Questions regarding insurance policy

[gerobak]

I insured my Sub (valued at: 9,414) for $76.00 a year from Amica Home Insurance under Scheduled Personal Property.

If you insured your watch under the similar Scheduled Personal Property (probably under other companies. e.g: State Farm, etc)
I have few questions:
1. Should we update the market value (Dealer price or Market price) from time to time?
2. When something happened (loss, broken, or stolen), how would they cover it? Do they try to give us the watch back or just give us a check of the valuation?

Thanks in advance.

[burnthesehills]

Originally Posted by gerobak

I insured my Sub (valued at: 9,414) for $76.00 a year from Amica Home Insurance under Scheduled Personal Property.

If you insured your watch under the similar Scheduled Personal Property (probably under other companies. e.g: State Farm, etc)
I have few questions:
1. Should we update the market value (Dealer price or Market price) from time to time?
2. When something happened (loss, broken, or stolen), how would they cover it? Do they try to give us the watch back or just give us a check of the valuation?

Thanks in advance.

Honestly, insurance policies are so dramatically different from state to state and company to company only your insurance agent or insurance carrier could answer this question for you.

If it is a modern Submariner, you likely insured it with an appraisal from the dealer. Doubtful your insurer will consider or honor grey market pricing. If there is a claim, they would likely pay to repair or replace. If the watch needs to be replaced, I think they would just cut you a check for the stated value.

But again I would recommend checking with your agent or insurer.

[wchbos]

I am insured through Hodikee/Chubb and just got a notice about my renewal. They are increasing the value of my insured watches by 5%.

[gerobak]

Originally Posted by wchbos

I am insured through Hodikee/Chubb and just got a notice about my renewal. They are increasing the value of my insured watches by 5%.

I tried with hodinkee, and I think they are pricier about 30-40% from the scheduled personal property coverage under the home insurance though.
Hodinkee is surely much more convenient though.

[envuks]

The value question is your own call. It’s probably worth it, but for example my 116500 is insured for msrp as a rider on my homeowners policy.

As for the how would the insurance company conceptually replace it, that’s a question for the insurer. It’s likely listed in the policy, but you could ask. Mine provides a check for the insured value, less my deductible.

There are some other policies out there where the source a replacement item claimed to be equal. Generally insurers in this type of agreement are more focused on the insured value & replacement cost at time of insurance. But also, I think they can provide cash value if they are not able to source a replacement at insured value.

Insurance is complicated. Asking your policy provider or agent is best as it will vary


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[1William]

Insurance is a contract and the details are laded out in the policy. Don't look for more than the insurer is obligated to pay by contract. I have a very close family member who has been in the insurance business for more than thirty years and they told me to get my watches off my homeowners policy years ago. Make a claim and bring your homeowners policy under review and then get it cancelled and if you have a mortgage the associated issues can be significant. I used to use Jewelers Mutual but the appraisal part was daunting. I now use Hodinkee, which is Chubb Insurance, and the ease of adding and deleting is significantly better. I have never filed a claim so I can not speak to that, but per the advice, my watches are on a different policy. Something to consider.

[brandrea]

Originally Posted by 1William

Insurance is a contract and the details are laded out in the policy. Don't look for more than the insurer is obligated to pay by contract. I have a very close family member who has been in the insurance business for more than thirty years and they told me to get my watches off my homeowners policy years ago. Make a claim and bring your homeowners policy under review and then get it cancelled and if you have a mortgage the associated issues can be significant. I used to use Jewelers Mutual but the appraisal part was daunting. I now use Hodinkee, which is Chubb Insurance, and the ease of adding and deleting is significantly better. I have never filed a claim so I can not speak to that, but per the advice, my watches are on a different policy. Something to consider.

