Insuring Six Figure Watches

[wiem0014]

Hello Everyone. Over the weekend I purchased my first Patek, which is by far the most valuable watch in my collection. Up to this point I have insured my watches with a Personal Articles Policy under my homeowners through State Farm. It has treated me well for years, but they have started to be a bit pickier with appraisals and I thought this would be a good time to shop around and make sure it is still the best.

Would you mind telling me what you guys use to insure your more expensive watches? Roughly how much are you paying (in terms of % of value) and have you had good/back experiences with any claims you have made? Specifically looking for feedback on Hodinkee, Chubb and Jeweler's Mutual.

Thank you so much!

[Jackflash]

Not sure how useful this information is to you, but in Switzerland you’re looking at 1% of the watch value in annual premium.


Patek 5146G, Patek 5167A, Rolex Daytona 116500LN, Rolex GMT II 116710LN, Rolex Datejust 116200, Rolex Day-Date 228235, Grand Seiko SBGE011, Breitling Intruder Reveil

[Calatrava r]

A lot of threads on this topic in the Rolex discussion section.

[wiem0014]

Originally Posted by Calatrava r

A lot of threads on this topic in the Rolex discussion section.

I have definitely seen general threads on the topic, primarily from Rolex owners. I thought I would post here because I am looking for feedback specifically from people who have experience insuring (and potentially dealing with damage/losses) on $100k+ watches.

I am not sure the experiences should be that different (and if they aren't that would be great feedback) but that is why I posted here.

[JR16]

HODINKEE seems to be popular lately. Otherwise you can look at some companies that deal with high net worth / high valuation items - jewelers mutual, pure, Chubb - for example.


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[Breizh]

I'm with State Farm as well and get my appraisals with Elite Timepieces, takes 2mn online and you get it within 24h ($49). Their appraisal is up to date market value.

[srvrf]

I'm with State Farm and have my watches insured with them. Really I think that the appraisal is the most important thing. Mine specifically mentions the higher replacement value due to scarcity etc. and I've not had a problem.

[wiem0014]

Originally Posted by Breizh

I'm with State Farm as well and get my appraisals with Elite Timepieces, takes 2mn online and you get it within 24h ($49). Their appraisal is up to date market value.

Originally Posted by srvrf

I'm with State Farm and have my watches insured with them. Really I think that the appraisal is the most important thing. Mine specifically mentions the higher replacement value due to scarcity etc. and I've not had a problem.

Excellent, that's great to know. I have done my appraisals through ValueMyStuff.com and had no problems until about 60 days ago. They now reject any of their appraisals because they never physically inspect the watch. So now I'm working with my AD to have a Market Value appraisal, but wasn't sure if others dealt with that too.

[Johnny Crystal]

USAA won’t insure a watch less than 5 years old for more than 5% of the MSRP even with a market appraisal.

[newonos]

word to the wise: keep your appraisals updated. If its too high, they'll adjust you down. If too low, they'll limit you to the appraisal value. Basically heads they win; tails you lose.

[sgfortino]

Check out Wax Insurance too.

[MJPT III]

I purchased my first Patek 2 weeks ago and have been jumping thru hoops with Jewlers Mutual . I have 7 -8 Rolex’s insured with them and other Jewlery . NormLly it’s a breeze to get coverage . This time it’s a total PITA . I just want to bind coverage so the watch can be worn .
Who has experience insuring over retail based off a fair market appraisal ? I get mixed answers from Jewlers mutual . I don’t mind paying the higher premium for the higher value but I expect to be paid out the value my premium is based on .

[Apheaven]

Originally Posted by MJPT III

I purchased my first Patek 2 weeks ago and have been jumping thru hoops with Jewlers Mutual . I have 7 -8 Rolex’s insured with them and other Jewlery . NormLly it’s a breeze to get coverage . This time it’s a total PITA . I just want to bind coverage so the watch can be worn .
Who has experience insuring over retail based off a fair market appraisal ? I get mixed answers from Jewlers mutual . I don’t mind paying the higher premium for the higher value but I expect to be paid out the value my premium is based on .

