Recurring Insurance Appraisal Question

[123Blueface]

.....that continuously pops up when you buy a watch for MSRP of $9,250 that sells for $18,000 on average.

Well, the solution was easy for me. I immediately added it to my JM policy as soon as I picked it up but for $9,250 that matched my receipt. I just went a short while ago and got an appraisal for actual market replacement and until which time that the BLRO either becomes more readily available and/or drops in price, I don’t mind the piece of mind of paying to insure it for double what I paid. It will guarantee I can easily buy one if there is a loss. Eventually, I’ll reduce the coverage as warranted as JM will not pay more than it costs to replace, even if insured for more.

Simple to do. Went to a local Rolex grey dealer/jeweler. $50 later, done deal.

Now to submit it to JM.

[Odie-r]

I'm the same. Very logical solution to a (not so) unusual issue in this game. Insurance $$ are peanuts when it comes to luxury items that have grown in value!

[kauffee]

Let us know how it works out with JM. I've been thinking of doing this for my Daytona.

[123Blueface]

Originally Posted by kauffee

Let us know how it works out with JM. I've been thinking of doing this for my Daytona.

Done.
Now insured for double retail.

[droptopman]

Same here. When I was into vintage it was especially important to have updated appraisals.

[CoveWatch]

I had to go to a grey dealer to get an updated appraisal as well... gotta insure for the right amount imo

[123Blueface]

Turns out authorized appraiser for JM.
Talk about luck.

[DahMan]

If you have $35k in watches, how much to insure...

[jsausley]

Originally Posted by DahMan

If you have $35k in watches, how much to insure...

My wife's ring is $90 annually for $10,000 of coverage. I don't have my Rolex watches insured yet but I plan to at least insure the BLNR (it's shiny and more likely than my Explorer to entice pickpockets and muggers I think).

[DahMan]

Originally Posted by jsausley

My wife's ring is $90 annually for $10,000 of coverage. I don't have my Rolex watches insured yet but I plan to at least insure the BLNR (it's shiny and more likely than my Explorer to entice pickpockets and muggers I think).

I feel like an idiot, but won’t be in about 10 minutes, when I call the insurance guy.
Appreciate the input....

[DocHorton]

Originally Posted by DahMan

If you have $35k in watches, how much to insure...

Their standard policy is 1.5% of value per year.

[exador]

Originally Posted by 123Blueface

I just went a short while ago and got an appraisal for actual market replacement.

JM will not pay more than it costs to replace, even if insured for more.

In the event of loss, what’s to stop the Insurance Company from saying “We know you can buy this watch for $9,250. We don’t care how long you have to wait”.

[123Blueface]

Originally Posted by exador

In the event of loss, what’s to stop the Insurance Company from saying “We know you can buy this watch for $9,250. We don’t care how long you have to wait”.

Plenty to stop them........called a contract.
It’s a replacement cost policy.
Yes, that quote is correct but applies if can be physically located for a lower amount.
If they can find it and replace it for me for $9250, plus tax, then yes, that is all I will get.
BUT in the case of a BLRO, we know the likelihood of that happening is beyond quite rare.
So, since insured up to a higher value, they will be compelled to pay whatever it cost to replace it, up to that $18,500 amount I just raised it to. If they can find it for $15,000 brand new and deliver it, then that is all I’ll get as well.

Trust me on this, I have been a Claims Manager for 36 years and interpret policies for a living.

[123Blueface]

As an added note, what has to happen in these cases is WE must do our due diligence to stay apprised of “current market value”.
As it drops on this watch, which it eventually will, I need to make sure I monitor it and reduce my coverage as otherwise, will be paying additional premium for no added benefit.

Also, carriers like JM are replacement insurers, not cash out insurers.
I wish them luck finding a BLRO for retail to replace for a loss.

[upsidedownbelt]

JM will let you insure a watch for any amount you want as long as you have an appraisal? Appraisals on luxury items can be pretty subjective and much higher than the actual purchase price. If you buy a vintage piece at a good deal and get a gray to say it's worth 5x what you paid, then JM will let you insure it for that amount even if your receipt is for much less?

Originally Posted by 123Blueface

Plenty to stop them........called a contract.
It’s a replacement cost policy.
Yes, that quote is correct but applies if can be physically located for a lower amount.
If they can find it and replace it for me for $9250, plus tax, then yes, that is all I will get.
BUT in the case of a BLRO, we know the likelihood of that happening is beyond quite rare.
So, since insured up to a higher value, they will be compelled to pay whatever it cost to replace it, up to that $18,500 amount I just raised it to. If they can find it for $15,000 brand new and deliver it, then that is all I’ll get as well.

Trust me on this, I have been a Claims Manager for 36 years and interpret policies for a living.

[123Blueface]

Originally Posted by upsidedownbelt

JM will let you insure a watch for any amount you want as long as you have an appraisal? Appraisals on luxury items can be pretty subjective and much higher than the actual purchase price. If you buy a vintage piece at a good deal and get a gray to say it's worth 5x what you paid, then JM will let you insure it for that amount even if your receipt is for much less?

Yes, you can insure with them for any valid appraisal amount you want.
HOWEVER, if that item can be located for less than your insured amount, you will only get what it takes to replace it.