Excellent advise as usual

[Ballzzz]

Originally Posted by 1William

Insurance is a contract and the details are laded out in the policy. Don't look for more than the insurer is obligated to pay by contract. I have a very close family member who has been in the insurance business for more than thirty years and they told me to get my watches off my homeowners policy years ago. Make a claim and bring your homeowners policy under review and then get it cancelled and if you have a mortgage the associated issues can be significant. I used to use Jewelers Mutual but the appraisal part was daunting. I now use Hodinkee, which is Chubb Insurance, and the ease of adding and deleting is significantly better. I have never filed a claim so I can not speak to that, but per the advice, my watches are on a different policy. Something to consider.

Agreed, a friend in the industry explained to me never to tie anything to large assets, which could bring them into focus if claims were needed. This is going back many years and I still have them for certain articles but he suggested Travelers as a stand alone for jewelry long before hodinkee etc.

[Ferdelious]

Originally Posted by 1William

Insurance is a contract and the details are laded out in the policy. Don't look for more than the insurer is obligated to pay by contract. I have a very close family member who has been in the insurance business for more than thirty years and they told me to get my watches off my homeowners policy years ago. Make a claim and bring your homeowners policy under review and then get it cancelled and if you have a mortgage the associated issues can be significant. I used to use Jewelers Mutual but the appraisal part was daunting. I now use Hodinkee, which is Chubb Insurance, and the ease of adding and deleting is significantly better. I have never filed a claim so I can not speak to that, but per the advice, my watches are on a different policy. Something to consider.

I've used JM for years and never had an issue with appraising but all my watches are appraised at MSRP.

[Calatrava r]

Most insurance companies will do everything possible to replace the watch to minimize claims by not paying out cash. I insure for what I paid on most everything. Hard to argue with that. Just because an item is insured for X does not mean the carrier will pay X. X is just the most they can pay unless you have guaranteed replacement coverage. Carriers will assess what they call "Actual Cash Value" at the time of loss and that is what they will voluntarily pay, even if it is less than X. As many brands have appreciated on the used market this is not an issue with brands such as Rolex. Will a carrier pay the going used market value at the time of loss? I would think so if you are insured for that much. I would think the stand-alone jewelry carriers actually want the used valuation, if it's higher, again to avoid paying out cash where they cannot replace for the insured value.

[m j b]

Excellent advice here, but let me reiterate that insurance laws vary between states, so be careful taking advice from internet sources.

Also, thoroughly document (or get in writing) any statements made by your agent so that if a dispute arises later, you have proof.

If it's not stated in your policy, then it doesn't exist.

[JTL31]

Thanks @1William & @Balzz for you comments. I switched to Hodinkee insurance yesterday based on advice given. While they were more expensive than my personal article policy with State Farm, I wanted that piece of mind.

Question for you now then… I used my last AD appraisal for my Rolex 116610Lv (Hulk)when it was at peak market value of $30,000. Should I lower that to $25,000 now or keep as is?

Regards!

[Gold cups]

Yes you should update the value. If the there is a claim filed for a COL “covered cause of loss” you will be issued a check. Doesn’t have anything to do with what state you’re in or the insurance laws of that state. It’s a contract between you an the insurance company with the details within the contract.

[1William]

Updating values is one of the reasons I like the Hodinkee Insurance. Depending on how many watches you have insured and the stated values, Chubb, the underwriting insurer, will reimburse for up to 150% of the insured value if that is the market cost. This is contingent upon having other watches that are insure that are not part of the loss. As the watch prices climbed, I adjusted upward, as they have fallen, I have adjusted downward. I think I have my Hulk on the policy for 25K, give or take a little. I also have another 14 watches insured and do not believe that I will ever suffer a loss of all at one time. There was a post awhile back about a claim that was made with Chubb and I believe our member was satisfied with the claims experience. The gentleman at Hodinkee, Pedro, Customer Service for the insurance is great to deal with. Until I have an issue with either Hodinkee or Chubb that is negative I will continue to use them. My quote for the insurance for my area was inline with Jeweler's Mutual. Maybe it has to do with location, Security Systems, Safe or volume of watches insured but I find the rates very fair and the convenience the best. Just a follow-up on my personal experience

[JTL31]

^^@Gold cups @1William thank you for your comments; much appreciated Gentlemen!
Regards