Given the recent thread on Silver Snoopy values, I was wondering if you generally insure your watch for it's replacement value (MSRP) or its resale value? I suppose it all come down to what an appraiser says it's worth, so do they take resale values into account? What happens if you have a watch that has never been privately sold? Is it only worth the MSRP of insured value?
I insured most of mine at MSRP (sent receipts to insurance agent), but one of mine is worth more now than it was when I bought it. It also has since been discontinued because it is 10 years old. So for that one, I had a jeweler create an appraisal based on market value. So they will use their expertise to look around and use different pricing metrics to determine what it's really worth to replace in the event that you lose it. So... For new watches, just use your receipt. For older watches OR if you think a watch is worth more now than when you bought it, have a jeweler appraise it - and tell them your reasoning for why you think it's worth more (so they can check you, then write it into their appraisal).
Exact same process described above applies. Insurance doesn't care if you're insured for a higher replacement value. That just means you're paying higher premiums too. Get an appraisal and show them what the watch is going for.
I am not an insurance expert, but I do have some experience in insuring goods in an industry that has some similarities. I agree with @RoarLionsRoar... To expand upon what s/he said a bit... yes, your insurance company will happily take your money for whatever limits you claim you need. Should you have a loss however, they aren't just going to take your word for it. "Replacement value" is the name of the game. If a watch it still in production, obviously that's easy, replacement value is whatever you can go into a store and buy it for again. If the piece isn't easily replaceable, then someone with expertise (appraiser/reputable dealer) needs to have seen your piece and assigned it an insurance value. Insurance value can be (but isn't always) somewhat higher than "fair market value" IF the piece is not easily replaceable. In other words, it's not a "wait around and find a perfect example at a great price on the Omega Forums" value, but rather the "I have to go out and find an example in the very near future that is of comparable quality" value, even if that means buying from a high-end retail dealer or auction house, etc. Even with appraisals of those kind of pieces, be prepared for the insurance company to check them or challenge them in event of a loss to verify their accuracy (though in that process they may also find they are worth more if some time has passed, which is another reason to update your appraisals occasionally and reassess your overall coverage limits). It is helpful to have a good insurance broker to help you make your case in this event. Also, if you just have a few watches and the values aren't crazy high you can probably just list them on your homeowners policy (again assuming they fit in your overall limits), but at a certain point you may need to look into a separate policy with a more specialist broker/company just for your watches. Again, this all based on my experience with insuring other "items of extraordinary value," but I think it applies. I am very new to collecting watches so just hoping to contribute something of value here since I can't offer much in the vintage watch evaluation threads (yet). Good luck!
You can get a watch insured for actual "replacement value". But, in the event of a claim the insurance company will only pay out a "depreciated" price if you take the cash and don't replace it. Once you replace it, they will pay out the remainder of the value. In 2011 I had my Grandfather's 1970's Rolex Oyster Perpetual stolen, and they paid out a percentage for depreciation, and not until I replaced it with a Submariner 2 years later did I get the rest of the balance due. Last year I insured my 1 week old Hulk for $12,650 after an appraisal for "replacement value" since supply is constrained. But now it would cost me $14-15K to replace it. In fact, today I found a 5+ year old Hulk on DavidSW for $14K. So, this means that I need a new appraisal if I want enough coverage. Similarly, I have my 2019 Rolex SS Pepsi GMT II insured for $18,500 after an appraisal for "replacement value". I've been on the waiting list since the Pepsi was released and could not get one from either local AD. I had a similar issue with my new 2019 Rolex Sea Dweller 43 that I got last month, where it's insured for $15,000 while MSRP is $11,500, based on an appraisal. Before trading my GMT II BLNR towards the Rolex Pepsi GMT, I only had it insured for the $9K that I paid in 2015. I would have been in trouble trying to find another at only $9K if it had been lost or stolen without a new appraisal and increasing my premiums. It was a detail that I simply forgot about.
For sure look at top coverage and maximum replacement value. I've just began looking into insurance coverage and was told by my agent that I will need an appraisal of my watches which are a mix of vintage and modern. I live in a small (relatively speaking) city and thousands of miles from the next larger metropolitan area (Seattle). Any insight on what kind of business to contact for appraisals in this situation. There is a jewelry/watch store here (Ben Bridge) but not sure that is the right place to seek an appraisal, especially since they no longer carry the Omega brand. Next option is 2200 miles away.
I just added a DSOTM to my Jewelers Mutual policy and I used http://www.elitetimepieces.com/ for the appraisal and It was painless!
I think I need to look into agreed value. I currently use State Farm, not sure if they have that. I find it interesting that they'll gladly let you pay for a policy at MSRP even if the replacement must go through their sources first. I'm sure they can get them at 30% plus off due to State Farms reach and size. So you pay the premium on a cost they'll never see.
Insuring them and paying the premium is the easy part, collecting on a 'total loss' claim is another story. Be prepared for a lot of pushback regardless of how much data or paperwork you have.