Securing Time: Your Luxury Watch Insurance Guide 2023


Protect your valuable timepieces with our comprehensive guide on luxury watch insurance. Learn about coverage options, costs, and more to avoid a big loss to your cherished collectible.

Whether you have one amazing Patek Philippe or a collection of timepieces that include Rolexes and Omegas, luxury watch insurance is likely a must-have for you to avoid a substantial setback.  Often, collectors believe that their home insurance will provide the answer if there is an unfortunate loss or theft involving a high-value watch. Unfortunately, standard home insurance policies leave some gaping holes when it comes to luxury jewelry. 

To protect your investment and close exposure gaps, insurance companies have introduced insurance products for your collector-show quality timepieces. This type of insurance provides more comprehensive coverage than typical policies, offering thoughtfully designed protection against loss, theft, and damage. With luxury watch insurance, losing your Vacheron Constantin or damaging your Cartier will be less of a nightmare.  Let’s take a few minutes to learn about how this essential coverage can help you avoid a big headache (and large financial setback) in the future!

At Notable Risk, we rely on our deep prior experience in risk management (and law and MBA degrees) to supercharge our insurance agency.  We work to provide unmatched customer service and build reliable insurance programs to count on.

If we may be able to assist you, call 888-897-4815 now or click here to schedule an intro meeting to talk about your valuable timepieces!

Key Takeaways Discussed:

What is Luxury Watch Insurance?

Luxury watch insurance provides unique coverage for high-end timepieces. These policies are designed to protect your valuable watches against losses that typically occur due to events like accidental damage or theft. When it comes to special watches, they often hold significant sentimental and monetary value. Therefore, having the right insurance in place (i.e. it’s structured for the specific investment you own) is necessary to ensure that you can repair or replace your watch if something goes wrong.

How is Luxury Watch Insurance Structured?

Luxury watch insurance often comes in the form of a personal articles floater policy (PAF) or by endorsement to your homeowners insurance. The PAF is a standalone policy that provides more comprehensive coverage than personal property protection under your standard homeowners plan. Similarly, your endorsed home insurance policy will provide more appropriate coverage for your valuable personal property, like high-value timepieces.

For those collectors that have several valuable watches in addition to your single Patek Philippe, whether you endorse your current homeowners policy or obtain the personal articles floater, there are two ways to cover them all: blanket coverage or itemized coverage.

Endorsement to Homeowners Policy

Homeowners insurance policies often have limitations on coverage for jewelry. However, you can add a rider (or endorsement) to your policy to schedule and provide additional coverage specifically for your valuable jewelry items like luxury watches. This rider allows you to list each watch individually along with its current value, ensuring that it is adequately protected.

The Personal Articles Floater

A personal articles floater is an add-on or separate policy to your homeowners, condo, or renters insurance that covers valuable items not fully protected by the standard home insurance plan. It offers broader protection and higher limits than basic policies and usually doesn’t require you to pay a deductible. More on the deductible shortly!

Coverage Options: Blanket vs. Itemized

If you want to insure multiple collectibles together, there are two main ways to do it: blanket coverage and itemized coverage. Whether you itemize or select the blanket structure, you can either include them all under one Personal Articles Floater (PAF) or add them as a rider to your homeowners insurance policy.

Blanket Coverage

Blanket coverage offers comprehensive protection for valuable assets, such as a luxury watch collection. Instead of individually listing each watch in the collection, the entire collection is covered under one policy. This simplifies the process and saves time when insuring multiple watches. One significant advantage of blanket coverage insurance is that it typically includes broader coverage options than standard policies. It can protect against risks like theft, damage due to accidents or natural disasters, loss during transit or travel, and even mysterious disappearance. The comprehensive nature of this type of insurance ensures peace of mind for collectors who have invested substantial amounts into their watch collections.  

