Insurance Valuation

[jlb2]

I have a 2016 Stainless Steel Daytona (116520) that is currently insured, but I want the policy updated. These aren't made anymore and the "market" (value of these) is around 26-30,000.

High level conversation they would provide a "valuation" quote of about 13,000 which if insured at that level, I couldn't even buy half of one if something happened to mine.

Recommendations to get a "value" / "appraisal" around that 30,000 mark?

Anyone else go through this? Thanks!

[Mystro]

Simple, get a independent jewelry appraisal.

[Grapenut]

Independent appraisal is the best bet.

I am not insured with them, but a few posts discussing Hodinkee/Chubb policies mention an insured value which can be market value with no need for appraisal. Could look at them if having trouble getting an update appraisal. You do have to upload a picture of the watch in the pricing segment. I am sure someone will correct me if I am far off.

[Token74]

My insurance company simply asks me what I want to insure my watches for and that dictates how much I pay.


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[sunnygps]

OP - search the forum here and you will come across a post with the link/name of a company who does online appraisals. You don't have to send your watch anywhere as it is probably done by uploading pictures, etc.

Or, just go with Hodinke/Chubb as they do not require any appraisals and will insure at the market rate. I have done this with Chubb and had to upload a picture of the watch.

[vinny84]

Just signed up for Hodinkee insurance this past Friday for the new year. Very easy and simple process, no serial # or appraisals required. Just type in your info, your agreed value price and pay for the year.

[malba2366]

Originally Posted by Token74

My insurance company simply asks me what I want to insure my watches for and that dictates how much I pay.


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Homeowners insurance companies (in the US) typically do not let you do that...they either want an appraisal or they will insure at the price you paid.

[TheVTCGuy]

This is a very good question, I am in a similar boat. I purchased my Sub at the AD, paid… whatever, $9,500. If it is ever lost or stolen that is all the insurance company will pay, they are going off the receipt from the AD. We all know I could not replace it for that amount, but the insurance company will only cover the MSRP that I paid. However, I had an 116610 appraised a while ago, by an independent, and they insured it for 15 (or whatever it was). They replied that since that watch was no longer in production, they would cover the higher amount, but since my 126610 is a current model, only the MSRP.

I don’t know, I guess this makes sense… Does it?

[SS Oyster]

USAA will (regardless of appraised value) only insure up to 25% over list price. Other options are far more expensive, but you can be made whole. Wonder who has actually received such a payout though upon loss. Anyone?


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[JodyHighroller]

Originally Posted by SS Oyster

USAA will (regardless of appraised value) only insure up to 25% over list price. Other options are far more expensive, but you can be made whole. Wonder who has actually received such a payout though upon loss. Anyone?


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Danny posted a thread on here last week with Hodinkee/Chubb paying his claim within six days of filing and for a watch not yet on his policy. Lightning speed especially during the holidays.

[77T]

Originally Posted by TheVTCGuy

This is a very good question, I am in a similar boat. I purchased my Sub at the AD, paid… whatever, $9,500. If it is ever lost or stolen that is all the insurance company will pay, they are going off the receipt from the AD. We all know I could not replace it for that amount, but the insurance company will only cover the MSRP that I paid. However, I had an 116610 appraised a while ago, by an independent, and they insured it for 15 (or whatever it was). They replied that since that watch was no longer in production, they would cover the higher amount, but since my 126610 is a current model, only the MSRP.

I don’t know, I guess this makes sense… Does it?

That is common when agent quotes insurance rate for a piece. The issue comes when filing a claim.

We all should consider the fine print - for example, the policy terms are one thing when you initially buy coverage - but the claim may come years later when a loss occurs. By then, the reimbursement terms in your fine print may have changed.


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[vinny84]

Originally Posted by JodyHighroller

Danny posted a thread on here last week with Hodinkee/Chubb paying his claim within six days of filing and for a watch not yet on his policy. Lightning speed especially during the holidays.

Good to know!

[Thanos]

Most insurance companies will not pay 'market' value period hence an appraisal for 'market' value is useless for the most part.
.
Hodinkee I believe allows for 150% of value on SOME models. Not all.

[JodyHighroller]

Originally Posted by Thanos

Most insurance companies will not pay 'market' value period hence an appraisal for 'market' value is useless for the most part.
.
Hodinkee I believe allows for 150% of value on SOME models. Not all.

They allow 150% on all. The 150% depends on your total policy insured though, so if you only have one watch insured than this won’t apply.

You need an appraisal for anything over $100k for Hodinkee. If your insured piece is right below the threshold, but at time of loss was worth more than $100k you still won’t need an appraisal despite exceeding that $100k level.

[RDT-G23]

I'm with State Farm. While they do a nice job of escalating yearly for inflation, insured value starts at appraised (list) price. This is a problem for my watches, particularly the one that I paid grey for, my 126719BLRO - in terms of what I'd be out of pocket. We have a good amount of jewelry on the policy. I may look into splitting my watches from the jewelry and insuring the watches with Hodinkee; it seems better suited.

[vesnyder]

I'm with State Farm. While they do a nice job of escalating yearly for inflation, insured value starts at appraised (list) price. This is a problem for my watches, particularly the one that I paid grey for, my 126719BLRO - in terms of what I'd be out of pocket. We have a good amount of jewelry on the policy. I may look into splitting my watches from the jewelry and insuring the watches with Hodinkee; it seems better suited.

I am with State Farm and am considering Hodinee for my watches as well.

[TheNguyener601]

Originally Posted by malba2366

Homeowners insurance companies (in the US) typically do not let you do that...they either want an appraisal or they will insure at the price you paid.

