How to Get Luxury Watch Insurance – Canada

Your luxury watch is more than just an item; it can be your investment, a precious family inheritance, or it can hold sentimental value. That’s why it’s important to protect it from loss or damage. Insuring your luxury watch is the best course of action to protect your watch. Watch insurance is often recommended for high-value timepieces and valuable watch collections. In this blog, we explain everything you need to know about watch insurance in Canada.

What Are the Types of Watch Insurance in Canada?

Before insuring your watch, it’s important to know the distinction between different watch insurance types. There are two ways to get watch insurance: as a standalone jewelry insurance policy or as a home insurance endorsement. Here is the difference between the types.

Standalone Jewelry Insurance

Independent watch insurance offers full coverage against loss, theft, and accidental damage. It is more comprehensive than homeowners’ or renters’ insurance riders. Some of the advantages of having standalone jewelry insurance are that it includes global coverage, agreed value coverage, or depreciation coverage. You can purchase a watch insurance policy from a dedicated insurance company for jewelry insurance, or a department of a large insurance firm.

Home Insurance Additional Coverage

You can also add your watch to your home insurance policy as part of your jewelry collection. A standard home insurance policy may only cover watches up to about $5,000. As standard home insurance policies don’t cover luxury items, you can buy endorsements to cover your watch. A watch insurance endorsement may cover theft, loss, and accidental damage. It’s more practical to get a home insurance add-on than a separate policy, but it’s important to check the policy provisions and cover limitations to make sure that the policy covers your watch insurance needs. It is also worth noting that high-value contents insurance has broader coverage for valuable items, as part of a high-value home insurance policy.

Does My Home Contents Insurance Cover My Watch?

Contents coverage may cover your watch if it doesn’t exceed the coverage limit, which is usually $5000. If you desire more coverage, it’s better to insure your watch as a rider or scheduled item. For maximized protection, it’s better to get your cherished timepiece insured on a separate insurance policy.

What Does Watch Insurance Cover?

Watch Insurance covers these risks:

Theft: If someone steals your watch, the insurance company will cover its value, whether it was stolen at home, outside, or while you were traveling.
Mysterious loss: Mysterious loss is the most common cause of loss for jewelry. It is covered by separate watch insurance, but not by home insurance.
Accidental Damage: If your watch is broken or damaged, your insurance company can reimburse you to repair or replace it. Covered damage includes drops, impacts, or water damage.

What Kinds of Watches Should You Insure?

In general, any high-value item that might get stolen or lost should be insured, especially if it’s frequently on the move. Here are the most common types of watches to insure.

Luxury watch: A high-end brand watch may appreciate in time. Some of the popular brands that need insurance for protection include Rolex, Patek Philippe, Omega, and Audemars Piguet.
Antiques and vintage watches: Rare timepieces or those with a special history should also be insured as valuable assets.
Valuable collections: If you have a collection of high-end watches, it’s smart to insure all of them under one policy.
Sentimental watches: A family heirloom or a watch that holds sentimental value to you should be insured.

What is the Best Way to Insure Your Rolex?

The best way to insure your Rolex depends on its value and your usage. You could choose to add it to your home insurance policy and spend less. Coverage is about 1–2% of the watch’s appraised value per year and extends to worldwide coverage. However, the coverage limits for the endorsement may be less than the value of the Rolex, as some companies limit coverage to $5000-$10000. Moreover, having the Rolex as part of your home insurance means that claims you make will affect your home insurance record.

On the other hand, while having separate watch insurance is more expensive, it covers mysterious disappearances that aren’t from theft or damage, worldwide protection, and doesn’t affect your home insurance claims.

All in all, we recommend getting a home insurance add-on if you don’t use your Rolex daily and if the coverage limits are sufficient. However, if you use it a lot and travel wearing it, we believe a separate insurance policy will be more inclusive.

Should My Luxury Watch Be Insured? Why Get Insurance for Watches

We always recommend insuring your valuable watch if you want it protected against loss, damage, and theft. Watches are easy targets for thieves, as they are easy to snatch. Moreover, watches can get easily damaged or lost in everyday life. Leading a busy life, you may take it off and forget it in a bathroom, or accidentally drop it. Having insurance can help you fix it with minimal cost.

With insurance, all you have to do is pay monthly or annual premiums on time to maintain coverage. If the watch gets damaged or lost, you pay a deductible and then file a claim with your insurance company to cover the rest of the repair or replacement cost.

Where to Buy the Best Watch Insurance in Canada

How to Get Rolex Insurance in Canada

Getting watch insurance is easy in Canada. Here are the steps to follow.

