When we lose something expensive, we panic and feel hopeless. It’s an awful feeling of knowing that an asset that is valuable to you is gone. This case study focuses on how losing or a stolen watch doesn’t cause as much panic with asset insurance.
Background of Client
Our client is a young adult who has a passion for watches and occasionally saves up to invest in unique watch pieces. Collecting watches has become a popular passion in this generation. Watches are not only a reflection of social status, but also a representation of art, technology, and craftsmanship.
A great watch isn’t cheap, it is an expensive passion, but many would agree worth it. When purchasing a costly watch, it automatically turns into a personal asset. Hence, it is crucial to insure assets such as watches, jewellery, art and more.
Asset insurance provides the owner with great financial cover in case of an unfortunate situation. Therefore, the asset owners will not need to spend their own money repairing or replacing a valuable asset.
Our client had purchased his dream Tag Heuer watch for around HKD 45,000. We can imagine it was a great moment and a crucial asset to him. He wore the watch during a long flight. Unfortunately, he suddenly noticed the watch was not on his wrist when he got home from the airport.
He called the airline and airport, but they could not find it either. It is not certain if the watch was lost or stolen, but it was gone at the end of the day. In a situation like this, the asset owner feels crushed and lost. It would cost even more time saving to buy a new one and may not be worth spending another HKD 45,000. Emotionally it also brings the fear of enjoying assets in the future, which is not right.
How Asset Insurance was a Solution?
Our client was wise to add his watch to his asset insurance plan by Red Asia Insurance (with other assets). As it is a nightmare when something unfortunate happens to assets. Insurers design asset Insurance to protect your belongings from damage, loss or even theft. Insuring your assets is a crucial step in making sure that your valuables are always protected, and in a surprising event, you will be financially covered.
After the incident, the client had to file for a police report to provide to the insurer. The insurance reimbursed the total amount of the watch within ten days. Additionally, the client only paid a premium of HKD 5,000 for various assets with a total worth of HKD345,000.
Asset insurance will provide a worldwide cover for the assets and help repair or replace after unfortunate situations.
The insured will also benefit from the insurer’s expert on various asset categories. For example, when the insured has lost the main gemstone of her engagement ring. The insurer will provide her with the contacts of their jewellery experts that can repair the ring to the best quality.
A business can also use asset insurance for its goods. Many companies use asset insurance to protect their collections. The business assets could include private collections like art, jewellery, wine collections and more.