Is your insurance ticking along? Tick tock, tick tock……
The classic wristwatch has always been a favoured item for collection. At the luxury end of the market, valuations are going through the roof. Do you own a Rolex, Patek Phillipe, Audemars? The luxury watch market has changed dramatically over the last 10 years, with luxury watches becoming a very popular collectable item and investment piece. With record sales, items discontinued, and increased demand that has led to a thriving second-hand market, prices for brands such as Richard Mille, Cartier and IWC Schaffhausen are skyrocketing and buyers are experiencing huge wait times. The classic business forces of supply and demand are very much at play here, and it is seriously driving up prices. From an insurance perspective, (as that’s what we do!) the increase in values can create issues when it comes to what these pieces are insured for. How much would is cost to replace your most loved time piece?
When was the last time you had a valuation? Has your previous valuation expired?
It has become apparent that buying a wristwatch new, has a very different value on the second hand market should you need to replace it. For example, a Stainless-Steel Rolex Submariner purchased in 2000 would have cost around £3,000 for a brand new one, to purchase the equivalent model today you would be looking at £6,450, the difference would be that you would not be buying the item today, you would be placed on an extremely long wait list. The realistic cost for this item today on the second hand market would be anything up to £13,500.00.
Similarly the Patek Phillip nautilus, a very similar looking watch to the Rolex submariner, if you had brought a brand new 5711 thirteenth century watch in 2006, this would have cost you £15,000.00. The modern equivalent retail price today would be £25,690.00, however this wouldn’t be a quick purchase, you would be on a waiting list for up to 8 years to get one, if you wanted to purchase one today the realistic price you would be looking at would be £80,000.00.
These are two of many of the most popular watches that we insure daily, and give a good example of the spiralling (upward) watch market since the start of the 21st century, it’s not only the brands that I have mentioned, Richard Mille, Laurent Ferrier and Piaget to name but a few have also seen exponential growth in the market.
So what about insurance?
This brings me on to insurance and the question you should be asking yourself; are my watches insured correctly? Actually, as good brokers, it’s a question we would be asking you at each renewal! Either way, based upon the rate at which values are increasing, it is more than likely that your watch collection is not insured correctly. When insuring these items, you would naturally insure the watch for the price you paid, however, bearing the above in mind, this would not completely cover the cost of replacing the item. We strongly recommend that you have your watch valued at the moment of purchase and every three years thereafter, this would provide a great basis from which to start proceedings in the event of a claim.
An insurer that we have a great relationship with is Horizon. They have teamed up with Doerr Valuations to offer a valuation for your watch at £50.00 plus VAT. For this fee you would be given a report which will provide you with an up to date TRUE replacement value for the purpose of insurance replacement. Should you have a collection to be valued at home a visit can be arranged for you at a special rate.