Do’s and Don’ts of Watch Insurance

Luxury watches are more than accessories; they’re investments, heirlooms, and for many collectors, key assets in a portfolio. Whether you own a single Rolex or a collection of rare pieces, proper insurance ensures your timepieces are protected against loss, theft, or damage.

But not all insurance policies — or approaches — are created equal. Here’s a breakdown of the most important do’s and don’ts to help you navigate watch insurance in 2025.

✅ DO: Get an Independent Appraisal

Many insurance companies require a professional appraisal of your watch’s current market value. This is especially important for:

• Rare or discontinued references (e.g., Rolex Daytona Le Mans Edition, Patek 5711)

• Watches that have appreciated since purchase

• Vintage pieces where retail price no longer reflects market value

🔍 Tip: Choose a reputable, certified appraiser who specializes in luxury watches. Many authorized dealers or independent watchmakers can provide documentation acceptable to insurers.

❌ DON’T: Rely Solely on Homeowner’s Insurance

Most standard homeowner’s policies limit coverage for high-value personal property, often capping jewelry or watches at $1,500–$5,000 — far below the value of a single luxury watch.

Even with scheduled personal property endorsements, some policies don’t account for market fluctuations or full replacement cost.

✅ Best practice: Work with insurers who specialize in collectibles or consider a dedicated policy (e.g., through Jewelers Mutual or Chubb Personal Risk Services).

✅ DO: Keep Documentation Organized

A proper insurance claim is only as strong as your documentation. Ensure you keep:

• Original receipts and invoices

• Warranty cards and certificates of authenticity

• Photos of each watch, including serial numbers

• Service records and appraisals

🔍 Pro tip: Update this documentation annually — especially if you’ve added pieces or if market prices have changed significantly.

❌ DON’T: Underinsure or Ignore Market Appreciation

Luxury watches can appreciate substantially, particularly rare or discontinued models. Insuring your watch for its purchase price could leave you underinsured in the event of a claim.

Example:

• A Patek Philippe Nautilus Ref. 5711 retailed for ~$30,000, but now trades above $120,000 on the secondary market.

✅ Best practice: Regularly review your coverage limits and ensure your policy reflects the watch’s current market value, not just purchase price.

✅ DO: Understand Policy Coverage and Exclusions

Not all insurance policies offer the same protection. Read the fine print carefully:

• Does the policy cover loss, theft, and damage?

• Are you protected when traveling internationally?

• How is replacement value determined: market value vs. agreed value?

• Is there a deductible?

🔍 Look for policies offering “all-risk” coverage with agreed value and no depreciation clauses.

❌ DON’T: Forget to Insure Accessories and Documentation

Boxes, papers, straps, and accessories can add 10–25% to a watch’s resale value — and are critical for collectors.

Many policies don’t automatically include these items unless specifically scheduled.

✅ Best practice: Ensure your policy explicitly covers accompanying documentation and accessories.

🏁 Final Thoughts

For many collectors, luxury watches represent one of the most valuable — and most vulnerable — assets they own. A proper insurance strategy is key to protecting that value.

By getting professional appraisals, working with specialist insurers, maintaining organized records, and understanding your coverage terms, you can safeguard your collection against life’s uncertainties.

At Investment Watches, we don’t just help clients source world-class timepieces — we also help them protect their collections by sharing best practices for ownership, storage, and insurance.