My basement flooded. My watches were safe in the bank vault, but my collection of boxes and papers (the “Full Sets”) was on a shelf in the basement. They turned to mush. The watches are fine, but the value of the watches dropped by 20% because they are now “naked” (watch only). I filed a claim for the “Diminished Value.”
Key Takeaways
- The “Set” Clause: High-end policies recognize that the “value” includes the packaging. If the box/papers are destroyed, it is a partial loss of the insured item’s value.
- Proof of Possession: You must prove you had the papers. Photos of the full set are essential.
- Valuation Difficulty: Adjusters struggle to price “cardboard.” You need to show market comps: “Rolex Daytona Full Set (
30k)"vs"RolexDaytonaWatchOnly(30k)"vs"RolexDaytonaWatchOnly(25k).” The claim is for the $5k delta. - Separate Storage Risk: Storing papers separate from watches is smart for theft, but exposes them to different risks (flood/fire).
The “Why” (The Trap)
The trap is “Definition of Covered Property.”
Is the paper part of the “Watch”?
Yes. The policy insures the “Item” described in the appraisal. The appraisal usually says “Rolex Submariner with Box and Papers.”
Therefore, damage to the papers is damage to the insured item.
Standard homeowners adjusters won’t understand this (“It’s just a wet manual”). Specialist adjusters (Chubb/JM) will.
The Investigation (My Analysis of Payouts)
I asked how they handle “soggy cardboard.”
Hodinkee / Chubb
- The Response: They pay for “Partial Loss.”
- The Method: You establish the percentage drop in value (e.g., 15%). They pay that amount. You keep the watch.
Jewelers Mutual
- The Response: Similar. They pay for the replacement of the box (buying one on eBay) and the diminished value of the lost warranty card (which cannot be replaced).
Standard Homeowners
- The Denial: “We insure the personal property. The paper has no intrinsic value.” Denied.
[IMAGE: Photo of water-damaged Rolex green boxes and warranty cards peeling apart]
Comparison Table
| Item | Insurable Impact | Replacement Strategy |
| The Watch | 100% | N/A |
| The Box | ~2-5% | Buy on eBay |
| Warranty Card | ~10-15% | Irreplaceable (Diminished Value Claim) |
| Manuals/Tags | <1% | Buy on eBay |
Step-by-Step Action Plan
- Digitize Everything: Scan your warranty cards today. Upload to cloud.
- Ziploc Bags: Put your papers in waterproof freezer bags inside the box. Or use a Pelican case for storage.
- Store High: Do not store boxes on the floor. Top shelf only.
- Agreed Value Description: Ensure your policy description specifically says “Full Set.” If it just says “Rolex Watch,” they might argue the papers weren’t insured.
FAQ
Can I get a replacement card from Rolex?
No. They never re-issue warranty cards. Once gone, it’s gone.
Is the box covered for theft?
Yes. If someone steals the empty box (weird, but happens), you can claim the cost to buy a replacement box.
What about Patek Archives?
You can order a new Extract from the Archives (for a fee). Insurance covers that fee.