Every watch enthusiast will agree that timepieces should be worn, not just stored in a box! It doesn’t make sense to spend thousands of dollars on a luxury watch merely to keep it hidden out of an excess of caution, whether you collect timepieces as a pastime or think they make good investments.
What Your Warranty Covers
Warranties are excellent but have certain limitations and some are more effective than others. Rolex is a good example. This enduring luxury brand provides one of the best warranties in the business, covering any problems resulting from original production for five years. Additionally, Rolex offers you a service warranty. This means that any work that Rolex performs on your watch is covered by an additional two-year service guarantee if you bring it in for service prior to the end of your standard warranty period.
What Your Warranty Doesn’t Cover
Almost any alterations that you make to your watch are not covered. For instance, the majority of warranties do not cover servicing or repairs resulting from mishaps, theft, loss, wear and tear, acts of God, children mistreating your watch, etc. So, what if criminals steal it? Insurance might be a dazzling glimmer of hope in this situation, and you’ll be glad you took precautions to avoid suffering a significant financial loss.
All Insurances Are Not Created Similar
Having said that, you should invest some time in learning which sort of insurance best serves your needs. Depending on the level of coverage you choose and the cost of your watch or collection, you have a variety of options.
Your typical homeowner’s policy will often only cover jewelry, watches, and other collectibles up to a maximum of $1,000 to $2,000. Another important point is that taking your beloved watch on the road can be riskier if your homeowner’s insurance policy does not cover loss or damage while you are away from home. You should ensure your belongings are well safeguarded while setting up a floater against damage, risks, unintentional loss, theft, and “disappearance” or strange loss.
Private Jewelry Insurance
Although watch and jewelry insurers offer many more customizable options, private jewelry insurance costs roughly the same as a floater policy. Due to the fact that watches tend to increase in value over time, recovery of the item at 125 to 150 percent of the appraised value is one of the most crucial components of your insurance.
So, what happens if your Cartier Tank Louis is lost unintentionally after 20 years of ownership and is still valued at its original cost by your insurance company? You can discover your watch is gravely underfunded when you attempt to replace it if you don’t raise item recovery protection based on current market prices. Even with this protection, we advise keeping an eye on market trends for your assets and periodically revaluing them with your insurance provider.
Although purchasing private jewelry insurance may increase your spending, it is definitely worthwhile to have comprehensive protection for your prized wristwear.
Download this infographic.