Does Watch Insurance Cover Accidental Damage and Theft?

For watch lovers, a timepiece is never just about telling time. It’s an extension of who you are, your style, your achievements, and in many cases, a piece of history that lives on your wrist. Whether it’s a classic Rolex, a cutting-edge Omega, or a rare Patek Philippe, the idea of it being lost, stolen, or damaged? That’s the kind of thought that makes your heart race.

That’s why luxury watch insurance exists, to cover you if the unexpected happens. But what exactly does it include? More importantly, does it cover accidental damage and theft? Let’s find out.

Covering What Matters: Why Insure Your Watch?

A luxury watch isn’t just another accessory—it’s an investment, a collector’s item, and in most cases, a piece of personal history. Whether it’s a scratch on the sapphire crystal, an unexpected drop onto a hard surface, or the devastating loss of your timepiece, even a small mishap can have a big impact.

You might think your home insurance has your watch covered, but the fine print sometimes tells a different story. Some policies come with limits, exclusions, and depreciation clauses that could leave you with far less than your watch is worth if something happens. That’s where specialist watch insurance comes in. Designed specifically for high-value timepieces, offering coverage that truly reflects their worth and the risks they face. Check individual terms and conditions of each policy for an accurate comparison. 

Does Watch Insurance Cover Accidental Damage?

The short answer? Yes—but it depends on the policy. But what does accidental damage really mean for your watch? A cracked sapphire crystal after a slip of the hand? Water damage from an unexpected downpour? The details matter, so let’s take a closer look at what’s usually covered and where you might need to tread carefully. 

What Counts as Accidental Damage?

Accidental damage is defined as any unexpected, unintentional harm that affects your watch—and let’s be honest, accidents happen more easily than we think. One moment it’s securely on your wrist, and the next, it’s hitting the bathroom tiles or knocking against a countertop. Here are some common mishaps that fall under accidental damage:

• Drops and falls – A moment of distraction, and your watch slips from your wrist or dresser, leading to cracks, internal damage, or misalignment. Sometimes this also includes wearing your watch when you take a tumble which can cause damage.
• Scratched sapphire crystal – Despite its durability, even sapphire crystal isn’t invincible. A rough surface or an unfortunate scrape can leave visible marks.
• Water damage – Even if your watch is water-resistant, an unexpected swim or a faulty seal could allow moisture to seep in, causing serious internal issues. This is why regular maintenance is critical to the upkeep of the water resistance.
• Impact damage – A quick wrist movement near a car door, a heavy object knocking against it, or a sudden jolt can affect the delicate mechanics inside.

Luxury watches are crafted with incredible precision, but let’s be real—life happens. One unexpected knock or drop, and your watch could be out of sync or worse, seriously damaged. That’s why having insurance that covers accidental damage isn’t just a nice-to-have, it may be a smart move to keep your timepiece in top shape, no matter what the day throws at you.

What Might Not Be Covered?

While luxury watch insurance covers a lot, it doesn’t cover everything. Like any policy, there are exclusions you’ll want to be aware of before assuming you’re fully covered. Some common ones may include:

• Wear and tear – Over time, things like a stretched bracelet, faded bezel, or minor scratches are just part of owning a watch and may not be covered.
• Unauthorised repairs or modifications – If a non-certified watchmaker opens up your timepiece and something goes wrong, damage incurred may not be covered under your policy.
• Negligence or intentional damage – Leaving your watch somewhere unsafe, like a gym locker or a car dashboard in the sun, may not be covered.

Expert Tip: Always check the details of your policy to understand what’s covered and what’s excluded.

Does Watch Insurance Cover Theft?

Yes, some specialist watch insurance policies cover theft, giving you financial security if your timepiece is stolen. Some home insurance policies may only cover theft under specific conditions or with limited payouts. Specialist insurance is designed to ensure you’re usually not left out of pocket if your watch is taken.

What Types of Theft Could Be Covered?

Coverage varies between policies, but some include cover against:

• Burglary – If someone breaks into your home and steals your watch, you may be covered. Some policies may also cover theft from hotel rooms while travelling or secure storage.
• Mugging or pickpocketing – If your watch is stolen directly from you, whether through force or threat, a specialist policy often provides coverage.
• Mysterious disappearance – If your watch vanishes under unclear circumstances such as: being lost or stolen without obvious evidence—some policies may still cover it. However, insurers often require proof of theft, like a police report or evidence of forced entry, before approving a claim.

Not all policies treat theft the same way. Some may require you to take reasonable precautions, like keeping your watch in a safe at home or not leaving it unattended in public. Always check your policy details to understand what’s covered and any conditions that apply.

