Do you insure for retail or market price?

[JodyHighroller]

Hi all,

For those who own modern/in production references, do you insurance for retail (MSRP) or market price?

This isn’t another insurance carrier thread FYI. Just curious where members sit on this, and especially those who have references that have seen significant spikes. I’m aware it’ll be highly dependent on each individual’s comfort threshold.

[Jack T]

I prefer replacement cost. It covers appreciation of market value as well as replacement for discontinued models.

[Swiss Mad!]

Should the worst happen (God forbid) & you had your watches stolen, how do insurance companies replace modern Rolex watches?

If you lost a SS Daytona C for example would they say ‘We will replace it, but not for at least 10 years, if ever…..’

Or do they just pay out retail value rather than replace like for like?


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[Polar Bear]

As with all my watches, I insure for whichever value is higher
In terms of Rolex, ask your insurance company what they do in the event they are unable to source you a replacement reference
I assume they'll pay you out for what its insured for, so best insure it for market
Also pays to have that value adjusted every year or so

[28mm]

I insure with agreed upon value, which was agreed when I got the policy. I've updated last year with higher values.

[fooey]

There ain't a chance an insurer will pay out £30k for a £10k watch!

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[SS Oyster]

USAA, with whom I have all my other insurance policies, has a watch rider, which maxes out at 25% over MSRP. So disappointed they aren’t up to speed with the market.


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[KathleenL]

Ever-so-slightly (a minuscule amount) above MSRP. I have only one Rolex, a 279171-001. Lady Datejust, Everose gold and steel, fluted bezel, Jubilee bracelet, Sundust dial, purchased from an AD at MSRP in May of this year. Price including tax was $10,736.50. Insurance policy is for $11,000.00. The Sundust dial was discontinued in April of this year, and I am very lucky to have gotten it as I had my heart set on that dial. If, God forbid, it were lost or stolen, the chances of getting an identical replacement that is unworn and in mint condition would be slim to none.

[HogwldFLTR]

Jeweler's Mutual will only pay the sales price as far as I can tell. I had to submit a copy of the sales receipt for the Platona. I'll try to increase the value this year. Anyone else insure for market value with them?

[Greenwood_]

Originally Posted by fooey

There ain't a chance an insurer will pay out £30k for a £10k watch!

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That’s not the case in the Uk. With a secondhand value appraisal from a Jewellers, the insurance company will cover the watch for its market replacement cost.

[Watcheroo]

Has anyone tried Hodinkee’s insurance? Any experience with them?


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[The Kermit]

Originally Posted by Greenwood_

That’s not the case in the Uk. With a secondhand value appraisal from a Jewellers, the insurance company will cover the watch for its market replacement cost.

Yes this is the case with TH March. All mine are insured at replacement value and will update values when it is time to renewal.

[Harry-57]

Both. If a watch can be replaced like for like, because it is still in production or been superseded by something similar (Exp II, Bluesy for example), the insurance will pay MSRP. If it can't be replaced it's insured by market value, as determined by AD appraisal.

I can get a policy that gives me replacement market value on an available but hard to obtain watch as part of a high value house policy that costs several thousand pounds a year. I don't go that route.

[Harry-57]

Originally Posted by The Kermit

Yes this is the case with TH March. All mine are insured at replacement value and will update values when it is time to renewal.

Is this the grey price of a watch which is currently still on sale at MSRP but essentially unavailable, or the grey price of a watch that is no longer made?

You appear to be saying it's both. If so, T. H. Marsh will be my first call when I renew.

[Greenwood_]

TH March insures both currently available and discontinued watches at market (grey) price. You just need an appropriate secondhand valuation.

[IanV8]

Originally Posted by Harry-57

Is this the grey price of a watch which is currently still on sale at MSRP but essentially unavailable, or the grey price of a watch that is no longer made?

You appear to be saying it's both. If so, T. H. Marsh will be my first call when I renew.

I spoke to TH March last week and despite having a Euro grade 3 safe (£30,000 cash / £375,000 watches etc.) they refused to insure my collection, the value of which is well below the safe rating.

[The Kermit]

Originally Posted by Harry-57

Is this the grey price of a watch which is currently still on sale at MSRP but essentially unavailable, or the grey price of a watch that is no longer made?

You appear to be saying it's both. If so, T. H. Marsh will be my first call when I renew.

Yes it is the grey price for both. They do ask that you have a certain safe though for the amount insured eg £40k and along with the valuations.

[1William]

I have coverage with both JM and Hodinkee for my watches. For JM I have appraisals for market value and they are insured for that value. They will pay you out should you suffer a loss on a desirable Rolex that can not be sourced through an AD. My AD works with several insurance companies but told me that for Rolex and PP and other hard to get watches they are no longer able to work with insurance companies on replacements. As most know an insurance policy is a contract and if it is not covered in the contract it is not covered. Also, don't look for any additional money on a claim. It is caped by the policy.

[Harry-57]

Thank you all for that info.

[DJ2020]

I insure for MSRP for current models or appraised value for models out of production.

[JodyHighroller]

Originally Posted by Jack T

I prefer replacement cost. It covers appreciation of market value as well as replacement for discontinued models.

My policy through State Farm is for replacement cost as well, but it’s capped by whatever each piece is insured for. It’s not unlimited. You may just want to double check your policy to be sure.

