So, you have just purchased yourself a Rolex and you are thinking about insuring it and whether you should. Or maybe you have been collecting them for a while but none of them are insured yet. Is insurance a good idea or something that you could live without?
The Cost of Insurance
While some companies can be relatively cheap and only cost around 1% of the value of your beloved watch, per year, other policies can charge up to 10% of the value.
It may be a good idea to insure with a company that you are not with for your homeowner’s insurance, as that way if you ever need to claim it will not affect your homeowner’s insurance. Many companies are quite quick when it comes to getting a replacement watch and you can have a replacement watch arranged within 4 weeks of filing your claim.
Depending on the type of policy you have taken out, you may even be able to choose a different model if you wish or need to because the same model is no longer available, as long as you pay the difference.
Type of Policy – Theft, Damages or Both?
You have decided on insuring your Rolex watch, but which policy to go for – theft, damage or both? Many watch collectors will cover themselves for just damage, whilst others prefer to cover for both or vice versa. It all comes down to how much you wish to pay for your yearly insurance and whether you feel which type of cover you need and is better for you.
When you take out your insurance cover you may need a receipt to prove that the item is yours to insure and is not stolen in the first place, so if you are planning on insuring in the future then you need to make sure that you have the required documents. Many watch collectors keep hold of their receipts anyway as often this is the proof of warranty for the first 6 months or a year, depending where you purchased from.
To put it simply, if it is valuable to you then you should seriously consider insuring it. The same goes for your house, health, cars and many other things in your life that you consider valuable (both in money and otherwise). When it all comes down to it, getting insurance for anything is based on whether you could handle the hassle and afford paying out for a replacement yourself if it is ever damaged or stolen. While the odds may be relatively lower for your watch to get stolen, it is more common than you may think for watches to get damaged, considering how much you wear them.
You never appreciate insurance until you need it and do not have it, so if your Rolex is valuable to you then you may just be better off safer than sorry as you never know when you may need it.