What You Should Know About Theft Coverage

Having theft coverage is a consideration for some luxury watch owners, but like all insurance, there are a few important details to be aware of. Insurers may have certain conditions in place to prevent fraud and ensure claims are valid—so it’s worth knowing what’s required before you ever need to make a claim. Here are a few key things to keep in mind:

• Storage requirements – If your watch is particularly valuable, some insurers may require it to be stored in a safe when you’re not wearing it. This is especially important for high-end models that are more likely to be targeted by thieves.
• Police reports – If your watch is stolen, you’ll likely need to file a police report as part of your claim. Insurers typically require this as official proof of theft before processing a claim.
• Proof of ownership – The more documentation you have, the smoother your claim process will be. Keep purchase receipts, authentication papers, service records, and even photos of your watch to verify its value and condition.
• Worldwide coverage – If you wear your watch while travelling, check whether your policy covers theft outside of your home, including outside of Australia. Some policies provide global coverage, while others may have restrictions depending on the country or situation.

Expert Tip: Keeping digital copies of your receipts and watch documents can make things easier if you ever need to file a claim. A little preparation now can save a lot of stress later!

What You May Want to Look for in a Watch Insurance Policy

Thinking about insuring your luxury watch? Not all policies are the same, and the last thing you want is to assume you're covered—only to find out later that you’re not. Here are a few key things you may want to look for when choosing a policy that actually works for you.

Worldwide Coverage

A good policy should have your back whether you’re at home, on holiday in Europe, or wearing your watch to a fancy dinner in Sydney. After all, a luxury timepiece isn’t meant to sit in a drawer—it’s meant to be worn and enjoyed, no matter where life takes you.

Return to Your Original or Preferred Jeweller

If your watch needs repairs or—worst case—replacement, being able to go back to your trusted jeweller or boutique is a game-changer. They know your watch, they understand its value, and you can be confident you’re getting genuine parts and expert service.

Additional Coverage Beyond the Insured Value

Some policies offer extra coverage for example offering to cover up to 50% on top of the sum insured to account for market fluctuations in the event of a claim when required. This can be crucial, especially if the value of your watch has increased since you insured it or renewed your policy. Imagine buying a Rolex Daytona a few years ago, only for its value to skyrocket—having an extra buffer may ensure that you won’t be left out of pocket if you need a replacement.

A Hassle-Free Claims Process

Let’s be honest insurance claims can sometimes feel like a battle. Look for an insurer known for quick, transparent claims handling, especially when it comes to high-value items like watches. The last thing you want is to be stuck in endless back-and-forths just to get what you’re covered for.

Check out some of our 5 star reviews from our customers. 

How to Make a Claim for a Damaged or Stolen Watch

Losing or damaging your watch is a gut-wrenching moment, but if it happens, knowing how to make a claim can save you a whole lot of stress. Here are some of Q Report’s claim steps on getting things sorted quickly and getting your timepiece back where it belongs—on your wrist.

Step 1:

If your watch has been stolen, file a police report as soon as possible. Q Report and many other insurers usually require this as proof, and reporting it quickly can also improve the chances of recovery. If your watch is damaged, take clear photos from multiple angles to document the extent of the damage and submit a statutory declaration documenting when the damage occurred.

Step 2:

Reach out to us and provide all the key details—what happened, where it happened, and when. Be as specific as possible, as this will usually help speed up the claims process.

Step 3:

Having the right paperwork ready can make a huge difference. You’ll likely need:

• A copy of the police report (if stolen)
• The Statutory Declaration number
• Proof of purchase or valuation documents
• Photos of the watch before and after damage (if applicable)

Our claims representatives will discuss the paperwork requirements with you when you lodge your claim. Some insurers may also ask for service records or authentication certificates, so keeping all your watch-related paperwork in one place is always a good idea.

Step 4:

Once you’ve submitted everything, the insurer will assess your claim. If approved, your Q Report claims representative will discuss  your preferred arrangement for repairs or replacement. Some people value this step being smooth and hassle-free.

A straightforward claims process is usually a sign of a great insurer. If you ever need to make a claim, you generally want it to be quick, fair, and stress-free—so it’s worth choosing a provider known for handling claims efficiently.

Is Insuring Your Luxury Watch the Right Choice?

Luxury watches do more than just keep time—they hold meaning. Maybe yours marks a big milestone, has been passed down through the family, or reflects your love for top-notch craftsmanship. Whatever the story behind it, chances are it’s more than just a watch to you—it’s something truly special.

So, should you insure it? That’s completely your call. Some people are happy to take the gamble, while others prefer knowing they’re covered if something goes wrong. There’s no one-size-fits-all answer—just what feels right for you.

At Q Report, we’re here to give you the facts so you can make the best decision for your situation. Specialist luxury watch insurance could cover things like accidental damage and theft. And if you ever need to make a claim, you’ll have the freedom to go back to your trusted jeweller or watch specialist to get things sorted properly.

This article is advisory in nature and is offered as a resource to be used together with your professional insurance advice. It is an overview only and is not intended as a substitute for consultation with your insurance advisor or other professional advice.