Originally Posted by 1William

I have coverage with both JM and Hodinkee for my watches. For JM I have appraisals for market value and they are insured for that value. They will pay you out should you suffer a loss on a desirable Rolex that can not be sourced through an AD. My AD works with several insurance companies but told me that for Rolex and PP and other hard to get watches they are no longer able to work with insurance companies on replacements. As most know an insurance policy is a contract and if it is not covered in the contract it is not covered. Also, don't look for any additional money on a claim. It is caped by the policy.

Is there a particular reason why you don’t have all your watches with the same carrier? I’m thinking about switching over to Hodinkee myself.

[Chiboy]

I'm from a different camp. When I wore my DJ and it was the only nice watch I had, I stopped insuring it for the last 25 or so years. I figured I could absorb the loss if it was stolen. Probably saved me 2x what I spent on the watch in saved Insurance premiums.

When I got my Daytona, DSW sent an appraisal for MSRP, which at the time was way higher than market. I asked him to send me one for my purchase price. I've kept that insured and while the insurance company has boosted the insurance value with inflation, it is probably insured for 1/2 the market value. I'm ok with that, and my $700 annual premium includes my wife's 26mm gold Date. I imagine that to get it insured for market value would be around $1200 or so per year. I'm ok under-insuring it and never worry about it when I'm out and about. It's all about your risk tolerance. That's mine.

Flame away!

[Bluside]

Originally Posted by HogwldFLTR

Jeweler's Mutual will only pay the sales price as far as I can tell. I had to submit a copy of the sales receipt for the Platona. I'll try to increase the value this year. Anyone else insure for market value with them?

I had a long talk with JM about this. As we know, it's near impossible to get a replacement Rolex. They said that if they can't get one over a certain time period (don't really know what that is) they will replace it with something similar. I don't want similar. I want the models I have. I even asked my AD about this. They said they would try to help since I am a current customer, but it would still be a long wait.

I just moved all my watches off JM to Hodinkee Ins. through Chubb. They are insured at an agreed upon market value and can be replaced now with a grey dealer if needed. Hopefully, this never happens.

Just to add to this...I had updated market value appraisals on my Rolex watches through Elite Timepieces. They charge about $40 a piece.

[77T]

Originally Posted by HogwldFLTR

Jeweler's Mutual will only pay the sales price as far as I can tell. I had to submit a copy of the sales receipt for the Platona. I'll try to increase the value this year. Anyone else insure for market value with them?

I don’t have a JM policy but had a Platona and the AD was only allowed to appraise it for MSRP. Despite the face it sells for 110K secondary market and $90K wholesale.

My State Farm rep added it to my personal articles policy and said what mattered (in case of loss) was the replacement cost at that future date. The policy allows SF a reasonable period to get a comparable model. In other words, a used Platona.

Just sharing if that helps.


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[ArtNouveau]

I insured my two pieces at agreed value(market prices)with Hodinkee. While I think my AD would be sympathetic towards replacing a stolen piece, it could be a very long wait. By insuring at market price, I would have options of replacing it quicker or re-evaluating whether I wanted to start over again with something different.

[Hardhat]

I had an appraisal done on my sub and my wife's datejust. State Farm took the appraisal to insure both at replacement market value on a personal articles policy. My agent said that state farm no longer tries to source replacement watches due to the market. They just pay the policy limits. The policy also covers inflation.

[macrowatch]

As others have said, if out of production, definitely market price.

If in production, it kind of just depends. e.g. Daytona I probably do market, no date sub I do retail.

[rkny]

Hodinkee pays up to 150% of declared value, up to your max coverage. If you have one watch insured for $10K they will pay $10K max. But if you have another watch insured, for $5K, for a total of 2 watches insured at $15K, and you file a claim for the $10K watch, they will pay up to $15K for that watch if market value is $15K.

The great thing about Hodinkee is no appraisals necessary. A few clicks and you’re covered.

[brandrea]

Originally Posted by Chiboy

I'm from a different camp. When I wore my DJ and it was the only nice watch I had, I stopped insuring it for the last 25 or so years. I figured I could absorb the loss if it was stolen. Probably saved me 2x what I spent on the watch in saved Insurance premiums.

When I got my Daytona, DSW sent an appraisal for MSRP, which at the time was way higher than market. I asked him to send me one for my purchase price. I've kept that insured and while the insurance company has boosted the insurance value with inflation, it is probably insured for 1/2 the market value. I'm ok with that, and my $700 annual premium includes my wife's 26mm gold Date. I imagine that to get it insured for market value would be around $1200 or so per year. I'm ok under-insuring it and never worry about it when I'm out and about. It's all about your risk tolerance. That's mine.

Flame away!

Exact same here. In fact I got so tired of the escalating premiums that I no longer insure.

My collection is modest compared to some, but with 4 pieces, I keep one on my wrist and 3 in the bank. If I get mugged, I’m losing one watch. It would be a bummer, but I’d get over it.

[037]

Originally Posted by brandrea

My collection is modest compared to some, but with 4 pieces, I keep one on my wrist and 3 in the bank. If I get mugged, I’m losing one watch. It would be a bummer, but I’d get over it.

In that case, when are you going shopping again? Can you wear the GMT? Asking for a friend.

I insure at MSRP since the likelihood of complete loss is minimal for me. I travel with a G-Shock when going somewhere of questionable environment, which anymore seems often.