In my case, we know for now, the BLRO under $18,000 is tough to find and we also know you just cannot walk into any AD and find one. My AD only received two for the year. So in my case, I am not over insuring, yet. As this reference drops in price, good luck if I want to be paid the amount I insured it for. I’ll get the lower replacement amount. As such, it will be important I monitor the price/availability and as it drops eventually, so will my coverage limit.

[upsidedownbelt]

Interesting, thanks. I wonder how an AD responds to an insurance co. when the insurance company is looking for a hard to get reference?

Originally Posted by 123Blueface

Yes, you can insure with them for any valid appraisal amount you want.
HOWEVER, if that item can be located for less than your insured amount, you will only get what it takes to replace it.

In my case, we know for now, the BLRO under $18,000 is tough to find and we also know you just cannot walk into any AD and find one. My AD only received two for the year. So in my case, I am not over insuring, yet. As this reference drops in price, good luck if I want to be paid the amount I insured it for. I’ll get the lower replacement amount. As such, it will be important I monitor the price/availability and as it drops eventually, so will my coverage limit.

[TimingIsEverything]

I've been using JM for a couple years now. Easy to work with and I like their premiums.

I literally just asked about market value, they said it must be on the appraisal. I also like how they will work with whatever dealer or person you want to buy the watch from in the event of a loss or theft.

[DahMan]

Originally Posted by TimingIsEverything

I've been using JM for a couple years now. Easy to work with and I like their premiums.

I literally just asked about market value, they said it must be on the appraisal. I also like how they will work with whatever dealer or person you want to buy the watch from in the event of a loss or theft.

What is JM.?

[123Blueface]

Originally Posted by DahMan

What is JM.?

Jewelers Mutual.

Separate specialty insurance for jewelry.

[123Blueface]

Originally Posted by TimingIsEverything

I've been using JM for a couple years now. Easy to work with and I like their premiums.

I literally just asked about market value, they said it must be on the appraisal. I also like how they will work with whatever dealer or person you want to buy the watch from in the event of a loss or theft.

....and what luck, I go to a Jewelry Exchange and stumble on the guy that had the most Rolex and turns out to be an authorized appraiser for JM. Asked me who I was insured with as he handed me a JM jacket and information.

[MCOSUB]

I think JM has the option to replace the watch vs paying out the cash insured value.

Just read the policy and double check.

[123Blueface]

Originally Posted by MCOSUB

I think JM has the option to replace the watch vs paying out the cash insured value.

Just read the policy and double check.

Nope. They’ll fight you on cash out. Replacement is what you will get.

[123Blueface]

Just received confirmation of policy change.
I can sleep in peace that if something happens to this watch, I can go grey dealer/TS.
Now to do the same for my BLNR.

[doubleinfive]

I use JM for my SS Rolex sports watches and when I asked them to update my coverage reflecting current market value, all they needed from me was a note or an email from a reputable dealer (non AD) attesting to the value.

The dealer/jeweler I worked with sent an email to JM and my coverage was increased immediately. No formal appraisal required.

[Sal_UKSheffield]

Forget market price - how do appraisals work? For example when i purchased my sub in 2015 the RRP was £5.7k - rrp has gone up abit since then?

[hannibal80]

Many insurance companies actually go straight to the manufacturer for the watch in case of loss/theft, thus even if you lost a 16710 Pepsi the insurer would go to Rolex and get the BRLO as it’s the current equivalent. Rolex and other manufacturers keep insurance stock. Not all insurance companies do this, so you need to check your policy.


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[Calatrava r]

Most insurance companies on jewelry have the absolute right at their choosing to replace the piece. On a current production watch it makes the most sense to insure for the current retail. Insurance Companies have agreements and purchasing arrangements that the consumer can only wish for.

[123Blueface]

Originally Posted by hannibal80

Many insurance companies actually go straight to the manufacturer for the watch in case of loss/theft, thus even if you lost a 16710 Pepsi the insurer would go to Rolex and get the BRLO as it’s the current equivalent. Rolex and other manufacturers keep insurance stock. Not all insurance companies do this, so you need to check your policy.


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After 36 years as a claims manager for a very, very large insurer, I assure you that you could not be further from the truth.
We may have replacement sources we use regularly but they are subject to the same issues all ADs face of no supply. No such thing as bypassing an established retail process and going to manufacturer.

Originally Posted by Calatrava r

Most insurance companies on jewelry have the absolute right at their choosing to replace the piece. On a current production watch it makes the most sense to insure for the current retail. Insurance Companies have agreements and purchasing arrangements that the consumer can only wish for.

If it involves a readily available watch, different story. With a BLRO I assure you they will have to honor the insured amount, unless they can direct me to a source that has it readily available for the lesser amount they will pay.
.....and yes, with JM will invariably be a replacement. You won’t see any cash out.

[hannibal80]

Well damn “36 years as a claim manager”, no need to get testy! My best friend just went through this process with State Farm and the info I shared was what they told him when he lost his GMT this past fall while he was diving. If that’s not true then cool beans, either the agent was lying or my buddy was. Either way, be easy mate - no need to get all excited.


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