It’s important to accurately assess the total value of the watch collection when obtaining blanket coverage insurance. Also, keeping detailed records and photographs can help aid and expedite any potential claims in case of loss or damage. Lastly, keep in mind that while blanket coverage provides great protection for the entire watch collection, certain limitations (e.g. individual or aggregate limits for your timepieces) might still apply depending on the specific terms and conditions of your policy.

Itemized Coverage

On the other hand, itemized coverage insurance provides even more customized protection for the unique needs of valuable timepieces. Whether it’s a Chopard or an Hermes Apple Watch, all of the pieces are individually listed, and its value is determined by an appraisal or valuation process to ensure that it’s appropriately covered under the policy. This type of coverage is more specific than standard homeowners or renters insurance policies, which may provide limited coverage for personal property, including watches. Like blanket coverage, itemized coverage typically covers a wide range of perils such as theft, accidental damage (including drops and impacts), fire, water damage (excluding submersion), vandalism, and even mysterious disappearance.

To get itemized coverage insurance put in place for your watches, you will typically need to provide detailed information about each one, including details like the watch make, model, serial number, etc., along with supporting documentation that may include recent receipts or appraisals. The insurance company will then assess the value of each watch based on this information and its internal underwriting data before determining the premium amount.

The Importance of Agreed Value Coverage

Agreed-value coverage insurance for watches is a type of insurance that provides full protection for the agreed-upon value of your watch in case of loss, theft, or damage. This coverage is especially useful for luxury watches that are rare or unique, and whose replacement value cannot be matched in the market. In such cases, the agreed value ensures that the payout equals the full insured amount without any depreciation consideration if any unfortunate loss occurs. 

Unlike other types of insurance that may only cover the current market value of an item, agreed value coverage ensures that you are fully compensated based on the agreed-upon worth of your watch at the time the policy was issued. This is particularly beneficial for high-value watches or rare collectible timepieces whose market values may fluctuate over time.

To obtain this type of coverage, you need to provide proof of the watch’s value through appraisals or recent bills of sale. The insurance company and you then agree upon a specific amount which will serve as the settlement or compensation amount in case any covered loss occurs.

Agreed value coverage typically results in higher premiums due to insuring against a fixed amount rather than market fluctuations (i.e. the risk transfer to the insurance company). However, if you own valuable watches and want to be sure they are fully protected financially, agreed value coverage is an important insurance investment to make.

Securing Time: Your Luxury Watch Insurance Guide 2023Your rare watch will typically require coverage that is uniquely tailored to adequately protect it

What Does Luxury Watch Insurance Cover?

Luxury watch insurance offers broad protection for your valuable timepieces. But it’s often helpful to understand what agents or insurance companies mean when they refer to “comprehensive”.  While not a universal list, here are some common types of losses that such policies typically protect against:

1. Theft: If someone steals your luxury watch, the policy can give you its agreed value.

2. Accidental Damage: This includes any accidental damage caused to your watch, such as dropping it, knocking it against a hard surface or scratching the crystal. The insurance will cover the cost of repairs or replacement.

3. Mysterious Disappearance:  Some policies may even cover situations where your watch mysteriously disappears without any evidence of theft or loss. It’s important to carefully review the terms and conditions of your specific watch insurance policy to understand exactly what types of losses are covered and under what circumstances they are eligible for compensation.

4. Fire and Water Damage: In the unfortunate event that your watch is damaged by fire or water, such as from a house fire or accidental immersion in water, insurance can help cover the necessary repairs or replacement.

5. Faulty workmanship: If your timepiece stops working because of faulty or poor repair jobs by an authorized technician, you can receive compensation for repair or replacement.

6. Traumatic events: In the unfortunate event that damage occurs from an accident involving yourself (like a car crash), most luxury watch insurances have got you covered.

7. Vandalism: If someone intentionally damages or destroys your watch out of malice or vandalism, you may be eligible for reimbursement through your policy.

8. Loss in Transit: If you are shipping your watch for repair or other reasons through an authorized company and it gets lost during transit, the insurance will compensate you for its value.

