Rolex appraisal and insurance

[amphr1]

So I just spoke to AAA, my home owner insurance provider, and they said that as long as I can get my watch appraised and declared in my policy, they would cover their losses no matter where it is stored. I asked that in the context of putting some of my watches in a bank deposit box. With that in mind, why would anyone pay someone like Hodinkee to insure your watch specifically?

[ThatOtherGuy7]

Not everyone wants it attached to their homeowners policy. Anything that you claim from there will raise your premium. So it’s nice to have a separate policy with Hodinkee, for example, so that things are separate. Watches can be more easily stolen, lost, and damaged vs a home.

[amphr1]

Originally Posted by ThatOtherGuy7

Not everyone wants it attached to their homeowners policy. Anything that you claim from there will raise your premium. So it’s nice to have a separate policy with Hodinkee, for example, so that things are separate. Watches can be more easily stolen, lost, and damaged vs a home.

Actually I was told it would NOT raise my premium since the amount is less than the amount declared for the house. Currently I have coverage for a bit over $500k, which is the estimated cost to rebuild a burn down house. The value of my watch collection is significantly less than that amount. But I guess I get your point, if the watch is stored at home and it burn down along with the house, the payment is still only $500k and not more. But since I'm going to store some of my watches in a bank deposit box, that risk is mitigated, and the home policy covers the item no matter where I store it.

[H25B]

I just had State Farm doing a separate personal articles policy. Easy.

[Mystro]

Originally Posted by H25B

I just had State Farm doing a separate personal articles policy. Easy.

That’s who I use and have all my watches appraised at market value. Zero stress wearing any of them, especially on long vacations.

[Me4u2night]

Most places will insure the msrp, not the market value. I believe HODINKEE insures the market value.

[ThatOtherGuy7]

Originally Posted by Me4u2night

Most places will insure the msrp, not the market value. I believe HODINKEE insures the market value.

State Farm insures at market value as well. I had appraisal done through Elite Time Pieces, sent it to them, and have everything insured at market value. It is about 1/3-1/2 the price of Hodinkee annually.

[RDT-G23]

Originally Posted by H25B

I just had State Farm doing a separate personal articles policy. Easy.

I too have State Farm, but it isn't remotely easy. (I've had them for 40+ years actually) This thread could go on for days, truth be told. Values are the issue. I won't go further. I have a lot of jewelry and watches. Not easy.

[RDT-G23]

Originally Posted by H25B

I just had State Farm doing a separate personal articles policy. Easy.

I too have State Farm, but it isn't remotely easy. (I've had them for 40+ years actually) This thread could go on for days, truth be told. Values are the issue. I won't go further. I have a lot of jewelry and watches. (Not as many ringz as my boy, Nick - to the left). (I had to do that). Still, not easy.

[DubOhio]

I have USAA and in the first year of an item they will only cover 25% over MSRP. I only have one watch with a market value over 25% so not to worried since I’ve paid msrp on all my watches this far.

[Duke10]

I own an insurance agency. We are independent and represent a number of different companies. I can tell you without a doubt if you have a mischievous disappearance claim which is covered if item is scheduled, your premium will go up at renewal. Now, fire or storm along with theft would not cause an increase. I am not familiar with Hodinkee but it sounds like it would be worth looking in to. Also, scheduled items are meant to be replacement cost. So if I have a sub, I’m covered for whatever the cost is to replace with like and kind quality. With that being said, I always recommend updated appraisals for items that have appreciated. Especially the rate of a Rolex!

[28mm]

Originally Posted by Duke10

I own an insurance agency. We are independent and represent a number of different companies. I can tell you without a doubt if you have a mischievous disappearance claim which is covered if item is scheduled, your premium will go up at renewal. Now, fire or storm along with theft would not cause an increase. I am not familiar with Hodinkee but it sounds like it would be worth looking in to. Also, scheduled items are meant to be replacement cost. So if I have a sub, I’m covered for whatever the cost is to replace with like and kind quality. With that being said, I always recommend updated appraisals for items that have appreciated. Especially the rate of a Rolex!

I actually googled "mischievous insurance claim" haha

I thought I had it wrong all these years!

[amphr1]

Originally Posted by Duke10

I own an insurance agency. We are independent and represent a number of different companies. I can tell you without a doubt if you have a mischievous disappearance claim which is covered if item is scheduled, your premium will go up at renewal. Now, fire or storm along with theft would not cause an increase. I am not familiar with Hodinkee but it sounds like it would be worth looking in to. Also, scheduled items are meant to be replacement cost. So if I have a sub, I’m covered for whatever the cost is to replace with like and kind quality. With that being said, I always recommend updated appraisals for items that have appreciated. Especially the rate of a Rolex!

