Insurance Coverage

[SixTee2]

I read a post on another forum where I'm not registered, and believe I should comment here, where I am.

The question is about insurance and above list price replacement value; Rolex recommended retail price can be three quarters, two thirds or half the true price to replace the item. Example: USD 8-9,000 compared to 16,000 or more, for a Jubilee Pepsi GMT.

These remarks apply to the USA only.

Jewelers can often buy a Jeweler's Block Policy; if you are such a dealer, you probably (or certainly should) have this coverage. If you are not sure, you probably aren't and would not qualify.

Individual Rolex owners, such as WIS types (none of those here, right?) are limited to covering jewelry on a homeowner's or renter policy. There is often a fixed, blanket amount for jewelry. Depreciation often applies, and a watch can be considered fully depreciated after 30 years; it's a machine, not a diamond ring. The $5-6K paid for a Submariner a decade or more ago will be indemnified at about 2/3 of its cost new, LESS DEDUCTIBLE.

Photos and documentation are ESSENTIAL for making a claim, and the dealer might be contacted to verify, in some cases.

It is possible to have agreed valuation (market value & cost vs MSRP) for certain items, but this will be expensive.

Call your agent.

[123Blueface]

OMG!
So much misconception and misinformation on this topic.

Watches not specifically stated on a policy (SPP/Floater) are subject to policy limits for jewelry, generally $1,000 but can purchase higher, and are subject to depreciation (known as betterment) and only covered for a peril listed on the policy (e.g. theft on premises, fire, etc, most policies have 17 listed perils).

Watches insured on SPP/Floater can be insured for any agreed appraised amount. You can insure a BLRO for $18,000 even though it costs $9200. It is all risk, no specific perils. It will pay you up to insured amount to replace but if can be located for less, you will not get the limits. There is no depreciation/betterment. Only deduction is deductible.

Hopefully this clarifies a bit.

[123Blueface]

BTW, photos are not “required” for making a claim.
At the time of binding the risk, the carrier underwrites based on their requirements, which may include an appraisal, photos, receipts, etc.
Once bound, you don’t ever have to show any other pictures of your watch. They can certainly ask and if you have them, great, but no court of law will uphold not having them as basis for a denial of a claim. If you don’t have any photos, you can’t be compelled to produce what doesn’t exist.
The only requirement for a Claim once an SPP is bound is generally a police report and a sworn proof of loss.

[SixTee2]

Originally Posted by 123Blueface

OMG!
So much misconception and misinformation on this topic.

Watches not specifically stated on a policy (SPP/Floater) are subject to policy limits for jewelry, generally $1,000 but can purchase higher, and are subject to depreciation (known as betterment) and only covered for a peril listed on the policy (e.g. theft on premises, fire, etc, most policies have 17 listed perils).

Watches insured on SPP/Floater can be insured for any agreed appraised amount. You can insure a BLRO for $18,000 even though it costs $9200. It is all risk, no specific perils. It will pay you up to insured amount to replace but if can be located for less, you will not get the limits. There is no depreciation/betterment. Only deduction is deductible.

Hopefully this clarifies a bit.

It confuses, not clarifies. I would caution anyone insuring a higher value watch or jewelry against listening to jargon and buzzwords. Many insurance buyers do not understand what SPP might mean or what floater represents; your choice of jargon does not apply to every market. You do not know if what you're discussing is available in every state or from every insurer in that state.

Read the last 3 words of my post.

Depreciation is NOT betterment, your statement is more incorrect than 2+2=6 In other words, you're quite wrong.

The nuances and differences between a Named Perils and All Risk policy are not as you state; they can be more complex.

By the way I am CPCU with several decades of executive underwriting management; you are not. Your inexperience and shallow knowledge are showing through to an expert like me. Frankly you sound like a junior WIS telling a three decade Rolex or Grand Seiko engineer how the pallet fork should operate or what good hairspring amplitude should be.

Folks, call your agent if you are unsure and if you cannot get good answers YOU understand, or find an agent who specializes in high net worth customers. If the agency is responsible and legitimate, they will answer your questions and clarify your doubts for free, even if you are not already their customer.

[SixTee2]

Whether photos are required by a claim investigator or adjuster in one case or another is too large a risk to take. Have them ANYWAY, and ensure the serial number is captured. Keep your documentation separate from the watch and keep that paperwork safe.

You are correct about once coverage is in effect BUT claim handling procedures can and do vary widely from company to company, and over time even at the same company. Never assume what will happen in advance. The adjuster or claims handler assigned to your policy is going to look closely - very closely - at a claim for $15,000 concerning a watch listed by the manufacturer at <$10K, not matter WHAT the policy says.

There can be many claims where a police report is not an absolute requirement; it is possible coverage includes worldwide territory where police reports are not possible, even for a valid bone fide claim.

Photos go a LONG way to proving a loss.