9. Loss During Travel: If you lose your watch while traveling domestically or internationally, whether it’s misplaced or stolen during transit or at your destination, watch insurance can provide reimbursement.

Of course, we have to warn that it’s important to carefully review and understand the terms and conditions outlined in your specific watch insurance policy to know exactly what types of losses are covered as well as any limitations that may apply.

Are There Any Exclusions To Consider When Purchasing Luxury Watch Insurance?

While your starting point may be to review what is included under watch insurance policies, it’s equally important to know what is excluded. Even though the coverage is typically “comprehensive” in nature, there will always be some situations that are not covered. Here are ten typical exclusions to keep an eye out for:

1. Wear and Tear: Most watch insurance policies do not cover damage caused by normal wear and tear, such as scratches, dents, or fading of the watch’s appearance over time.

2. Negligence: If you accidentally damage or lose your watch due to negligence, it may not be covered under your policy. Examples include leaving your watch unattended in a public place, exposing it to extreme conditions without proper protection, or failing to take other reasonable precautions to protect it.

3. Intentional Damage: Any intentional damage caused to your watch will likely not be covered by insurance. This includes purposefully scratching, breaking, or tampering with the timepiece.

4. Cosmetic Changes: Insurance typically does not cover cosmetic changes made to the watch after purchase, such as adding diamonds or altering its appearance in any way.

5. Mechanical Failure: Some policies may exclude coverage for mechanical failures or malfunctions of the watch’s internal components, including movement issues or complications arising from manufacturing or design defects.

6. Losses Outside Policy Territory: While some carriers may provide worldwide coverage, in other cases, if you travel internationally and experience loss or damage outside of the designated territory specified in your policy, it may not be covered unless you have international coverage added to your plan.

7.  Outside Policy Limits: It is essential to review your policy carefully to understand any limitations on coverage amounts. If the value of your lost or damaged watch exceeds these limits, you will only receive compensation up to the specified maximum amount.

8. Unauthorized Repairs/Modifications: Any repairs or modifications made by unauthorized individuals can void your insurance coverage for future claims related to those alterations.

9. War and Terrorism: Many insurers exclude losses caused directly by war-related activities or acts of terrorism from their standard policies unless specific additional coverage has been purchased separately.

10. Gradual Damage/Maintenance Issues: Insurance typically does not cover gradual damage resulting from poor maintenance practices like failure to service your luxury watch regularly or neglecting necessary repairs that could have prevented further damage.

Of course, we have to warn you that these exclusions can vary depending on your specific policy and insurer; therefore, always carefully read through your policy documents and consult with an insurance professional if you have any questions.

Warranties vs. Insurance: Don’t be Confused

It’s important to understand the difference between a “watch warranty” and “watch insurance”.

A watch warranty is provided by the manufacturer or retailer, and it only protects against defects in materials or workmanship for a specific period of time. If your watch stops working due to a manufacturing defect within the warranty period, the manufacturer will repair or replace it at no cost to you.  On the other hand, watch insurance offers broader protection beyond just manufacturing defects. It covers accidental damage (such as dropping it), theft, loss, and damage caused by natural disasters like floods or fires. Unlike a warranty, insurance policies are annual contracts that require regular premium payments.

While both options offer some level of protection for your watch investment, there are key differences worth considering:

1. Coverage: A warranty only covers manufacturing defects during a limited timeframe. Insurance extends coverage to include accidental damage and various types of losses throughout its policy term.

2. Cost: Warranties are usually included with the purchase price of a new watch at no extra charge, but they often have limitations in terms of what they cover. Watch insurance requires paying an annual premium based on the value of the timepiece and desired coverage limits.

3. Duration: Warranties generally last for one to five years from the date of purchase, depending on brand and model-specific conditions. Insurance policies renew annually unless canceled before expiration.

