Question on Insuring Rolex Sports Model bought from AD

[mjwalter80]

Currently, all of my (and my wife's) watches and jewelry are insured through Jewelers Mutual. When you want to add a watch/jewelry to your policy, you basically submit a either the receipt for your purchase or an appraisal.

In addition to jewelry, my policy includes a couple DJ, a Cartier Santos and a Cartier Tank. These were all added to my policy using the receipt from the AD and if they were damaged or or lost could be replaced for approximately the same cost (give or take).

This gets a little tricky if you buy a steel sports model from the AD and the market value of the watch is much higher then what you paid. My question is two fold:

1. For the people who insure their SS sport watches that they bought at an AD, do you insure them at the cost you bought them (recoup the money you spent), or do you insure them market value (replace the watch).

2. If market value, do you turn around the second you get your new watch and pay your AD/jeweler $100 to have them appraise a brand new watch?
And how often would you have that appraisal redone to keep up with the market cost of your watch?

Thanks

[dukie748]

I have 'market appraisals' done for each piece soon after purchase.

I'm insured with JM, believe they recommend updated appraisals every 3 years.

[OrangeSport]

I'm in the UK, but surely market value is MSRP for any current model as it can be bought for that (with a wait).

Out of production models are different obviously.

[dukie748]

'Market value' is what they are going for on the secondary market.

As an example, I bought a BLRO at my AD last year, watch was $9700 + tax.

Had the appraisal done within a week - $21,295.

[mjwalter80]

Originally Posted by dukie748

I have 'market appraisals' done for each piece soon after purchase.

I'm insured with JM, believe they recommend updated appraisals every 3 years.

Thanks!

Originally Posted by OrangeSport

I'm in the UK, but surely market value is MSRP for any current model as it can be bought for that (with a wait).

Out of production models are different obviously.

Yeah, but you may never get that watch again from an AD. I would be pretty upset if I bought something from an AD, had it stolen, gotten retail price from insurance only to find out they can't replace it.

Originally Posted by dukie748

'Market value' is what they are going for on the secondary market.

As an example, I bought a BLRO at my AD last year, watch was $9700 + tax.

Had the appraisal done within a week - $21,295.

Good to know - thanks!

[Zoomerang]

When insuring with Jewelers Mutual, I'd typically have a "market value" appraisal done by Elite Timepieces (https://www.elitetimepieces.com/insu...aisalform.html) for $40. They have a quick turnaround of a couple of days and they only need pictures to develop the appraisal.

I recently switched to Hodinkee insurance and they don't require an appraisal. They also can cover you for market value of up to 150% of purchase price. I still went ahead and insured my watch for market value.

[dannyp]

I've always wondered: When it comes to replacement on a lost/stolen watch, what kind of sway does JM have with ADs for priority?

Seems they have relationships with many (most?) as an underwriter, but also as a big customer. I had one AD tell me that they were partners w/JM as a preferred replacement shop for jewelry. He'd never had JM reps contact him about a watch replacement, but for jewelry, if they contacted the store, they had top priority for their requests.

Sounds like quite a "purchase history" (plus the massive network of ADs they have genuine access to).

[TunaTuna]

If you bought a new Submariner 30 years ago for 3k, would you still insure it for 3k today? No, insure all your items for market value

[ArtNouveau]

I just recently insured my two Rolex with Hodinkee for agreed value. I declared them both at roughly the middle of present market value with no appraisal needed.

[Mendota]

I was told by my AD that if you are working with them to replace a stolen piece they give you top priority for sure and they will even help you source one out in the marketplace if it's a discontinued piece.

[S’portEye]

It depends on how much you want your premium to increase by using market value. I can see both sides.

[dannyp]

Originally Posted by TunaTuna

If you bought a new Submariner 30 years ago for 3k, would you still insure it for 3k today? No, insure all your items for market value

No, but if you bought it new and insured it at the time, JM (not sure about others) would adjust up each year to reflect current msrp.

Originally Posted by Mendota

I was told by my AD that if you are working with them to replace a stolen piece they give you top priority for sure and they will even help you source one out in the marketplace if it's a discontinued piece.

Was this specific to Rolex, or were they saying in general?

I also wonder if Rolex ever allows special orders for this purpose?

[Cool Hand]

Originally Posted by S’portEye

It depends on how much you want your premium to increase by using market value. I can see both sides.

This seems to be the crux of the issue.

[Polar Bear]

As someone with zero Rolex watches, here's what i did for my watch insurance
I went and got a market appraisal and compared it to my purchase receipt
I submitted which ever document had a higher value

[fsprow]

I use Chubb, who is great to deal with, and if a watch is stolen (only once) I used Chrono 24 and eBay to provide comparable watches to establish a value. Not an issue.

[Mendota]

Originally Posted by dannyp

Was this specific to Rolex, or were they saying in general?

I also wonder if Rolex ever allows special orders for this purpose?

I was talking to them about my OP36 which has the discontinued 3-6-9 Explorer dial. I asked about what happens if it were to ever get lost or stolen. They said they would replace it with a new OP36 of my choice or help me find one out in the market if it had to be the exact same one. I asked if Rolex has the ability to provide just the dial in situations such as this and they said to their knowledge, no. Once it's discontinued it is done.

