Common Myths About Watch and Gem Insurance

 When it comes to protecting high-value items like luxury watches, heirloom jewellery, or rare gems, insurance is often an overlooked but crucial step. Many people assume that their standard home insurance will cover these valuables, while others simply believe that the risk of damage or theft is low. These assumptions often lead to costly mistakes. This is where Watch Insurance, Jewellery and Watch Insurance, and Gem Insurance come into play. However, due to misinformation and outdated beliefs, several myths surround these specialized insurance products.

In this article, we’ll debunk the most common myths about watch and gem insurance and explain why specialized coverage is essential for anyone who owns valuable personal items.

Myth 1: My Home Insurance Is Enough

This is perhaps the most common misconception among jewellery and watch owners. While your home insurance policy may offer some coverage for personal belongings, it often has limits for high-value items such as luxury watches or fine jewellery.

For example, your home policy might only cover up to ₹25,000 or ₹50,000 for jewellery, even if the item is worth several lakhs. In contrast, Jewellery and Watch Insurance policies are designed specifically to cover the full appraised value of these items.

Reality:

Home insurance has sub-limits and may not cover accidental damage, mysterious disappearance, or loss outside your home — which Watch Insurance or Gem Insurance typically does.

Myth 2: I Don’t Need Insurance for a Watch

Many people consider watches as accessories rather than valuable assets. However, if you own a luxury brand or limited-edition timepiece, it could be worth lakhs or even crores of rupees. In such cases, Watch Insurance is not a luxury — it’s a necessity.

Reality:

Theft, loss, accidental damage, and even malfunction are real risks. Without proper Watch Insurance, replacing or repairing such a high-value item could burn a hole in your pocket.

Myth 3: Gem Insurance Is Only for Collectors

Another common myth is that Gem Insurance is only necessary for gem dealers or collectors. This isn’t true. If you own a gemstone — even if it’s part of a single piece of jewellery — you can insure it individually or as part of a broader Jewellery and Watch Insurance policy.

Reality:

Whether it’s a family heirloom ruby or a diamond-studded ring, gem insurance can cover you for theft, damage, or loss during travel or storage. You don’t need to be a collector — you just need to value what you own.

Myth 4: It’s Too Expensive

Many people hesitate to buy Watch Insurance or Gem Insurance because they believe the premiums are too high. In reality, the cost is relatively low compared to the item’s value — typically around 1-2% of the insured amount annually.

Reality:

Paying ₹1,000–₹2,000 per year to protect a ₹1,00,000 item is not only affordable but smart financial planning. Considering the emotional and financial value attached to these items, it’s a small price for peace of mind.

Myth 5: Insurance Only Covers Theft

This myth can be particularly misleading. While theft is a key reason to get insured, Jewellery and Watch Insurance often covers much more — including accidental damage, loss, fire, natural disasters, and even loss while traveling.

Reality:

Comprehensive insurance policies provide all-risk coverage, not just theft. This includes cracking of watch glass, damage during cleaning, or even losing a gem from your ring.

Myth 6: Filing a Claim is Complicated

Another myth that deters people from getting Gem Insurance or Watch Insurance is the belief that filing a claim is a long and complex process. While it does involve documentation, many insurers offer easy online claim processes now, especially those specializing in jewellery and watches.

Reality:

With digital documentation, valuation certificates, and clear communication, claiming insurance today is faster and simpler than ever before.

Myth 7: Insurance Is Only for New Purchases

Some believe that only recently purchased items are eligible for insurance, but that’s not true. Most providers will insure older items, provided you have a recent appraisal or valuation from a certified jeweller.

Reality:

You can get Jewellery and Watch Insurance for inherited, gifted, or long-owned pieces as long as you can provide proof of ownership and value.

Myth 8: One Policy Covers Everything

While bundling may seem convenient, not all insurance policies are created equal. A general personal property rider on your home insurance won’t give you the comprehensive protection that a Watch Insurance or Gem Insurance policy provides.

Reality:

Specialized coverage is tailored to the nature of the item — whether it’s the high risk of damage to a watch mechanism or the specific settings of a gemstone. It’s always better to opt for a dedicated policy.

Myth 9: Appraisal Isn’t Necessary

Some skip getting a professional appraisal, assuming the price they paid is enough. However, the market value of gems and watches can fluctuate, and insurance companies rely on current appraisals to issue accurate coverage.

Reality:

Without an updated appraisal, you risk being underinsured — which means your claim may not fully cover your loss.

Myth 10: It’s Not Worth the Effort

People often dismiss the need for Gem Insurance or Jewellery and Watch Insurance thinking the chances of loss or damage are too low. Unfortunately, loss, theft, and accidents are more common than you think, especially during travel, relocation, or even regular use.

Reality:

Insurance protects you from the unexpected. It’s a small effort that can save you from major financial loss and emotional stress.

Final Thoughts

Valuable items like luxury watches, fine jewellery, and precious gems are more than just fashion statements — they are investments and heirlooms. Believing these common myths can leave you unprotected and vulnerable. Whether it’s Watch Insurance, Jewellery and Watch Insurance, or Gem Insurance, having the right policy is essential for safeguarding your prized possessions.