4. Claims Process: With warranties, you need to contact the manufacturer or retailer customer service and follow their instructions. Insurance claims are usually handled by a third-party insurance company, requiring you to submit a claim form with relevant documents.

The main takeaway is that warranties cover manufacturing defects within a limited timeframe, while watch insurance provides more comprehensive coverage against accidental damage, theft, loss, or other unforeseen events throughout the year and renewals.

Why homeowners insurance policies don’t provide adequate coverage for luxury watches

Many people mistakenly assume that their home insurance policies or personal umbrella will adequately protect their luxury timepieces in case of damage or loss. However, these policies often have low coverage limits, limited coverage for specific losses like theft, and less favorable settlement procedures to determine compensation. Additionally, deductibles under homeowners insurance can significantly reduce the amount you are reimbursed. So, while many people believe their valuable timepiece is covered by your homeowner’s policy, it may not be the case.

Personal Property Sub-Limits

When you analyze your homeowners insurance, it’s important to understand the concept of sub-limits for personal property coverage. Sub-limits refer to specific limits set by insurance companies on certain categories or types of losses for personal belongings within your home. While your overall homeowners policy may provide coverage for personal property, such as antiques, sporting equipment, and electronics, there may be sub-limits that apply to certain items.

These sub-limits typically vary depending on the insurer and the specific policy you have. For example, let’s say your policy has a total personal property limit of $200,000. However, there might be a sub-limit of $1,500 for theft of any jewelry (i.e. watches) — and, statistically, luxury watches are unfortunately targeted by thieves.

This means that if you were to make a claim related to your stolen luxury watch from your hotel room and the value exceeds the $1,500 sub-limit (e.g., a stolen Omega worth $10,000), you would only receive compensation up to the specified sub-limit amount from your insurance company. In our example, there would be a gap equal to many thousands of dollars, and this is before the application of your home insurance deductible.

So, it’s safe to say that the insurance coverage was not appropriate (at all) in this real-life example!

Narrower Causes Of Loss Covered

Under standard home insurance policies, there are important causes of loss excluded from valuable personal property coverage. A few of the key limitations include:

Mysterious Disappearance

If your valuable Tag Heuer can’t be found and there is no explanation, this is often referred to as mysterious disappearance.  Under the personal property portion of home insurance policies, there is typically an outright exclusion for this cause of loss. This means that if you cannot provide a clear explanation or evidence of how your belongings disappeared, your insurance may not cover the loss

Geographic Limitations

If you vacation abroad with an Audemars Piguet and it is unfortunately stolen, this type of loss is generally excluded from the personal property section of your home insurance policy. While certain luxury home insurance companies like Chubb, Vault, or Pure offer worldwide coverage,  most homeowner’s insurance plans don’t extend beyond U.S. borders.

Missing Agreed Value Settlement Amounts

In the majority of homeowners insurance policies, unless there is a specific endorsement, personal property losses such as collector watches are typically valued at either their actual cash value or replacement cost. The former considers depreciation and may result in a lower settlement amount based on the current market value of the rare timepiece. On the other hand, replacement cost coverage does not account for depreciation but may still not fully reimburse collectors for what they believe is fair compensation.

This is where agreed value coverage becomes important. With this type of coverage, if your watch is lost, stolen, or damaged, you will receive the full amount specified in your policy rather than its current market value.

In fact, many watch insurance plans will go a step further and also allow up to 150% extended coverage, above the agreed value amount, for market and inflation increases. This means that if your ever-increasing Audemars Piguet Royal Oak suffers a loss and the then-value has increased above the original value agreed upon between you and the insurance company, you will still have compensation available up to an additional 150% of the initial agreed amount.

The Deductible Problem

When it comes to homeowners insurance, people have to select a deductible amount. A deductible is the amount you pay out-of-pocket for any claim before the insurance company starts to cover the rest of the expenses. This is not an issue if the damage is to the structure of your home because the loss suffered can outweigh the deductible. However, when it comes to personal property, like a watch, the deductible can become problematic.

