The luxury watch market is currently facing a troubling rise in thefts, compelling owners to enhance their insurance coverage to protect their valuable possessions. As high-end timepieces become increasingly desirable, criminal elements have adapted, targeting affluent individuals and watch retailers in urban centres around the globe.
According to a study by luxury watch e-commerce portal Watchfinder & Co, in 2022 London was a major hotspot for luxury watch thefts, with more than 6,000 watches stolen, and a staggering £4 million in losses from just 300 incidents between April and September, as reported by Evening Standard in the UK. This trend is not limited to London; cities like Paris, Geneva and Zurich are also experiencing a surge in watch-related crimes. For instance, Paris saw a 31 per cent increase in luxury watch thefts during the first half of 2022, according to UK insurance company Stanhope. The Watch Register, a database tracking stolen watches, recorded a 60 per cent increase in newly documented thefts in 2022, totalling about 6,815 watches with a cumulative value exceeding £1 billion, as per a report by GQ magazine.
The increase in thefts can be attributed to several factors, including the pervasive influence of social media, which showcases luxury watches and makes them easily recognisable to potential thieves. Norman Tontsch, an expert in wealth creation and watch insurance at Allianz in Cologne, says, “Five years ago, watch thefts were significantly lower. Now, social media has made it easier for anyone to identify high-value watches.”
Don’t miss: Time travel on water: Vintage yachts clash in the Richard Mille Cup 2024
Norman Tontsch, an expert in wealth creation and watch insurance at Allianz in Cologne (Photo: courtesy of Norman Tontsch)
High-profile incidents involving celebrities, such as Formula One drivers Carlos Sainz and Charles Leclerc, who had their Richard Mille watches stolen in public, underscore the risks faced by even the most vigilant watch owners. The Instagram personality Danar Widanarto, known as Mr Watches or Chronondo, recently fell victim to a brazen theft when his coat, which had dozens of watches sewn into it, was stolen from his home in Cologne last December. Known for showcasing luxury watches and sharing insights about the industry, Mr Watches has a substantial following, and his experience serves as a stark reminder of the risks involved in displaying high-value items publicly.
“It happened on December 23, 2023, when I was not home. They broke into my apartment between 11am and 1pm, took [watches including] one rare Cartier and my signature green watch jacket with more than 100 fashion watches attached to it,” says Widanarto. “After six months, I feel insecure in my own apartment, even after I found out that it was not a targeted robbery. After it happened, I needed to take a break from social media because I was not ready to entertain the watch community.”
As the threat of theft escalates, so does the demand for specialised watch insurance. Traditional homeowner’s insurance policies often fall short, typically covering watches only within the home. To ensure comprehensive protection, owners are increasingly opting for dedicated luxury watch policies that offer worldwide coverage against theft and damage. Tontsch explains, “We offer three types of luxury watch insurance: classic item insurance, household contents insurance with all-risk coverage, and art private insurance for high-value households.” Each type is tailored to meet the specific needs of watch collectors, providing peace of mind in an increasingly risky environment.
The classic item insurance policy means that each watch is treated as an individual item and insured accordingly. “We specify the insured value, the purchase date and so on.” Each watch is assigned its own premium. These watches are then covered under an all-risks policy. This means they are insured against everything except what is explicitly excluded in the policy terms. “It includes falling, breakage, theft, trick theft, loss or other types of damage that we might not even imagine today. An example of something that is not covered would be if a pet damages or destroys the watch.”
Danar Widanarto is a watch collector whose coat of watches was stolen in December 2023 from his home (Photo: courtesy of Danar Widanarto)
The second type of insurance is a household contents policy with all-risk coverage. “This means that the entire household contents are insured against everything that is not excluded, including watches. This allows most watches, up to a certain value, to be left around the house freely and still be covered against all risks. Anything exceeding this value must be stored in a bank safe deposit box or a safe with VdS certification,” generally considered the gold standard. Depending on the certification, there are different compensation limits for watches and other luxury items.
The art private insurance is luxury household cover “reserved for households with a total value exceeding 500,000 euros”. This type of insurance is typically for owners of watches, art, carpets and jewellery. “These are usually homes where burglar alarms are already installed and that have long had a safe, as the contents of these homes far exceed the standard value. Our job is to insure and cover everyone, whether they have a one-watch collection or are collectors of multiple watches or other luxury items,” he says.
