Discussion
Morning
I’m after some guidance on watch insurance. My AP has previously been covered under my home insurance but the current market means it’s value now exceeds that threshold.
I spoke with a well known specialist last week and couldn’t get a policy which made sense. The watch is a fairly rare discontinued model, which drives its value. The policy required a sum assured but was such that in the event of a total loss, they would look to replace in the used market. That makes sense. The issue is that in the event they couldn’t replace with used, they’d replace with the ‘closest possible alternative’ which would likely be a newer AP model which wouldn’t be worth considerably less. Under no circumstance would they cash settle the sum assured.
Is this normal? The value is c£40k and the policy is £1.8k pa.
Also required servicing in line with manufacturers recommendation (who does that!) and a sign off on condition every two years by a competent jeweller. Are these conditions also standard?
In summary, it felt like an expensive policy full of grey areas where the insurer could contest in the event of an issue.
Thoughts welcome, thanks.
I’m after some guidance on watch insurance. My AP has previously been covered under my home insurance but the current market means it’s value now exceeds that threshold.
I spoke with a well known specialist last week and couldn’t get a policy which made sense. The watch is a fairly rare discontinued model, which drives its value. The policy required a sum assured but was such that in the event of a total loss, they would look to replace in the used market. That makes sense. The issue is that in the event they couldn’t replace with used, they’d replace with the ‘closest possible alternative’ which would likely be a newer AP model which wouldn’t be worth considerably less. Under no circumstance would they cash settle the sum assured.
Is this normal? The value is c£40k and the policy is £1.8k pa.
Also required servicing in line with manufacturers recommendation (who does that!) and a sign off on condition every two years by a competent jeweller. Are these conditions also standard?
In summary, it felt like an expensive policy full of grey areas where the insurer could contest in the event of an issue.
Thoughts welcome, thanks.
1) Do you wear it out and about in public? If you do and the value of it as a 'loss' item is of concern then insure it. Wouldn't surprise me if premium costs were 4 figures given the 'ease' at which an all risks claim could be made.
2) Do you keep it as an 'investment' locked up in a secure place and never wear it? Sell it or don't bother with the insurance if you've written off the purchase cost when you bought it.
I have a school of thought that is alien to most. If I buy stuff that is not intended as an investment or a return of cash to fund something else in the future then I don't insure beyond what the household policy offers. If I bought a watch for say £10k, had it several years, enjoyed it and then lost it etc. other than being pissed off would it change my life? Probably not, so I'm not going to pay a high price to insure it. The item going up in value since purchase doesn't alter my view as its true cost is what I paid out.
2) Do you keep it as an 'investment' locked up in a secure place and never wear it? Sell it or don't bother with the insurance if you've written off the purchase cost when you bought it.
I have a school of thought that is alien to most. If I buy stuff that is not intended as an investment or a return of cash to fund something else in the future then I don't insure beyond what the household policy offers. If I bought a watch for say £10k, had it several years, enjoyed it and then lost it etc. other than being pissed off would it change my life? Probably not, so I'm not going to pay a high price to insure it. The item going up in value since purchase doesn't alter my view as its true cost is what I paid out.
Jawls said:
Genuine question, do you worry a bit about wearing something so expensive as a daily? Fair play if not!
I have a similar value watch and I may not wear it in the summer in London. Instant cash for the scrotes and they know what they're looking at.To the OP, change your insurance company! Having a watch serviced is bizarre as an insurance condition against theft.
I would always use a broker to ensure you get the cover you actually want. There are insurers who pay the cash value of the sum assured. My watches are insured on my household policy with Groves John Westrup (stupid name, but actually part of Munich Re- 2nd or 3rd strongest insurance balance sheet in the world) broked via Aston Lark. There are of course plenty of brokers who have access to specialist insurers, but happy to send details of my broker, if that helps.
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