It is important to note that the coverage limit for jewelry may already be restricted by your home insurance policy’s sublimit in case of theft, as previously explained. Even the overall personal property limit under your standard homeowners insurance plan may still present an issue once the deductible comes into play.

For instance, let’s say you inherit a Rolex worth $7,000 from your uncle and soon after file a claim related to a fire that damages your sentimental timepiece. You may think it’s worth it to file a claim since $7,000 is a substantial amount of money to recover. But once you call your insurance agent, you’re reminded that your home insurance policy includes a $5,000 deductible. After the effort to file a claim, you will only recover $2,000, and the rest will be your net out-of-pocket to replace your watch. While you can file a claim in this situation, you have to consider the impact that this claim will have on your insurance score and later renewal pricing (in exchange for the $2,000 recovery).

Deductibles can present an impediment of some sort to recover personal property under your homeowners insurance policy.

Therefore, it’s a good idea to find an alternative that may work better. This may mean finding a high-value insurance carrier that waives deductibles or introducing a personal articles floater (which is often without a deductible!).

Securing Time: Your Luxury Watch Insurance Guide 2023Before you shop for your next timepiece, make sure to have the right insurance policy in place to avoid gaps in coverage

The benefits of luxury watch insurance vs. homeowners insurance

As we have mentioned previously, many people mistakenly believe that their homeowners insurance policy provides sufficient coverage for their valuable watches. However, as our previous examples have shown, this may not be the case.

Luxury watch insurance provides distinct advantages over typical personal property coverage under homeowners policies. To avoid any financial setbacks, it is important to understand the differences between these two types of coverage. So let’s compare them side by side for a clear takeaway.

Luxury Watch Insurance Homeowners Insurance
Deductibles No or low deductibles are available. Tends to have higher deductibles which can limit settlement amounts.
Sub-limits Covers the full appraised value with no sub-limits for specific categories like jewelry or watches. Frequently imposes low sub-limits (e.g. $1,500)  for some causes of loss like theft of valuable items such as luxury watches.
Worldwide Coverage offers  Offers global protection against theft and accidental loss/damage. Often limits coverage geographically within the U.S.
Agreed Value Coverage Payouts are based on agreed values rather than actual cash or depreciated value at the time of loss. May only cover actual cash value depreciating over time.
Mysterious Disappearance Covers losses even when the cause isn’t clear (e.g., lost while traveling but no sign of theft). Oftentimes doesn’t cover losses without proof of theft or accident.
Higher Limits Offers very high limits of coverage for individual items or collections (e.g. $1.0 million or more). Limits on personal property (which are a smaller percentage of your home’s dwelling coverage) may not fully cover high-value watches.

It’s fairly clear that when it comes to covering your high-end timepieces, luxury watch insurance outperforms homeowners insurance!

What documentation is needed to insure luxury watches

Insuring your luxury timepiece requires some work upfront while completing applications. There are certain documents and information that insurance companies typically require to effectively underwrite your watch insurance.  As the values rise above certain thresholds (e.g. $25,000 – $50,000) often the requirements are a bit more numerous or particular — but well worth it!

The importance of appraisals and bills of sale

When you want to insure your valuable watches, obtaining an accurate appraisal is worth your time and money. It may be required for older items in your collection where there is no recent purchase receipt. An appraisal provides a detailed assessment of your timepiece’s value, which helps determine the right coverage and premiums for your insurance policy. It can also speed up what is not always an enjoyable claims process!

Certified appraisers who specialize in watches can provide you with a reliable appraisal for insurance purposes. They have research and knowledge of different brands and models across different price ranges, making it important to choose a recognized appraiser with specific experience in valuing high-end timepieces.

The appraiser will carefully examine your watch, analyzing various factors such as brand, model, condition, age, rarity, and any unique features or complications. The review will also consider your watch’s physical condition, including the case, dial, hands, crystal, movement mechanism (or caliber), and bracelet or strap quality.