This was a purely hypothetical conversation I had with my SA in May while they were doing the appraisal for the new OP34 I bought for my wife from them.

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[rkny]

Originally Posted by fsprow

I use Chubb, who is great to deal with, and if a watch is stolen (only once) I used Chrono 24 and eBay to provide comparable watches to establish a value. Not an issue.

Hodinkee Insurance = Chubb

[dannyp]

Originally Posted by Mendota

I was talking to them about my OP36 which has the discontinued 3-6-9 Explorer dial. I asked about what happens if it were to ever get lost or stolen. They said they would replace it with a new OP36 of my choice or help me find one out in the market if it had to be the exact same one. I asked if Rolex has the ability to provide just the dial in situations such as this and they said to their knowledge, no. Once it's discontinued it is done.

This was a purely hypothetical conversation I had with my SA in May while they were doing the appraisal for the new OP34 I bought for my wife from them.

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That’s good to know. For clarity’s sake, my reference to special order was Rolex being willing to supply an extra watch, right away and in addition to AD’s allocation, to replace a lost or stolen one.

[Mendota]

Originally Posted by dannyp

That’s good to know. For clarity’s sake, my reference to special order was Rolex being willing to supply an extra watch, right away and in addition to AD’s allocation, to replace a lost or stolen one.

Now I'm curious, so I'll email him and ask specifically. I own my own independent insurance agency, so I'll just tell him I'm interested to know in case I have clients that have losses or if it happens to me.

What does stand out in my memory is Rolex can't replace the discontinued dial on a watch that is still in the catalog. I was thinking maybe they could access those older dials since the watch itself is still in production. I keep reading about people getting service dials on older watches when they get sent to RSC so it just seemed logical to me that if RSC can replace the dial at service with the same one, why can't the factory do the same?

I'll circle back with an update.

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[streetfish]

Originally Posted by rkny

Hodinkee Insurance = Chubb

Do you pay a premium for a Hodinkee policy?


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[dannyp]

Originally Posted by Mendota

Now I'm curious, so I'll email him and ask specifically. I own my own independent insurance agency, so I'll just tell him I'm interested to know in case I have clients that have losses or if it happens to me.

What does stand out in my memory is Rolex can't replace the discontinued dial on a watch that is still in the catalog. I was thinking maybe they could access those older dials since the watch itself is still in production. I keep reading about people getting service dials on older watches when they get sent to RSC so it just seemed logical to me that if RSC can replace the dial at service with the same one, why can't the factory do the same?

I'll circle back with an update.

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Well, to be fair, the reference number did change. In fact, I question whether the old dial would even be the same size, since the watch itself shrank a bit.

Hopefully, though, a blue 36 with a 3-6-9 dial will be seen again when (ok, if) the Air King comes back as a blue dial version of the new Explorer next year.

[justjay82]

In Canada, so don’t know if that makes a difference… but I’ve asked my insurance agent this very question. The answer I’ve gotten is that I’m insured for actual replacement value; which, as we know, is not the same as MSRP.

[dannyp]

Originally Posted by justjay82

In Canada, so don’t know if that makes a difference… but I’ve asked my insurance agent this very question. The answer I’ve gotten is that I’m insured for actual replacement value; which, as we know, is not the same as MSRP.

Can't speak for Canada, nor can I speak for most US policies, but I think Jewelers Mutual is somewhat of an exception. They are the insurance company that underwrites many, many of the retail jewelers in the US, so there are a lot of existing relationships for when it comes to procuring replacements.

[Roberto Kupferschein]

That is why I change my insurance to the HODINKEE insurance, better than JM for market inflation

[JodyHighroller]

Originally Posted by TunaTuna

If you bought a new Submariner 30 years ago for 3k, would you still insure it for 3k today? No, insure all your items for market value

You’re right, but I’d say the only difference with a modern reference is that it’s still in production.

Would someone be comfortable enough insuring at market value for a watch still in production, or wait till it’s discontinued to then insure at market?

I think it all boils down to what someone wants their premiums to be.

[dkg1616]

I talked about this with the owner of my AD and he was adamant on not worrying about insuring at secondary. He said if anything were to happen they would be glad to get me what I would need at retail again with a short wait.

[dannyp]

Originally Posted by JodyHighroller

You’re right, but I’d say the only difference with a modern reference is that it’s still in production.

Would someone be comfortable enough insuring at market value for a watch still in production, or wait till it’s discontinued to then insure at market?

I think it all boils down to what someone wants their premiums to be.

Also depends on what you'd want it replaced with. If you insure something purchased BNIB from an AD at MSRP, JM will automatically update the reference and MSRP to current every year. If you're fine with receiving the current version should you incur a loss, then no reason to deviate from that system.

[padi56]

Like all insurance no matter the company they are only as good as what they pay out to, and they will always in most cases pay out the cheapest option for replacement.

[mg18]

Originally Posted by justjay82

In Canada, so don’t know if that makes a difference… but I’ve asked my insurance agent this very question. The answer I’ve gotten is that I’m insured for actual replacement value; which, as we know, is not the same as MSRP.

Hey, what insurer is this with? I was told replacement value as long as watch is available, but unlikely market if still in production for retail price.

[justjay82]

Originally Posted by mg18

Hey, what insurer is this with? I was told replacement value as long as watch is available, but unlikely market if still in production for retail price.

Chubb