That’s not true. My homeowners insurance (Safeco) let me ensure my fiancée engagement ring like that. Told them it was appraised at 22k, and they didn’t care to even see the appraisal. They said if it isn’t 50k+ they don’t care


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[Onequik135i]

Originally Posted by TheVTCGuy

This is a very good question, I am in a similar boat. I purchased my Sub at the AD, paid… whatever, $9,500. If it is ever lost or stolen that is all the insurance company will pay, they are going off the receipt from the AD. We all know I could not replace it for that amount, but the insurance company will only cover the MSRP that I paid. However, I had an 116610 appraised a while ago, by an independent, and they insured it for 15 (or whatever it was). They replied that since that watch was no longer in production, they would cover the higher amount, but since my 126610 is a current model, only the MSRP.

I don’t know, I guess this makes sense… Does it?

Who do you use for insurance out of curiosity? I’m with Hodinkee/CHUBB for the past year & have my 126610LN insured with them for a greater amount than the $9500 I paid back in April.

[wchbos]

I just went with Hodinkee. As others have said, you can put in a market value. It it is too high, they won't insure it but for my Rolexes everything went through fine. The process is almost too easy.

[mml4]

Are the rates per thousand with Hodinkee/Chub competitive with usual carriers like State Farm?

[NachoNeal]

Originally Posted by TheNguyener601

That’s not true. My homeowners insurance (Safeco) let me ensure my fiancée engagement ring like that. Told them it was appraised at 22k, and they didn’t care to even see the appraisal. They said if it isn’t 50k+ they don’t care


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I've got Safeco too and that's what I was also told.
Anything under 50K and they do not require an appraisal.

[mml4]

Originally Posted by TheNguyener601

That’s not true. My homeowners insurance (Safeco) let me ensure my fiancée engagement ring like that. Told them it was appraised at 22k, and they didn’t care to even see the appraisal. They said if it isn’t 50k+ they don’t care


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Until you put in a claim! Unless you have a GIA certificate/survey or it's equivalent they will tell you about your appraisal being "retail" and their ability to replace it with one thats equivalent because they can get it at wholesale.
They don't "care " because they base their premium on what you provide them in terms of a receipt and or appraisal. The higher the "value" the higher the premium.
If spending a substantial amount of money on a solitaire diamond you should not consider the purchase without a GIA certificate. The certificate is much more important than an appraisal if you should experience a loss.

[TomLou]

Originally Posted by jlb2

I have a 2016 Stainless Steel Daytona (116520) that is currently insured, but I want the policy updated. These aren't made anymore and the "market" (value of these) is around 26-30,000.

High level conversation they would provide a "valuation" quote of about 13,000 which if insured at that level, I couldn't even buy half of one if something happened to mine.

Recommendations to get a "value" / "appraisal" around that 30,000 mark?

Anyone else go through this? Thanks!

Go to an AD who knows current values

[TheNguyener601]

Originally Posted by TomLou

Go to an AD who knows current values

This is horrible advice considering you can’t get a replacement for the MSRP price. I recommend going to a jewelry appraisal service that will quote you for the grey market value. Otherwise, you’re going to get a check for the MSRP and have to hunt down a replacement.


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[KathleenL]

Originally Posted by JodyHighroller

They allow 150% on all. The 150% depends on your total policy insured though, so if you only have one watch insured than this won’t apply.

You need an appraisal for anything over $100k for Hodinkee. If your insured piece is right below the threshold, but at time of loss was worth more than $100k you still won’t need an appraisal despite exceeding that $100k level.

OK, so if someone insures only one watch through Hodinkee, the watch owner can decide the dollar value of the policy (without an appraisal, as long as it is under the $100K level)? And then in the event of a loss, Hodinkee will pay out just the insured value, not 150%. Am I correct?

[WilsdorfNDavis]

Originally Posted by KathleenL

OK, so if someone insures only one watch through Hodinkee, the watch owner can decide the dollar value of the policy (without an appraisal, as long as it is under the $100K level)? And then in the event of a loss, Hodinkee will pay out just the insured value, not 150%. Am I correct?

Correct.

[KathleenL]

Originally Posted by KathleenL

OK, so if someone insures only one watch through Hodinkee, the watch owner can decide the dollar value of the policy (without an appraisal, as long as it is under the $100K level)? And then in the event of a loss, Hodinkee will pay out just the insured value, not 150%. Am I correct?

Originally Posted by WilsdorfNDavis

Correct.

Thanks!

[john333]

Originally Posted by vinny84

Just signed up for Hodinkee insurance this past Friday for the new year. Very easy and simple process, no serial # or appraisals required. Just type in your info, your agreed value price and pay for the year.

Same, I signed up with Hodinkee over the past week. Very easy and no appraisals required. You can also update your policy at any time if you collection changes.

[JodyHighroller]

Originally Posted by KathleenL

OK, so if someone insures only one watch through Hodinkee, the watch owner can decide the dollar value of the policy (without an appraisal, as long as it is under the $100K level)? And then in the event of a loss, Hodinkee will pay out just the insured value, not 150%. Am I correct?

Correct.

For example, let’s say you have two watches both valued at $10k a piece, so a total policy limit of $20k. If one watch gets stolen then you will be covered up $15k. That extra 50% will come from the total policy limit. You can simply get an invoice from your desired secondary dealer or AD showing the cost for replacement. Hodinkee is pretty flexible in that regard, I asked!

That’s why insuring for market allows your policy to accommodate for any references that have volatile market pricing. Example: the OP41 turquoise right after the 5711 Tiffany auction.

Now, if entire collection is stolen then you will only be covered up to the amount each item is scheduled for. Same case for a single watch policy too.

[Michael T]

Your insurance company can tell you what level of appraisal you will need. As the watches get more expensive, the insurer will ask for a credentialed appraiser with the proper appraiser designations. Speak with their underwriting group to understand what they need (for example, GG,ISA or AM).