Hodinkee, a well-known name in the watch community, launched its watch insurance programme in 2021, responding to the growing demand for specialised coverage in light of rising thefts and damages. This service allows watch owners to insure their timepieces against theft, loss and damage through a straightforward online application process, reflecting the current market value of their watches. As the trend of insuring luxury watches gains momentum, several other companies have also entered the market, including Chrono24, which offers a similar insurance service for high-value watches. Additionally, established insurance providers like Allianz and specialist firms such as Watch Certificate are providing tailored insurance solutions for watch collectors.
The insurance sector is keenly aware of these growing concerns. Tontsch remarks, “The rise in luxury watch theft is a significant worry for underwriters. The number of burglaries involving watches has increased by one third over the past decade, indicating a persistent threat.”
He adds that many insurers are reconsidering their involvement in the watch market due to the heightened risks. Widanarto agrees and cautions watch lovers to be extra careful during the festive season. “The robberies happen mostly during the winter time, between November and December.
“Many insurers who still cover the theft of luxury items in their policies today will, in my opinion, withdraw from this area. Therisk they calculated back then no longer matches the reality we face today. The methods of stealing watches, the frequency withwhich watches are stolen and, of course, the types of watches being targeted—specifically high-end luxury watches—have changed significantly and were not properly accounted for in the original calculations by many companies.
As a result, we will likely see new clauses added to insurance policies or the exclusion of watch theft coverage altogether in future policy updates from many companies. At the same time, many online insurance platforms are already drastically adjusting their premiums due to the increased risks.”
One of Tontsch’s watches (Photo: courtesy of Norman Tontsch)
Tontsch shares two personal experiences that highlight the complexities of watch insurance: “The first involves a client whose insurance company assured him that all the watches in his household contents were covered, as long as they weren’t made of precious metals.” The client even received this in writing from the insurance company. “I then pointed out to him that his Vacheron Constantin Overseas uses a platinum rotor.
Since this watch isn’t entirely made of precious metal but includes a platinum rotor, is it covered under his household insurance or not? The client posed this question to his insurance company and, four months later, he still has not received a response,” he says. This example showed “how complex and intricate this niche subject is”, requiring deep expertise to navigate.
The second story is about a client Tontsch will soon be insuring, who had never been interested in watch insurance before because he didn’t perceive it to be a risky asset to own. “That changed when he was walking with his family through Brussels and someone attempted to snatch his Tudor watch off his wrist in broad daylight. This attack, marked by a certain level of force and brutality, was a wake-up call for him.”
While there is a growing interest in watch insurance, the issue of market fluctuations in watch values presents significant challenges for insurers. “Like stocks, these fluctuations can occur rapidly and dramatically. This is why it’s crucial for watch owners to consult an advisor and an insurance company that are well-versed in this specific area,” says the insurance expert. If an advisor is unfamiliar with the watch market or if the insurer hasn’t focused on “niche but high-value assets”, insuring watches becomes much more challenging.
See also: How Vacheron Constantin has redefined elegance with its Patrimony Collection
To mitigate risks, the expert recommends that watch owners adopt preventative measures, such as being discreet about their timepieces in public and securing their homes with adequate security systems (Photo: courtesy of Norman Tontsch)
“For this reason, we regularly involve insurance experts from the luxury segment, who carefully examine the watches, review appraisals and have in-depth discussions with our clients about insurance, replacement value and the price of the watch. This ensures that, in the event of a claim, the compensation is not arbitrary, but rather the customer receives exactly what was agreed upon during the insurance process.
“This thorough, personalised assessment and consultation is something that many companies and advisors in the luxury watch insurance segment are unable to provide.”
To mitigate risks, the expert recommends that watch owners adopt preventative measures, such as being discreet about their timepieces in public and securing their homes with adequate security systems. Tontsch adds, “It’s crucial to be aware of your surroundings when wearing expensive watches and to avoid posting them on social media, as this can attract potential thieves.” Learning from his experience, Widanarto says that he stores “my watches at various places [and keeps] a maximum of two watches at home”.
The high cost of insuring luxury watches by brands like Patek Philippe and Rolex presents a significant barrier for many potential investors. With annual premiums typically ranging from 1 to 2 per cent of the watch’s value— some find it challenging to justify this expense. This gap in the market raises an intriguing question: could this be an opportunity for the brands themselves or an innovative player to step in and revolutionise the luxury watch insurance landscape?
The demand for accessible and affordable insurance solutions is evident—and the luxury watch sector is ripe for disruption.
NOW READ
Edouard Meylan on the artistry behind H Moser & Cie’s Streamliner Concept Minute Repeater
First look: Patek Philippe unveils the all-new Cubitus collection
Chanel makes waves in rowing by partnering with The Boat Race—what’s behind this sponsorship?