Hey thanks for the insight. So lets say we think the market peaked, I should appraise my watches now, so that when it drops down, i can still use that appraisal to claim the peak amount? or would insurance company then go and say given what you appraised that year, the current market value would now be X?

[Duke10]

They would go off current market value. Much easier on watches than say custom jewelry though. If you cannot find a replacement then they settle on an agreed value. Usually the appraisal amount.

[Jack T]

Originally Posted by Duke10

I own an insurance agency. We are independent and represent a number of different companies. I can tell you without a doubt if you have a mischievous disappearance claim which is covered if item is scheduled, your premium will go up at renewal. Now, fire or storm along with theft would not cause an increase. I am not familiar with Hodinkee but it sounds like it would be worth looking in to. Also, scheduled items are meant to be replacement cost. So if I have a sub, I’m covered for whatever the cost is to replace with like and kind quality. With that being said, I always recommend updated appraisals for items that have appreciated. Especially the rate of a Rolex!

Yes, an important distinction- msrp vs replacement, especially if a watch has been discontinued.

With the example of a Sub, or a Daytona C, your insurer will just look up in the Rolex catalogue the current price and cut you a check, no matter how much you paid for it.

The GMT II, black ceramic, msrp of $8,500 or so back in 2017, there is no Rolex price for it anymore; you can not get one now for less than $15,000. An AP Nautilus? Fuggetaboutit!!

[Bustelo]

Originally Posted by Duke10

They would go off current market value. Much easier on watches than say custom jewelry though. If you cannot find a replacement then they settle on an agreed value. Usually the appraisal amount.

Market value being from a grey dealer that actually has watches, or the MSRP from Rolex that does not have watches?

[Duke10]

If you can’t get one from Rolex directly, it would default to the grey market pricing.

[jlevitt9]

Originally Posted by H25B

I just had State Farm doing a separate personal articles policy. Easy.

This. Like $65 a year for my sub.

[WBaileyii]

Originally Posted by DubOhio

I have USAA and in the first year of an item they will only cover 25% over MSRP. I only have one watch with a market value over 25% so not to worried since I’ve paid msrp on all my watches this far.

I also have USAA, they will only do 125% of value UNLESS you have an appraisal with market value. If you get the appraisal, then they will insure at the higher rate.

[amphr1]

Okay so as I'm going through the process, I realize the first AAA agent gave me bad information. It's going to increase my home insurance annually by like $500 or more. And without scheduling it, they only cover up to like $2k for watches/jewelry which is ridiculous!

Anyway so now I'm looking at Hondinkee insurance...

[amphr1]

Ah man, insurance is not cheap

[amphr1]

What are my other options?

[IEEE1588]

I just insured a 2022 TT DD and a 126660 at market value with Jewelers mutual. I didn’t need to attach an appraisal, but I did attach the receipts from the AD.


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[Webster2281]

i also have mine with state farm

[kirth]

I use Jewelers Mutual. I had to provide a receipt/appraisal, but was essentially allowed to set my own value and pay the corresponding premium.

[beshannon]

Originally Posted by amphora001

With that in mind, why would anyone pay someone like Hodinkee to insure your watch specifically?

Because Hodinkee (Chubb) is far less expensive for they value I have insured.

[AFinchMustang]

Originally Posted by amphora001

What are my other options?

I've been using Jeweler's Mutual since my first Rolex and the price lines up almost exactly the same as your Hodinkee quote (JM: 1.246% of value vs Hodinkee: 1.254% of value). My Jewelers Mutual rate is based on $0 deductible btw

[wclowe]

Representatives from AAA, State Farm, USAA and others often say they’ll cover the loss at market value with an appraisal but I just don’t feel confident this will be true.

That’s why I made the switch from USAA to Hodinkee/Chubb. My collection is too important to leave to chance and I don’t mind paying a little more for piece of mind…

Cheers!


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[77T]

The defining moment is upon a loss.

Do not start with price.

Focus on the contract language in the policy. Don’t sign without fully reading terms and conditions. Verbal representations are excluded -

Upfront statements (like the misinformation the 1st AAA agent shared) aren’t worth the CO₂ exhaled by the speaker.


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[amphr1]

I just bite the bullet and paid $600+ for $50k worth of coverage. I didn't insure it to the full value to keep the cost a bit low.
- SD at 13
- GMT at 17k
- Tudor sub 5k
- DJ36 to 10k.
- Explorer 5k

The explorer value declared is very low, but I did that base on risk in terms of when I usually wear it in public, and how sad I'd be if it was stolen...