At times, purchase receipts or repair records may be requested to verify authenticity and provenance. Once the review is complete, you get a detailed report with all the relevant information about your watch and the current estimated replacement value.

Once you have it, you should keep the appraisal report in a really safe place (away from the basement floor and your active dog) along with other essential documents related to your insurance policy, as this report now serves as proof of ownership (among other helpful things). It allows underwriters to quickly and accurately assess risk to be able to provide your coverage. As mentioned, a recent bill of sale can often eliminate the need for an appraisal if you recently purchased your luxury watch.

Maintaining receipts, documents, and photos

You should keep all purchase receipts in a safe place (we suggest keeping copies online in a secure, multi-factor-authenticated cloud account — we can help with this at Notable Risk!) as they help verify ownership in case of loss or theft. Photos are crucial too because they provide visual proof to support descriptions given during claims processing.  Clear photographs that showcase each piece of jewelry from multiple angles are important for documentation purposes. Make sure to capture any distinguishing characteristics or marks on the pieces.

Perhaps you have an Audemars Piguet or Cartier diamond watches. If you have certificates or grading reports from reputable laboratories such as GIA (Gemological Institute of America) or AGS (American Gem Society), depending on the value threshold, you may be asked to provide these documents along with your insurance application.

Regular Appraisal updates

Luxury watches often appreciate in value over time due to factors such as rarity or desirability among collectors. Because insurance coverage limits are based on appraised values at the time policies start, these valuations must stay updated every few years, particularly when you don’t have the benefit of the 150% inflation rider noted above. Experts recommend getting new appraisals every two to three years, especially for high-value items with volatile markets like vintage Rolex models or where alterations have been made to the piece itself (e.g., restoration).

What if you don’t have an appraisal?

If your luxury watch is under a certain dollar threshold, you might not need an appraisal. However, having one can still be beneficial for establishing value and ensuring appropriate coverage. Also, as noted earlier, if your timepiece was purchased recently, insurance companies will often allow you to submit an invoice in place of an appraisal.

The importance of inventory lists

Creating an inventory list helps keep track of all items insured under your personal articles floater policy. This record should include descriptions, photos, appraisals, or bills of sale as well as the location where each item is typically stored.

Maintaining a comprehensive inventory has some big advantages. Among others, it can simplify filing claims in case any issues arise with your collection and also makes it easy to update your insurance when new timepieces are happily added to the collection.

Securing Time: Your Luxury Watch Insurance Guide 2023Home Safes Can Reduce Losses, Create Competitive Applications, and Potentially Reduce Premiums

Safety and security of luxury watches

Securing your precious timepieces is no small task. Insurers understand this, which is why they may require certain safety measures for watches over a particular value. These requirements are in place to protect both you and the insurance company from potential loss.

Storing Luxury Watches at Home

If you’re not wearing your high-value watch, it should be stored safely away. Many insurers suggest using a home safe or even a bank deposit box for these valuables.  Insurers typically ask that safes be either wall-mounted or floor-secured types.

This means the safe needs to be bolted down securely so burglars can’t simply carry it off with all its contents inside. As well as being secured physically, there’s also a need for strong access control like codes or unique keys. SafeWise provides an excellent review of some of the best home security systems available, including details about their various features such as codes and keys.

Credits For Safely Stored Watches

In addition to providing protection, storing your valuable timepiece in a secure location could give you financial benefits too. Some insurance companies offer credits if you keep unworn watches locked up in approved safes when they aren’t on your wrist.

Security Questions for Luxury Watch Insurance

When filing for coverage on your high-value watches, you should anticipate being asked a set of questions on your application associated with safety. These might include whether you have full-time staff in the home or if there’s a 24-7 remote-monitored alarm system installed against burglary and fire threats. Chubb Insurance and AIG’s Private Client Group are highly respected national insurers that have specific requirements when it comes to protecting high-value items, like your luxury timepiece.

