I have a collection worth $500,000. To save money on premiums, I agreed to a “In-Safe Warranty.” One Tuesday night, I took my A. Lange & Söhne out of the safe to wind it, got distracted, and left it on my desk. I went to bed. Burglars broke in and swept the desk. Claim denied. “Breach of Warranty: Item was not in the safe while not being worn.”
Key Takeaways
- The “In-Safe” Discount Trap: Insurers offer massive discounts (up to 50%) if you agree to keep watches in a TL-15 or TL-30 rated safe when not worn.
- Strict Compliance: If you agree to this, you have zero grace period. If it is not on your wrist and not in the safe, it is uninsured.
- “bank Vault” Restrictions: Some policies require the watches to be in a bank safety deposit box, allowing you to take them out only with prior notice.
- The “10 PM” Clause: Some high-value homeowner policies imply that jewelry left out overnight is “negligence,” though the specific “In-Safe Warranty” is the real killer.
The “Why” (The Trap)
The trap is “Protective Safeguards Endorsement.”
This is a contract within your policy. It states: “It is a condition of this insurance that the insured property be kept in a locked safe… when not in use.”
“In use” means on your body.
Sitting on a desk is not “in use.”
By leaving it out, you violated the contract conditions. The theft is a covered peril, but your breach of contract voids the coverage.
The Investigation (My Analysis of 3 Carriers)
I looked at who forces these warranties.
Lloyd’s of London (High Value)
- The Stance: Very strict. For collections >$250k, they almost always mandate a safe.
- The Risk: If you forget once, you lose everything.
Hodinkee / Chubb
- The Winner: They generally do not require safe warranties for collections under $1M (varies by profile).
- The Logic: They know collectors like to look at their watches. They price the risk higher, but they don’t deny you for leaving it on a desk.
Jewelers Mutual
- The Middle Ground: They ask if you have a safe. If you say yes, you get a discount.
- The Catch: If you took the discount, you must use the safe. If you didn’t take the discount, you are free to leave it out.
[IMAGE: Photo of a high-security TL-30 safe with the door open and empty watch slots]
Comparison Table
| Feature | Policy WITH Safe Warranty | Policy WITHOUT Safe Warranty |
| Annual Premium | Lower ( | Higher ( |
| Coverage Condition | Must be in safe if not worn | Covered anywhere |
| “Forgot on Desk” Risk | Denied | Covered |
| Safe Rating Needed | TL-15 / TL-30 | None |
Step-by-Step Action Plan
- Read Your Endorsements: Search your policy for “Protective Safeguards” or “Warranty.”
- Remove the Warranty: If you are forgetful (like me), call your agent. “I want to remove the In-Safe Warranty. How much will my premium go up?” It is worth the extra cost.
- Define “In Use”: If you must keep the warranty, ask for a “being worn or being worked on” definition.
- Buy a Winder: If the watch is on a winder, is it “in use”? Usually NO. It must be in the safe. Put the winder inside the safe.
FAQ
Does a gun safe count?
Often no. Insurers want “Tool Resistant” (TL) safes, not thin metal gun cabinets (RSC). Check the required rating.
What if the burglars force me to open the safe?
That is “Robbery” (under duress), not “Burglary.” Coverage usually applies because you were threatened.
Can I keep one watch out?
Only if you specifically exclude that one watch from the warranty conditions, which is complicated. Better to remove the warranty entirely.