Reasons To Insure Your Watch & Clock

Adit Bhatnagar
Sep 6, 2024
5 min read

Insure Your Watch, HKTDC Hong Kong Watch & Clock Fair, best watch insurance

Rolex, Cartier, Omega, and Tag Heuer are among the brands known for producing beautiful and fascinating watches. For collectors, a watch is much more than a time device; it's valued for its brand, history, aesthetics, and rarity.

It is a passion that is shared worldwide. There are specific events that sell and exhibit luxury watches and antique clocks. In fact, the HKTDC Hong Kong Watch & Clock Fair (Salon de Time) is taking place this week on September 7th. This fair will attract thousands of watch enthusiasts and buyers.

Every watch collector has at least one or more priceless pieces that cost more than HK$10,000 and would be disastrous if damaged or lost. Unfortunately, many collectors store their watches at home and rarely wear them due to the countless situations that can lead to damage, loss, or theft.

Insurance is one of the best ways to protect your luxury watch or antique clock collection, but why? The article will highlight the essential reasons to insure your watch or clock in today’s world.

Reasons To Insure Your Watch & Clock

Risk of Watch Theft

Wearing a luxury watch in public is always thought of as a risk. Worldwide, there has been a rise in watch theft due to muggings or pickpocketing. It is a risk every watch owner fears due to the amount they would have to spend to replace the piece.

Your watch could be stolen without you even noticing by expert thieves and con artists. The risk of theft doesn’t mean watch collectors should never wear their watches. There are some safety steps luxury watch owners can take when wearing them in public. These steps include not posting about it on social media, avoiding high-crime streets/areas, and being alert and observing suspicious activities.

One of the best ways to recover from public watch theft is insurance. When you insure your watch, asset insurance will cover your high-value watch in case of theft. The insurance will reimburse the replacement costs of the specific piece at market value. However, the policyholder must report the crime to their local police and get a theft report to claim it from the insurance.

Damage And Loss Can Occur Worldwide

Luxury watches must be worn and enjoyed at some point. However, life is always unpredictable, and damage and loss could occur anytime and anywhere. You could be trying to squeeze through that crowded street and hit your watch against a wall or accidently drop it while travelling.

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Whether damaged or lost, luxury watches can be financially and emotionally devastating. Repairing a broken luxury watch can be very expensive, and it may never function the same again. However, this doesn’t mean you shouldn’t wear your watch on holiday or avoid taking it out of your safe.

It’s essential to take precautions, such as storing it properly in your luggage, avoiding wearing it during sports activities or crowded areas and ensuring regular maintenance to prevent severe damage.

Accidental damage or loss is another reason to insure your watch. Asset insurance will reimburse the costs of repairing or replacing the damaged or lost timepiece globally (extension). The insurance can help watch owners enjoy their collection more and stress less when accidents lead to damage or loss.

Home Insurance May Not Cover Them

Most of us believe our high-value assets are safest at home. Many watch owners store all their watches at home, in a watch box, pouch or protective case. However, this doesn’t mean the watches are safe and protected.

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Several home risks can lead to damage and loss of luxury watches and antique clocks. A natural disaster, fire, floods or theft could hit a home. In most cases, the assets will be highly damaged or completely lost. These incidents are never predictable and could occur in any home worldwide.

You may have home insurance and believe the policy will cover your precious watch or clock, but unfortunately, this may not be the case. Many home insurance policies do not cover high-value assets. Watch owners may need a separate insurance or extension, such as asset insurance.

The exclusion may not be for every home insurance policy; it is better to check with your insurance provider before it is too late.

Rising Costs to Repair and Replace

When your favourite luxury watch or grandfather clock is damaged or lost, the first thing you will want to do is repair or replace the asset. As devastating as the damage or loss is, the price to repair and replace might shock you.

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For example, the average cost to service a Rolex is USD 800, and a complete repair due to damage can cost anywhere from USD 1500 and up, depending on the complexity, model, and specific parts. These costs are constantly rising due to the rarity of parts and economic changes. The cost of servicing and repairs may equal the original price of the watch.

When a watch owner has finished their warranty year and has no insurance, they will have to pay these costs or be unable to replace the timepiece. There will regrettably be a point where you will damage your watch and may want to repair it. Hence, the rising costs are a vital reason to insure your watch and clock and benefit from the financial coverage.

Enjoy Your Asset Stress-Free

You have spent a large amount on the watch or clock and deserve to enjoy it. No watch or clock owner should sacrifice their passion and pleasure due to the possible risk of damage or loss.

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Regardless of how careful you are, there will always be a chance of damage or loss. Therefore, the best thing an asset owner can do is purchase the appropriate insurance coverage. Having the appropriate insurance provides the owner with the peace of mind of knowing their asset is protected.

Watch owners can wear their luxury watches to any event without worrying every step. At the same time, clock owners can place their beautiful pieces in their homes and worry less when someone is near them.

When Should You Insure Your Luxury Watch & Antique Clock?

As you can tell, insurance for watches and clocks is essential. Asset insurance is the best protection for high-value assets. The insurance will cover the value of the watch or clock in case of damage or loss.

When a high-value timepiece is insured, the policyholder receives the best financial coverage. The coverage allows the policyholder to enjoy their asset and repair or replace it when they face incidents.

Ideally, as a luxury watch or antique clock owner, you should be insuring your timepiece right after the purchase. However, you can insure it anytime, as long as the condition of the watch is acceptable. Insurance may not cover the timepiece if there is damage or it doesn’t pass the value limit.