Get an appraisal for your watch. This helps determine the market value of your watch so you can get the right amount of protection. You can use your current appraised value if it has been less than 2 years since the last appraisal.
Then, you can choose to add coverage to your existing homeowners’ insurance or get specific insurance. St. Andrews Insurance Brokers can help with both. We have home insurance that you can customize, and we also have specialized jewelry insurance for your luxury watch or any other jewelry, like an engagement ring or a family heirloom. We also provide fine art insurance for your art collection and other types of high-net-worth insurance.
Call your insurance broker, provide a detailed description of your watch, and the estimated value. They will give you a brief summary about coverage options and replacement cost.
Fill out the application and pay the required fees. Your watch is now protected!

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What Details Should I Discuss With a Broker When Getting Watch Insurance?

These are the details you need to provide the insurance broker.

The watch’s value based on a recent professional valuation
Any other watch documentation, like a bill of sale and a watch’s certificate, if available
Your coverage needs, including whether you need worldwide coverage and/or depreciation coverage.
Whether you have home insurance that may provide a sub-limit for the watch.
The amount of deductible you are willing to pay

Is the Watch Insurance Claims Process Easy?

Filing a claim for your watch is an easy process, provided that you act fast, document everything, and contact your broker as soon as you can.

The first thing to do when you notice that your watch is damaged is to take photos and videos. If it’s lost or stolen, you should also note down everything you remember about the incident. Then, prepare all your watch and policy documents. The most important step is to contact your insurance promptly and provide all information about how your watch got damaged or stolen. Note that in some cases, like damage from wear and tear, your claim might get declined because it is not accidental damage.

Next, the insurer will evaluate the documentation and the watch’s details. If the watch is damaged, not lost, a jewelry vendor may assess the damage to quote the replacement cost. Afterwards, you should stay in touch with the insurance broker or agent and await their offer. If the offer is suitable for you, you may accept it. If not, you may negotiate it.

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How Much Does Watch Insurance Cost?

Watch insurance usually has a fixed pricing method. The annual premium costs around 1-2% of your watch’s appraised value. For example, a $10,000 watch might cost $100-$200 per year. Note that there may be other pricing factors, like your location, the insurance company, and the watch’s value.

How to Get the Cheapest Watch Insurance in Canada

We know everyone loves to save money, so we came up with a few ways to get cheaper watch insurance.

Compare quotes before deciding on a policy. You may find that getting watch insurance as a rider is more cost-effective, or that getting a separate policy provides more value for money. Either way, you need to know which one suits your needs more.
Ensure that your watch is appraised accurately, so you can get sufficient coverage without paying more or less than you need to pay.
Ask about discounts. You may find that you are eligible for some discounts, like having security features, for example.
Compare deductibles for different policies to be aware of how much you will pay. If you can afford it, consider increasing the deductible to get a lower premium.

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5 Ways to Protect Your Watch

Protecting your watch can prevent damage and loss. With 5 easy steps, you can insure your watch is safe and can stop worrying about it.

Store the watch in a case, box, or display case. These are designed to prevent damage. When storing the watch, make sure it’s face up.
Keep the original documentation and box safe. This is especially useful if you’re a collector. A watch is worth more with the original box and papers.
Take the watch out of the box from time to time to use it, and change the battery if it is a quartz watch. Old batteries sometimes leak acid, damaging the internal components of the watch. If you don’t plan on using it for a long time, remove the battery.
Keep the watch away from magnets and electronic devices, especially if the watch is old. Magnetism can affect the watch’s accuracy and damage it in the long term.
When traveling, keep the watch in the hotel’s safe to ensure it doesn’t get lost or stolen. On your flight, keep the watch in a leather roll in your carry-on, close to you and safe.

Watch Insurance FAQs

Is my watch protected outside my home?

It depends on your policy. Some home insurance contents coverage only covers your watch at home. Adding a floater or getting a separate jewelry insurance policy usually provides protection worldwide, not just at your home.

Will I be covered if my watch is stolen?

Yes, if theft is covered as part of watch insurance, whether it is a rider or a separate policy.

Will I be covered if my watch is lost?

Insurance covers loss, whether it is a rider or a separate policy. However, if it’s a mysterious disappearance, it is usually not included in home insurance riders.

Is my watch covered for water damage?

Yes, most policies include water damage from a covered event, like a flood, for example. Review your insurance policy with a broker to learn more about what your policy specifically covers.

Is my watch covered for general repairs?

Typically, watch insurance doesn’t cover general repairs from wear and tear or routine maintenance. It only covers accidental damage, loss, and theft.

Do deductibles apply to watches?

Yes, deductibles apply to watches before the insurance company can cover repair or replacement.

Do watch insurance providers require an appraisal?

Yes, watch insurance providers require appraisals to estimate the market value of your watch and determine the right coverage options and insurance cost.

Should I insure my Cartier watch?

Yes, insuring your Cartier watch is essential to protect it from theft, loss, or accidental damage.

What is the best insurance company for high-end watches?

The best insurance for high-end watches differs, depending on your watch’s brand, value, and coverage needs. A St. Andrews broker can help you get the best coverage from the top watch insurance providers in Canada.

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