Hodinkee insurance (underwritten by Chubb) is your solution…


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[DavidSB]

I was advised not to insure my watches with my home owner policy as a watch claim could be a chargeable claim and increase future home owner premiums. Maybe someone with more knowledge can confirm this.

[Humble michael]

Wait, isn’t that true about any claim??Guess with that logic I shouldn’t have homeowners insurance at all because if I make a claim they might raise my rates. Sorry doesn’t make sense to me. :-))

[Pimpsy]

FWIW- Hodinkee just quoted 2% to insure a 5712, 228206, and 126660 outside of NYC.
They stated that the premium was high because most of the insured value was tied to one piece, the 5712.

They mentioned that I could get a better rate if I kept the 5712 in a safe deposit box. Of course, I replied that if I kept the 5712 in a safe deposit box, I wouldn't need to insure it, lol.

[Russell996]

Originally Posted by DavidSB

I was advised not to insure my watches with my home owner policy as a watch claim could be a chargeable claim and increase future home owner premiums. Maybe someone with more knowledge can confirm this.

Originally Posted by Humble michael

Wait, isn’t that true about any claim??Guess with that logic I shouldn’t have homeowners insurance at all because if I make a claim they might raise my rates. Sorry doesn’t make sense to me. :-))

Originally Posted by Pimpsy

FWIW- Hodinkee just quoted 2% to insure a 5712, 228206, and 126660 outside of NYC.
They stated that the premium was high because most of the insured value was tied to one piece, the 5712.

They mentioned that I could get a better rate if I kept the 5712 in a safe deposit box. Of course, I replied that if I kept the 5712 in a safe deposit box, I wouldn't need to insure it, lol.

I pay approx. 0.5% of value on a homeowner policy - I unfortunately had to make a claim of £30k (about 13 years ago) and there was no increase in my premiums in the subsequent years. Some pieces I have insured as new for old and some I have as market value, clearly the premium is based on the total insured sum. I am in the UK.

[blatchcorn]

Originally Posted by Russell996

I pay approx. 0.5% of value on a homeowner policy - I unfortunately had to make a claim of £30k (about 13 years ago) and there was no increase in my premiums in the subsequent years. Some pieces I have insured as new for old and some I have as market value, clearly the premium is based on the total insured sum. I am in the UK.

Can you share what insurance firm you use? Mine currently caps all claims at £20K for single items

[AbeFroman]

Originally Posted by Pimpsy

FWIW- Hodinkee just quoted 2% to insure a 5712, 228206, and 126660 outside of NYC.
They stated that the premium was high because most of the insured value was tied to one piece, the 5712.

They mentioned that I could get a better rate if I kept the 5712 in a safe deposit box. Of course, I replied that if I kept the 5712 in a safe deposit box, I wouldn't need to insure it, lol.

That makes sense because the monetary loss would be significant if it’s tied to mostly one piece. Also, zip code plays a huge factor in premium calculations.

Once you cross over the $200k threshold w/ Hodinkee you may qualify for premium discounts. They have about eight questions they’ll ask you to see if you qualify (storage, any domestic workers at home, how many pieces you travel with, etc).

Just chatted with them about this a couple weeks ago actually.

[LJubel328]

Originally Posted by AbeFroman

That makes sense because the monetary loss would be significant if it’s tied to mostly one piece. Also, zip code plays a huge factor in premium calculations.

Once you cross over the $200k threshold w/ Hodinkee you may qualify for premium discounts. They have about eight questions they’ll ask you to see if you qualify (storage, any domestic workers at home, how many pieces you travel with, etc).

Just chatted with them about this a couple weeks ago actually.

They asked me these same questions. Depending on the size and value of your colectivo. They will either provide you a quote on their platform or reach out with additional questions if the underwriting is a larger amount.

Ultimately, they would not provide me a quote nor would they insure me. I asked for a reason and they would not disclose why. I was hoping to insure at market value hence why I I quoted with them, guess I will stay with my current umbrella policy insured at retail.


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[GoingPlaces]

AIG Private, jewelry policy attached to homeowners. A little under 1%.

[Calatrava r]

Most personal article policies attached to Homeowner's policies are separate riders and do not automatically cause a rise in the rate for the HO policy if a claim is made. The concern is they pay the watch claim and then cancel the rider if they do not feel comfortable carrying the coverage anymore due to the circumstances of the loss which could be anything. I guess this is true with any personal articles policy.

