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Contents Insurance for Watches
Contents Insurance for Watches
Written by
Liv Steigrad
Edited by
David Rayfield
Reviewed by
Natasha EtschmannCompare home and contents insurance the easy way
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Long story short
Luxury watches can be insured through contents, personal effects, or specialty cover
You could insure your watch for events like theft, loss, or damage, whether it’s inside or outside the home.
Specific personal effects cover could insure your watch anywhere in Australia
This add-on could protect specific items like high-value watches for their full amount, at home or on the go.
Some insurers may exclude overseas cover or theft from unattended cars
If you travel, ensure you read the fine print as policies vary across providers.
You take that watch out for a spin on a night out and then: the unimaginable happens. Maybe the strap got loose somehow and it fell off without you noticing. Or someone broke into your house while you were out and snatched it.
Either way, your prized possession is gone, and your wrist is lonely. And it’s not the kind of watch where you can just pop back into the shop and buy another one. So, what do you do?
Time to make a claim on your insurance.
How can I insure my watch?
You might think that your watch getting lost or stolen is unlikely. But when it comes to luxury watches, that’s still a risk that some people would rather not take. If you’re keen to protect your watch, here are some ways to cover it.
Contents insurance
Contents insurance typically covers your items in your home for damage, theft or loss. Think electronics, furniture, and whitegoods. It can also extend to more valuable items, like laptops, jewellery, and luxury watches.
When you take out a contents insurance policy, you can choose a level of cover that is enough to replace or repair everything you want covered. Some policies will have limits for certain items though, which might not always cut it for something as special as your watch. Contents insurance also normally only covers items inside your house, so for something like a watch that you take with you out of the house, you might like to look at getting a personal effects or portable contents policy.
Specified personal effects
Specified personal effects cover allows you to list a specific item on your insurance policy and insure it for its full amount. It will be covered both at home and away from your home.
Unspecified personal effects
Unspecified personal effects cover is great for items you take with you when you leave the house. These policies usually have an overall limit with a lower limit per item, making them more suitable for less valuable items.
Specialty insurance
If you prefer to keep your watch cover separate from your contents insurance, there are also a number of specialty insurance companies that offer insurance specifically for items like luxury watches and engagement rings.
Helpful tip
Purchased a new watch and want it covered? Or maybe you decided to sell the one that’s on your policy? Just give your insurance provider a quick call or email to update your coverage. It’s a straightforward process—simply let them know the details, and they’ll adjust your coverage accordingly. Keeping your policy up-to-date like this will ensure you’re always protected.
Natasha Etschmann
Investor & Personal Finance Educator
What will personal effects insurance cover?
In a nutshell, personal effects insurance covers items you take with you away from your home. Many personal effects insurance policies cover your items for loss, damage, or theft anywhere in Australia, and they may or may not also cover your watch or jewellery when travelling overseas.
Of course, each individual policy will have different specifications, so make sure you read your product disclosure statement (PDS) carefully.
What doesn’t personal effects insurance cover?
As previously mentioned, different policies will have different specifications. Here are some of the main inclusions or exclusions to check for:
- Overseas travel. Some policies will cover items like watches and jewellery while you’re overseas and for a limited amount of time, while others won’t cover your items overseas at all
- Accidents or water damage
- Devices stolen from an unlocked car or left unattended in public
- General wear and tear
What else do I need to consider when insuring my watch?
Decided to insure your watch? We love to hear it. Before you start hunting around for policies, here are a few things to consider.
Specified or unspecified cover
The value of your watch should help you answer this question. Check the details of the policies you’re considering, but if your watch is worth over $1000, you might prefer a specified policy.
Item limits
Whatever type of policy you decide to go with, check the item limits. Both contents insurance and unspecified personal effects policies will usually have a limit per-item as well as an overall limit.
Warranty
Does your watch come with a warranty? What does it cover, and for how long? That information might impact the type or level of insurance you want to take out on your watch. It’s important to note that most watch warranties only cover manufacturing defects.
What’s myth and what’s fact in watch insurance?
There are so many myths out there about watch insurance, it sometimes feels like somebody’s making things up on purpose! Let’s debunk some of the most common ones.
“Contents insurance covers me for everything!”
False. It covers your items for specific events, up to a specified amount, and only when the items are inside your home.
“It’s just not worth it!”
There’s no simple true or false answer to this. Whether or not watch insurance will be worth it to you personally can depend on:
- How much your premiums are
- The value of the watch
- Any sentimental value to that watch
- Your financial circumstances
- Your lifestyle
At the end of the day, it’s the expense of insuring the watch weighed up against how it would impact you if the watch was lost or damaged. Only you can answer that question for yourself.
“My claim will just get rejected anyways!”
This one’s false. Insurance companies get very specific with their policies, but if your watch was lost or damaged under an insured event and you’re able to provide the necessary information or documentation, there’s no reason your claim would be rejected without reason.
Where can I find and compare home and contents insurance?
You can start comparing home and contents insurance policies right here! And yes, that includes policies with personal effects options too. Compare policies from a wide range of providers online.
Get started on comparing home and contents today!
Save time and effort by comparing a range of home and contents insurance policies with iSelect
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