The best watch insurance providers in 2024
Luxury watches are more popular than ever – not only as a fashion status, but as investments. Some rare models have seen prices triple over the past few years, handing their owners returns far in excess of stock markets.
If you’ve spent a lot of money on a decent watch or have been given one as a gift, the last thing you’ll want is to lose it or have it stolen.
Insurance is essential. You can either take out a specialist watch insurance policy or you might be able to get it covered on your existing home contents policy.
The right option for you will largely come down to your watch and its value. Here Telegraph Money explains how to get the best watch insurance for you.
Why watch insurance is important
Matthew Ashton of specialist insurance broker Stanhope Insurance says that if you’ve got a pricey watch, the biggest risk is theft.
“It is widely reported that watch thefts in London have risen sharply post-Covid. Some of the most romantic cities are also hot spots for luxury watch thefts. Soberingly, when including accidental losses, lost and stolen watches have more than tripled over the past year.”
Nathan Blackler, of comparison site Go Compare, adds: “If you own a high-value piece of jewellery like a watch, it’s important to consider whether you have sufficient insurance in place should anything happen.
“While you might think your jewellery and watches are covered under your contents insurance policy, depending on their value, this might not be the case.”
Home insurance versus watch insurance
It may be possible to get adequate cover for your watch on your home contents insurance policy.
You just need to be mindful that if the watch is worth more than the single item limit on your policy (typically around the £1,500 mark, but possibly as low as £1,000), you will need to let your insurer know and have it listed separately on your policy schedule.
Even with a separate listing, the maximum amount your home insurer will pay out on a watch may also be limited, often to around £10,000.
You will also need “personal possessions” cover to ensure it is protected while you are wearing it away from home.
It’s worth checking what will happen if you claim too – you may only get vouchers to replace the watch at a high street store.
With a specialist watch insurance policy, you will be able to cover single watches or collections and there won’t be an upper limit on the value. You will also get worldwide cover away from home.
Ashton says: “Standalone watch insurance replaces your watch on a like-for-like basis if it is stolen, lost, or accidentally damaged. If the watch cannot be replaced or repaired, you’ll receive a cash settlement instead of vouchers (which limits your replacement options).”
However, even with a standalone policy it is still important to be aware of the limits.
Blackler adds: “It’s worth bearing in mind that insurers won’t usually provide cover for cosmetic damage like scratches, dents or general wear and tear – but it can protect your pocket should the worst happen.”
Whether you use home insurance or a specialist provider, cover will vary between providers, so check the details carefully.
Top standalone watch insurance providers
The table below shows Stanhope Insurance’s panel of insurance providers for watches ranging from £5,000 to £100,000,000 collections.
Factors to consider when choosing watch insurance
The main point to consider when deciding whether to use your home insurance or standalone watch insurance will be the value of your watch.
If it exceeds the maximum value covered by your home insurance policy, standalone cover is likely to make sense. And, if it’s a highly treasured possession, you will want to be sure that you can get a like-for-like replacement in the event of claim.
You should also take your living arrangements into account too, says Ashton: “If you live in a house share, you’ll want to insure the item on a standalone product since a home insurance product may not offer cover in a house share.”
If you have a luxury watch and you aren’t sure how to proceed, it is worth speaking to a specialist broker who can look at your overall situation. They will be able to advise whether your watch can be covered within a combined buildings and contents policy or whether you need standalone watch insurance.
How much does watch insurance cost?
A combination of increased demand for luxury watches, rising thefts and spiraling repair and replacement costs, mean the cost of watch insurance is increasing.
Stanhope Insurance has a rough formula for calculating the cost of watch insurance that takes into account the watch’s value, insurance premium tax and fees:
Watch value x 2pc x 1.12 (insurance premium tax at 12pc) + £25 broker fee = estimated cost.
This would mean that a £10,000 watch would cost an estimated £249 a year to insure.
The exact price you would pay, however, would depend on a number of factors including where you live (you’ll pay more if there’s a higher crime rate), your age and your previous claims history.
If you are including a watch on your home insurance, it will boost the cost of your policy. How much the cost goes up by will depend on the value of your watch and whether you choose personal possession and accidental damage cover.
Frequently asked questions
Can I still get cover for a Rolex?
Rising demand for luxury watches from the likes of Rolex, Patek Philippe, Richard Mille and Audemars Piguet means that thefts have soared. In many cases these brands cost more to buy second hand than new.
This is pushing up the cost of insurance for luxury watches, however, it is still possible to get insurance for Rolex and other high-end brands through specialist brokers.
Do luxury brands offer their own watch cover?
No – none of the luxury brands offer their own watch insurance.
Audemars Piguet does offer its customers a two-year complimentary service covering theft, robbery and functional damage to your watch, however this protection is not technically insurance. It won’t, for example, cover loss or accidental damage.
Do I need to buy watch insurance?
If you have an expensive watch that’s likely to be a target for thieves it is sensible to have it insured.
If your watch is worth less than the single item limit on your home insurance (typically around £1,500) it should be covered already.
More expensive watches can also be covered if they are listed separately but there will still likely be a maximum limit. So, if you have a very expensive luxury watch, you may get more comprehensive cover from a specialist watch insurance policy.
Check the cover level on any policy you take out very carefully and do not make any assumptions about what will be covered.
How can I compare watch insurance policies?
Although it’s easy to compare home insurance on comparison websites, it’s more laborious looking for standalone insurance as you will have to research multiple providers online.
However, you can contact a specialist broker to scour the market for you.