[2nastie]

Anyone have experience with Hodinkee Insurance for Canada?

Do they even insure out of the US right now... like for a neighbouring country like Canada?

[AbeFroman]

Originally Posted by 2nastie

Anyone have experience with Hodinkee Insurance for Canada?

Do they even insure out of the US right now... like for a neighbouring country like Canada?

Only USA right now.

[Arthur Daley]

I insure through JM. Only insure watches above $20K, and only insure for retail. I figure - if I lose one (unlikely) I'll break-even, and I don't want to pay a premium for insurance just because my 5167 is worth 4-5X what I paid for it.

I've had zero issues with JM over the years. Never had a watch appraised - just used the AD receipt.

Oh - and I keep my watches in a heavy duty safe when unworn. I forget the rating - but it's professional grade, and rated to withstand a 2 hour chemical fire. Cost 5K installed. Weighs a LOT. Helped with the premium. Highly recommend a good safe from a REPUTABLE safe company.

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[srvrf]

I have many policies through State Farm and our personal articles are 1.3%

[WatchTodd]

I am under a Cincinnati compare site policy. I had watches valued over 10k insured at the priced I purchased them for. I recently had some Pateks and Rolexes appraised for replacement value. The cost to insure some of these appreciated hard to come by watches is prohibitive. I have taken a number of them to the Safe Deposit box. I wear my watches and this makes it very difficult.
I would really appreciate any suggestions

[Arthur Daley]

Originally Posted by WatchTodd

I am under a Cincinnati compare site policy. I had watches valued over 10k insured at the priced I purchased them for. I recently had some Pateks and Rolexes appraised for replacement value. The cost to insure some of these appreciated hard to come by watches is prohibitive. I have taken a number of them to the Safe Deposit box. I wear my watches and this makes it very difficult.
I would really appreciate any suggestions

I'd personally never insure for more than I paid. First, because I believe that the likelihood of a loss is very, very low. Second, because even if I do lose a watch, I'll only be out what I paid for it.

Also, I store my watches in a safe, at home. A highly rated burglar "proof" and fireproof safe might set you back 5-10K installed, depending on size. Don't bother with gunsafes or the ornate ones that you see at gun stores and other places. Go to an actual safe store. A fancy looking safe may look impressive, but an average residential burglar can get into one in less than 30 mins. Most safe stores will have a row of low quality safes out back to show you how most aren't worth it. Mine, a 5K small safe, would take your average residential burglar half a day to get into with usual tools. If they had professional grade safe cracking tools and were trained on safe cracking - maybe 30 mins. And it weighs 800lb despite being just knee high, so they won't be able to budge it..... get a good safe, and remember to "buy the company/seller, not the safe". These people are delivering to your house, know where the safe will be, and know you'll be storing valuables. Good luck.

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[WatchTodd]

Thanks that’s very helpful. I have a couple of safes that are of decent quality Connected to my alarm system and have Winders inside. I agree it hardly makes any sense to ensure these pieces in excess of purchase value. The only risk is if it’s stolen while you’re wearing it or on travel. I believe that to be lower probability and manageable. I keep my watches in a number of different places so that helps reduce the probability of having my entire collection wiped out.


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[Russell996]

Originally Posted by Arthur Daley

I'd personally never insure for more than I paid. First, because I believe that the likelihood of a loss is very, very low. Second, because even if I do lose a watch, I'll only be out what I paid for it.
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Originally Posted by WatchTodd

Thanks that’s very helpful. I have a couple of safes that are of decent quality Connected to my alarm system and have Winders inside. I agree it hardly makes any sense to ensure these pieces in excess of purchase value. The only risk is if it’s stolen while you’re wearing it or on travel. I believe that to be lower probability and manageable. I keep my watches in a number of different places so that helps reduce the probability of having my entire collection wiped out.

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I might be wrong but I was under the impression you need to keep the insurance company appraised of the value. For instance if you insure a 5711 at MSRP you are clearly underinsured and the insurance company might have legitimate grounds for not paying out since the risk of a targeted burglary at your house is potentially much higher.