Reasons Why You Should Get Insurance for Your Luxury Watches
Why You Need Coverage For Your Luxury Watches
Tips and Guidelines from our Partners at Chubb
There is therapy in keeping a healthy hobby.
Watch enthusiasts understand the sense of pride that lies behind collecting luxury and rare timepieces. Besides the sentimental value your collection provides, they often also provide investment value.
As the valuation of most luxury watches increases year-on-year, like any other forms of investment, having appropriate insurance for your collection can help protect your investment. In the case of pre-owned watches and rare luxury brands, you would also need a back-up plan for repair and replacement.
In the unfortunate event of damage, loss or theft of your collection, having comprehensive valuable articles insurance can provide the peace of mind knowing that you’re covered for the current market value of your rare and expensive timepieces.
Here's a few reasons why:
1. Watches are Attractive to Thieves
Eye-catching, hard to trace, and easy to sell; watches will always be attractive to thieves. The growing trend of luxury watches has led to the unfortunate rise in watch crimes in recent years.
This rise could be because of the increase in awareness about the value of luxury brands. It could also be due to an increase in dealers who specialize in pre-owned luxury watches.
Whatever the case, you can mitigate the risk of theft using watch registration services and insurance.
2. Homeowner's Insurance Won't Cut it
If your watch collection is worth a relatively modest amount (less than S$2,000), a standard homeowner's insurance policy should cover the loss. The problem arises when you continue to add to your collection, and the value rises to a five-figure sum or more. In addition, the low sum insured of a standard homeowner’s insurance policy may also not provide adequate cover for your actual loss.
If you have acquired a significant collection, you should consider having a valuable articles coverage policy. Such a policy requires you to list your expensive watches separately and insure them up to their market value. This allows enthusiasts who own high-value precious timepieces to have peace of mind knowing they are sufficiently covered in the event of loss.
The same can be done for those with other collections like jewelry, handbags or antiques.
3. Travel Increases the Risk of Theft and Damage
Daily wear and frequent travel would also increase the likelihood of theft, loss, and damage.
Working with a watch on your wrist may cause strain on the clasp and straps and sometimes leading to strap failure. Leaving your watch in the hotel safe may not be as safe as you’d think as well, given their portability.
When it comes to airport security screening, if you must remove your watch (depending on the advice of the security officer), you can reduce the risk of damage from the magnetizing effects of the X-ray machine, by placing it underneath your other belonging in the tray. Don’t forget to check that you’ve got all your items before leaving the area.
Watch thefts are also more common than you think. In 2019 for example, a Japanese businessman was robbed of his $1.2 million Swiss watch right outside his hotel in Paris and a tourist in Ibiza was robbed of his limited-edition Richard Mille timepiece, worth up to $1.7 million.
The risk of loss and theft lurks everywhere, that's why having an insurance policy that covers you wherever you travel gives you the peace of mind while wearing your timepiece.
Wear Your Watch with Pride
What is the point of investing in that special timepiece when you can't wear it? A Patek-Phillipe World Time or the Rolex Daytona does not belong in a stuffy safe, and it should rest on your wrist, whenever and wherever you like. You’ve worked hard to enjoy this lifestyle and with our partners at Chubb, we believe in providing you comprehensive insurance that caters to your lifestyle needs.
If you would like to find out more on how you can protect your watches and other valuable possessions, contact us at Rand Insurance for more information.