top notch insurance provider, for the coverage. It’s insurance for watch collectors. Not the cheapest but great coverage and extremely easy.

[TheGuvna]

My insurer asked for the receipt. I insured them at the amount they were purchased for.

[clickingdru]

I love this thread.

[Oystersteel92]

Originally Posted by TheGuvna

My insurer asked for the receipt. I insured them at the amount they were purchased for.

Same. MSRP + sales tax on a SS Daytona. I have thought about seeking a market based appraisal but don't know how my insurance agent would react.

[Orangeheat]

How common is it to insure your rolex? Curious as a new owner....

[DougFNJ]

I insure all my valuable watches. I insure them on a State Farm Personal Articles Policy. The premise of Insurance is the make the insured while in the event of a loss. Insurance companies have buying power. They will replace the watch of a loss occurs.

I had a Seamaster stolen from a gym locker years ago. They sent me the newer version of that watch brand new in less than 2 weeks.

I just purchased a Sub. I sent photos of the watch including serial number. I sent a photo of the warranty card and receipt and insured for price paid. They have inflation coverage which increases the coverage annually so you don’t have to request it.


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[Aquaholic_user]

Originally Posted by Orangeheat

How common is it to insure your rolex? Curious as a new owner....

Not sure how common it is, but I'd assume it's smart to insure an expensive watch. Watches have been on thieves list for a while and will continue to be. I use jewlers mutual.

Sent from my balloon knot

[Russell996]

Originally Posted by Seekthefinest

Wanted to know people's thoughts on how to handle insurance on appreciating SS models. I have had a Jewelers Mutual Insurance policy on my 116500N since purchase. When it was purchased the AD provided me a market value appraisal, so the insured cost at the time was $21,000, which JM was on-board with. Since I purchased at MSRP, the delta between market value and appraisal at the time was approximately $10k. Now, these watches are selling for north of $30k, even as high as $35k. While I don't really understand the appreciation on the watch over the last three years, I do want to make sure I covered if I needed to replace it. My annual premium is somewhere around $250.00 through JM and it looks like through Hodinkee (Chubbs) it would be closer to $380.00 annually, but they would provide appreciation protection. Would I be stupid to look into having another market value appraisal done on the watch or am I just over-insuring the watch? While I realize many people wouldn't worry about insurance, loss, etc. I am not in a position to just bring another $10k-$15k to the table if I needed to replace the watch in event of a loss.

This watch was purchased as a generational keepsake and will probably be my only Rolex unless my wife starts to understand the value of Swiss Timepieces.

The question to ask is can your insurer/AD source you a piece at MSRP. If so then no need to increase your cover, if not then the next question is does the policy include an uplift to cover market increases (mine covers up to 200% but is only valid for 3 years from last appraisal before a new market appraisal is required), if not or outside of time limits then yes you need to increase the cover. I do have a piece insured at a multiple of current MSRP due to not being able to replace the piece from my AD - insurers will insure a valid market value no problem but will charge premiums based on the increased valuation.

[fskywalker]

Originally Posted by Aquaholic_user

Not sure how common it is, but I'd assume it's smart to insure an expensive watch. Watches have been on thieves list for a while and will continue to be. I use jewlers mutual.

Sent from my balloon knot

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[septantrionalis]

Originally Posted by Orangeheat

How common is it to insure your rolex? Curious as a new owner....

I'm curious about this too. I've had my Explorer for over a year now and wear it 24/7. I haven't purchased insurance for it yet. Honestly, I hadn't even thought about it...