After reading on another board about yet another person having their watch stolen, I am thinking of insuring some or all of my collection. Any advice from people who have a lot of watches? I have seen recommendations for one company (initials JM) but after googling them and seeing so many negative posts about their business practices that doesn't seem to be the way to go. And a rider on a homeowners' policy is expensive.

I keep my watches at the bank and only take out one at a time but the exposure shifts to the watch that I am then wearing.

Thoughts? Thanks.

 

I work within the insurance industry (although not on the "personal lines" side, which this would be). I would say that the most efficient, cheapest and (likely) best way to insure watches is on a home owners or renters insurance policy.

You will need to speak to a broker in order to find the policy that fits your specific needs - you don't pay for their time - they're given a commission by the insurance company.

As a general statement, you ought to find an insurer that offers to insure your watches and jewelry on a "rider" - essentially a separate add-on policy to the main policy. By way of example, mine allows me to insure up to $30,000 in watches and jewelry without appraisal or even telling the insurance company what I have. The rider carries no deductible (I.e. I pay nothing if there's a claim) and all pieces are insured to replacement value.

A number of years ago I had a Tag Heuer Monaco stolen - I reported it and was told to go to any reputable jewelry store and get a price on replacing the piece - I'd bought the Monaco used on eBay for $1,400, but it didn't matter. As I was insured to replacement value, I received $6,000. My policy is through a global insurer called Chubb (I'm in no way affiliated with them - in fact I compete with them) - they are seen as one of the premier insurance companies for personal lines. They're more expensive but, as noted above, provide an exceptional experience in the event of a claim.

I believe this costs me $200 a year as an add-on to my main policy.

Finally, keep in mind a few more things:
1) Insurance brokers aren't all equal. Shop around and see what they offer you. They're paid based on a percentage of the premium so it's no skin off your back having them send you a quote;
2) Price isn't the only thing to consider - you can have wildly different terms in a given policy. So cheap may be just that - crappy, cheap insurance (check things like deductibles, limits, territory the insurance covers, whether you're covered for "mysterious disappearance" (insurance term for "i left it somewhere and now can't find it"); and,
3) you're simply a number to an insurer - the more premium you can promise them, the better the deal you typically get. So it's typically best to insure everything with one insurer - home, auto, any business you might have, etc...

Hope this helps.

 

^^^^^Legit advice...well done.........

 

Up to this point, my wife and I have kept a rider on our home owners policy for our watches and jewelry. Recently, I read some commentary stating that it is possible that if a claim is made, you run the risk of your home owners policy either skyrocketing or being flat out cancelled upon renewal. I reached out to our broker with this question. The reply we got back was that this situation is a possibility. Ergo, now we're a little nervous and doing some shopping. I too am looking at JM but feeling some trepidation because of reviews.


@sjg22 et al: Can you/anyone comment at all on the above? I would prefer keeping things as they are but not at the risk of BS being pulled by our current insurer in the unfortunate event that a claim is filed in the future.

 

This was very true in my case. By packaging my home, auto, etc all together I was able to save a lot of money. It was well worth the headache of having to go through all of the new paperwork and document submissions.

Great advice...

 

@Bushido I will preface this by saying that I'm not a licensed broker. You should consult one when making any decisions.

That said, I can speak in generalities about how an insurance company might approach your file.

Candidly, your broker's job is to be a consultant - providing you insight into the world of insurance. The answer that "it's a possibility" is a bit of a cop out. Getting hit by a bus is a "possibility" but not a likelihood.

We are currently in what's termed a "soft insurance market". This means that insurance is available cheaply with broad terms.

When I had my loss - for which the insurer paid $6k and I paid a fraction of that in yearly premium - my price increase was nil. My parents had their house broken into, filing a loss in the neighbourhood of $70k. Their increase was nil.

Not all insurance companies work the same, but in generality, if you have a loss they ask two questions:
1) what is the buying power of your broker? There are mega brokers (Aon, Marsh, Willis) that having buying power from insurers because they are massive. There are small brokers that buy a lot of insurance from certain markets and so have some sway over those particular markets - regardless, the insurance underwriter at the insurer will be asking themselves, can I afford to piss off this broker?
2) was the loss your fault and likely repeatable? Do you live in a bad neighbourhood? Did you do something specifically stupid? If not, insurance is a bit random - it's legal gambling. In general, personal lines insurers look at things from a macro sense. A $20k loss doesn't mean sh*t to them - they start to get interested at a much higher number than that.

So, given that we're in a soft market, you are almost sure to get insurance. It's the insurance market equivalent to the sub-prime era when anyone could get a mortgage (take that how you will....). If you have a loss, you're probably fine, unless you have multiple and you did something to contribute (even then, you'll probably still get insurance at the same price you've paid before the loss). The reality is, tying this to your property insurance means that the insurance company is more used to losses like Hurricane Irma where your house is gone. Or your kitchen gets ruined by a water leak. Not a watch or two getting stolen - that's small potatoes.

Could your insurer drop you after a loss? Possibly. Is it likely? NOPE.

Some ways to mitigate getting dropped by an insurance company:
A) Buy better insurance. This means dealing with a "better" insurance company or paying for their higher end coverage. Just like an airline, if your a frequent flyer, guess who gets taken care of when there's a cancellation?
B) Understand your broker's buying power. If you own a company, have multiple houses or a ton of assets, it's worth dealing with a premier broker because they will have more buying power with respect to insurance companies. If you're not, it might still be worthwhile to hitch your wagon to a giant. Or, if you feel that you get excellent service from a smaller broker, they may truly value your business and/or have lots of buying power with respect to a particular insurer. Nonetheless, doesn't hurt to shop around.

In concision, my general suggestion would be to not worry about insuring via a rider for the reasons above.

 

@sjg22, Thank you very much for laying all of that information out. It is greatly appreciated and definitely makes me rest a little easier reading your perspective.

 

At one time I was also licensed in the insurance business and @sjg22 has really laid out great information.
I just want to add a couple of points.

1. Comparison shop. Some brokers sell only one line of insurance (think State Farm) others are independent and can shop many insurers for you. The more information you have the better the coverage you can find at a given cost.

2. Ask for discounts for multi policy, and things like home security systems, safes, etc. If you already have a home security system, make sure it meets the minimum standards for your carrier and claim any discounts that apply.

3. Loss from "mysterious disappearance". There used to be coverage for loss from theft, casualty (fire etc), and "mysterious disappearance".
Don't know if that terminology is still used but the idea is clear. If your covered item simply goes missing you will be covered.

4. If you live in places that are subject to natural disaster, make sure you rider will cover that loss. In California, we have earthquakes and earthquake coverage is NOT part of basic homeowners policy. It must be purchased separately. Same for flood insurance if you live in a flood plain. As @sjg22 has covered, your agent/broker can and should be able to advise you on these matters with certainty. If not, find a new agent/broker.

HTH

Jon

 

Some good info on this thread as I navigate the insurance sit.... thanks for everyone contributing

 

Great to see this old thread come back to the top. Good information and timely as I am looking into adjustments to my insurance.