My insurance policy required an appraisal every 3 years. I ignored it. My Patek Philippe Aquanaut was insured for its 2019 value of $25,000. It was stolen in 2026. The market value was $75,000. The insurance company sent me $25,000. I lost $50,000 because I was too lazy to pay $150 for a new appraisal.
Key Takeaways
- Inflation Guard is Weak: Standard policies increase coverage by 2-3% per year. Watch markets can jump 50% in a year. The built-in inflation guard is not enough.
- The “Co-Insurance” Penalty: Some commercial-style policies penalize you if you are underinsured (e.g., if you insure for 50% of value, they only pay 50% of the claim).
- 3-Year Rule: Most carriers (JM) require updated appraisals every 2-3 years to ensure premiums match risk. If you don’t update, you are locked at the old value.
- Digital Appraisals: In 2026, services like Wax or Chrono24 data can sometimes serve as “market evidence” to update values without a physical inspection.
The “Why” (The Trap)
The trap is “Static Limits in a Dynamic Market.”
You pay premiums based on the limit. If the limit is low, the premium is low. You feel like you are saving money.
But insurance is “Replacement Cost.” If you can’t replace the item with the payout, the insurance failed.
Carriers don’t automatically increase your limit to match the grey market because that would drastically increase your bill without your permission. You have to ask for it.
The Investigation (My Analysis of Updating Values)
How hard is it to stay current?
Wax Insurance
- The Innovation: Their app syncs with market data. It sends a push notification: “Your Aquanaut is now worth $75k. Swipe to update coverage.”
- The Verdict: The safest option for volatile hype watches.
Jewelers Mutual
- The Process: You must go to a jeweler. Pay for an appraisal (
100−100−150). Upload it. Wait for approval. - The Hassle: High friction. Most people forget to do it.
Hodinkee
- The Feature: “150% Inflation Protection.” If you insured for $25k, they pay up to $37.5k. Still not enough for the Aquanaut jump, but better than nothing.
[IMAGE: Chart showing “Insured Value” flatline vs “Market Value” spike, highlighting the “Out of Pocket Gap”]
Comparison Table
| Feature | Standard Policy | Hodinkee | Wax |
| Auto-Update | No | No | Yes (App Prompt) |
| Inflation Buffer | ~2% / year | Up to 50% | Market Based |
| Appraisal Needed | Yes (Physical) | No (Data based) | No (Data based) |
Step-by-Step Action Plan
- Audit Your Collection: Go to Chrono24. Check the current “Sold” listings for your references.
- Calculate the Gap: If coverage is <80% of current market price, you are in the danger zone.
- Request a “Desktop Appraisal”: Ask your jeweler if they can update the value based on market data without seeing the watch again (if they saw it recently). Many will do this for a lower fee.
- Switch to Agreed Value: Ensure your policy is “Agreed Value.” If it’s not, the insurer can argue the market price is lower than you think.
FAQ
Do I need an appraisal for a new watch?
Usually the sales receipt works for the first 3-5 years.
Does an appraisal guarantee payout?
It guarantees the limit. It doesn’t guarantee they won’t try to replace it for cheaper if they can find one.
Can I use a Chrono24 screenshot?
For Hodinkee/Wax: Often yes.
For JM/State Farm: No, they want a signed document from a gemologist/jeweler.