Typical Claims Scenarios Covered by Luxury Watch Insurance

Although safes and alarms can help reduce the risk of loss, there are still a significant number of claims filed each year against luxury watch personal articles floaters. Let’s take a quick look at five real-life claim scenarios that these policies cover.

Theft of the Watch

One unfortunate reality is theft, where someone could forcefully take your high-end timepiece. In such cases, the insurance company offers compensation for its worth so that you can obtain a replacement.

Accidental Damage or Breakage

Accidents frequently occur to watches. For example, an accidental trip and fall may cause the dial to break. When this type of accident occurs, the policy will cover the costs of repairing it appropriately.

Mysterious Disappearance

You might have misplaced it somewhere but can’t remember where — it’s simply a common case of an unexplained misplacement. This isn’t typically covered by homeowners’ insurance, but luxury watch insurance offers protection in such situations.

Fire Damage

Your high-end timepiece isn’t immune, like other contents, to fires that may strike your home. The damage caused by such an unfortunate event is generally covered by your luxury watch insurance policy.

Damages During Travel

If you bring your collectible with you while traveling and it gets damaged or lost overseas, it will typically be covered by personal articles floaters provided by reputable high-value insurers such as Chubb, AIG, and Pure Insurance. Luxury watch insurance plans usually offer worldwide coverage to ensure protection wherever you take your Patek Philippe.

How Much Does Luxury Watch Insurance Cost?

We saved the best for last! The cost of insuring a luxury watch can vary greatly — not the most popular answer of course. Several factors influence the premium costs.

Factors Impacting Premium Costs

Luxury watch insurance isn’t one-size-fits-all. It’s tailored to each individual’s needs and circumstances. Here are 10 factors that could impact your premium:

1. The type and brand of the watch: Certain brands or types of watches may have higher insurance premiums due to their rarity, collectability, or high market demand.

2. Value of the watch: The higher the value of your watch, the more expensive it will be to insure. Luxury watches and rare timepieces typically have a higher premium due to their increased worth.

3. Type of coverage: The level of coverage you choose for your watch will affect the cost. Comprehensive coverage, which includes protection against theft, damage, loss, and even mechanical breakdowns, will generally be more expensive than basic coverage options.

4. Deductible amount: The deductible is the amount you must pay out-of-pocket before your insurance kicks in. Opting for a lower deductible will result in a higher premium since there is less risk for you as the policyholder.

5. Location: Where you live can also impact insurance costs for your watch. Areas with high crime rates or prone to natural disasters may have higher premiums due to an increased risk of theft or damage.

6. Security measures: If you have security measures in place such as alarm systems or safes specifically designed for storing valuable items like watches, it can potentially reduce your insurance costs as they mitigate risks associated with theft or loss.

7. Personal factors and claims history: Your credit score and claims history play a role in determining your insurance premium.  If you’ve made previous claims on other policies (such as home or auto), insurers may consider this when calculating premiums for your watch insurance. 

8. Age and condition of the watch: Older watches or those in poor condition might attract higher premiums because they could be more susceptible to damage or require costly repairs/replacements.

9.  Coverage limits and policy add-ons: Different coverage limits and optional add-ons like worldwide coverage or accidental damage protection can affect your overall premium cost.

10. Insurer’s underwriting criteria: Each insurer has its own set of underwriting criteria that determines how much they charge for different types of coverage based on various factors such as their overall risk appetite and market conditions at any given time.

It’s very important to note that these factors may vary depending on the specific insurance provider and policy terms.

Typical Watch Insurance Premiums

Estimated premium costs for typical watch insurance can vary depending on several factors (we told you earlier we had to warn you that these are estimates only and each situation is unique!).

Generalizing is difficult because several factors come into play to determine your premium — things like your location, credit and insurance score, the value of the watch, its brand, and model, as well as the coverage options selected.

