Are Watches Covered by Insurance - What is the Basic Knowledge of Watches Insurance?

Luxury watches are popular collector's items, investments or simply practical and attractive companions in everyday life. Separate (additional) insurances are even offered for such valuable possessions. In the following , we will explain whether and when this is worthwhile.


Does Insurance Cover For Watch

Watch insurance: when does it make sense?

Patek Philippe, Tag Heuer, Breitling or the classic Rolex - brand watches are luxury items that make collectors and fans' hearts beat faster. The timepieces can not only have the equivalent of a house , but are often also associated with emotions for the owner. They symbolize important events or are gifts from loved ones.


As attractive as expensive watches are on your wrist or as an investment and collector's item in the showcase, there are some dangers! The luxury watches for men and women are always one of the first targets during burglaries : thieves also appreciate the high resale value and the practical size.


Even in everyday life, wearers can become victims of criminals. Again and again, expensive watches are stolen through skill or under the threat of violence. In addition, there is a risk of damage to your own four walls, such as a fire. Even a seemingly small bump can lead to scratches on the valuable cases made of gold, silver and co.!


A special watch insurance can protect you from these damages and dangers and at least replace your financial losses. Of course, they cannot offer a substitute for the emotional bond of your jewelry.


Accordingly, watch insurance is particularly useful for very expensive wristwatches and pocket watches or very large collections. However, such protection is not required for a simple digital wristwatch. A quick check before taking out such additional insurance ensures that your luxury watches are not already covered by household contents insurance!


Advantages & disadvantages of watch insurance

If you want to insure a watch, you have a whole range of different providers, products and additional services to choose from. Often you can even take out such insurance through the manufacturer of the respective luxury watch. Although in the end it always depends on the specific watch insurance, there are some general advantages and disadvantages.


Advantages: 

  • Protection against damage and loss. The main reason for insurance is to protect against all kinds of damage, theft and the like. With the right insurance cover, you get the value back, or at least a large part of it, in an emergency.
  • You can sleep peacefully, wear your watch with confidence and have far fewer worries. At least you know that your piece of jewelry is insured and that the damage will be compensated in the worst case.
  • Watch insurance is usually cheap. Such jewelry or watch insurance only costs you a few euros per year.


Disadvantages:

Many claims are already covered by household contents insurance, so having your own watch insurance is usually only of use to your insurance agent! In this case, it may make more sense to adjust the conditions of your household contents insurance accordingly instead of taking out new insurance.


The prices of luxury watches for men and women fluctuate and, for example, initially decrease after purchase before slowly increasing again.


Are watches covered by my household contents insurance?

When you think of household contents insurance , you might think of protection in your own apartment or house. A so-called “ external insurance ” is also often part of the standard today. If damage occurs outside your four walls , your insurance company will often step in.


But there are a lot of rules and regulations that you should follow. First of all, the question arises as to whether your watch is really part of your household goods or rather a luxury item. Luxury watches often fall into the latter category and are therefore no longer included in household contents insurance - watch insurance then makes perfect sense.


If you own one or more watches that are quite valuable but are not necessarily considered luxury watches, things get tricky. Here you should contact your household contents insurance and find out whether they are covered in the event of damage or not.


However, there are a few differences when it comes to your insurance: Your watch was cleverly stolen from your wrist and you didn't notice anything? Then it is a matter of “ trick theft ” in insurance law. If, on the other hand, you are threatened and the watch is taken from you by force (threats), this is a robbery. The " unexplained loss " is the case, you have lost your watch and no longer know how it happened. A distinction is also made between “ burglary ”, “robbery” and many other cases. 


When should you insure your watch?

A look at your existing insurance will show you whether additional insurance is necessary for your expensive watches. Depending on what is included in your home insurance and how expensive and extensive your collection is, changing your home insurance may be worthwhile. If an adjustment is no longer possible or the existing insurance does not cover your wishes, watch insurance can make sense.


Let's assume a typical collector's item. For example, an automatic wristwatch for men or women. Prices here can quickly run into the thousands. Even with "cheap" luxury watches, it's worth taking a look at your insurance policy.


At the latest when your watch reaches the price of a new car, it makes sense to have additional insurance or your own watch insurance. For example, if your existing insurance limits maximum amounts.


What benefits does watch insurance cover?

What is included in an insurance policy for your watch and which claims are excluded or limited, of course depends on the product in question. Here's a price and performance comparison to make sure you're getting the right protection for your watch. The possible services are for example:

  • Protection against damage caused by falling and dropping
  • Fire and burn damage, lightning, explosions
  • Third-party damage such as vandalism
  • Protection against various thefts, robbery, burglary etc.
  • Storm, frost, hail, flood, rockfall
  • Liquid damage from tap water, moisture and moisture
  • carelessness, self-inflicted
  • Losing and leaving
  • Material, design, manufacturing and assembly errors

 

Can every watch be insured?

A watch insurance requires a certain minimum value of your timepiece. As a rule, this is 1,000 euros - below this, no separate insurance cover is normally possible. There are also upper limits. These are usually around 100,000 euros. If you are the lucky owner of a valuable watch that exceeds this amount (there are watches that cost several million euros), you must negotiate a tailor-made solution with your insurance company.


It also becomes difficult if your watch or watch collection does not have its own serial number. Even with used equipment, it often gets complicated as many insurance companies refuse to do so. In this case, a valuation report can help you. Again, you should contact your insurance company directly and clarify the details.


Watch insurance: You should pay attention to this

Special insurance policies such as those for expensive watches always require some research and additional effort. After all, you want to make sure your watch insurance offers the right protection!


Pay attention to the increasing value of branded watches! Hopefully, your collectibles will only increase in value over time. So ask yourself whether your sum insured reflects this. Regular adjustments are essential for this.


It is therefore worth taking a close look at the insurance conditions. This is the only way to ensure that your watch is properly protected. For example, some insurance companies differentiate between the material of your wristwatch and pay different amounts for platinum, gold or steel.


Finally, an important tip: keep all documents, receipts, reports, etc. carefully. They are not only necessary in the event of damage, but also for subsequent sale. Regular appraisals can help to document the price and the price increase, especially with very expensive watches. If you have to report damage to your watch insurance company, you are on the safe side.

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