But, you need some high-level idea, so here’s the drum roll: On average, watch insurance premiums are affordable and may range from $100 to $500 per year. However, it is important to note that this estimate may not apply to all cases and individual circumstances (e.g. a rare Patek Phillipe valued at $80,000) will greatly impact the final cost.

Like other insurance policy types, however, the good news is that some watch insurers offer discounts or credits. Let’s take a look at how this works next.

Potential Credits That May Reduce Your Premiums

Beyond these main drivers of premium costs, there are several credits available that may help lower your luxury watch insurance costs. They are offered by insurance companies as a means to convince customers to purchase watch insurance policies through them. The amount of credit offered may vary depending on factors such as the value of the watch, its condition, and any additional coverage options chosen.

In some cases, customers may be eligible for multiple credits if they meet certain criteria set by the insurance provider.

Ten Typical Credits to Save Money

Some policies may provide a one-time credit at the time of purchase while others may offer recurring annual credits for policy renewals. Either way, here are ten potential credits to look out for when purchasing watch insurance:

1. No Claims Bonus: If you have not made any claims on your watch insurance policy, you may be eligible for a no-claims bonus. This can result in a reduction in your premium or an increase in coverage.

2. Multi-Watch Discount: Insuring multiple watches under the same policy can often lead to a multi-watch discount. This allows you to save money on premiums while ensuring all your timepieces are adequately protected.

3. Security Measures Credit: Taking steps to enhance the security of your watches, such as using secure storage facilities or bank safety deposit boxes, may qualify you for a security measures credit. This credit can lower your insurance costs by reducing the risk of theft or damage.

4. Loyalty Credit: Many insurers offer loyalty credits to customers who have been with them for an extended period without any lapses in coverage. These credits reward customer loyalty and can result in reduced premiums or additional coverage benefits.

5. Professional Association Discount: Some insurance providers offer discounts to members of specific professional associations related to horology or luxury timepieces. Being part of these associations could make you eligible for exclusive discounts on watch insurance policies.

6. Automatic Payment Credit: Setting up automatic payments from your bank account might earn you an automatic payment credit, resulting in discounted premiums as it ensures timely payments and reduces administrative costs for the insurer.

7. Security System Installation Credit: Installing approved safes or security systems like CCTV cameras as well as remote monitored burglar alarms specifically designed for watches might entitle you to receive this credit which will reduce the cost of insuring your timepieces.

8. Good Credit Score Discount: Maintaining a good credit score can sometimes qualify you for a discount on your watch insurance premium. Insurers consider individuals with higher credit scores to be less risky and may offer lower rates as a result.

9. Bundling Discounts: Combining different types of insurance (such as home and auto) with watch insurance from the same provider could make you eligible for bundling discounts, resulting in reduced premiums for all policies.

10. Increased Deductible: Raising your deductible can lower your monthly premium, but it also means that you will have to pay more out of pocket in case of an incident.


You have invested too much into your valuable timepiece to ignore the risks that unfortunately accompany your proud ownership. Luxury watch insurance is a powerful risk mitigation tool to reduce big exposures associated with valuable timepieces, whether it’s due to loss, theft, disappearance, or damage. This special coverage, aimed at watches, ensures that your Patek Phillipe and Rolex watches are adequately protected where your homeowners insurance leaves off.

Don’t take unnecessary risks with your prized collection.  Work with an insurance agent to obtain luxury watch insurance tailored to your individual needs and proud investments.


DISCLAIMER: The information provided in this blog is for general educational purposes only and no other purpose whatsoever and it is not regularly updated. Neither this blog nor any of its contents (express or implied) should be considered legal, financial, health, or other professional advice. It is essential to consult with your own advisors regarding any matters discussed in this blog post or elsewhere. Notable Risk LLC and its owners, members, managers, directors, officers, partners, consultants and similar entities do not make any representation or warranty regarding the accuracy or completeness of the information presented in this blog post or elsewhere.