Insuring the Apple Watch

The release of the Apple Watch last month created quite a stir, and early estimates are that Apple sold out within minutes of opening the pre-order website and nearly a million watches were sold the first week of retail distribution.

While the low end model might not cause as many insurance issues (it retails for $549) Apple also offers premium editions of the watch that range from $10,000 to $17,000.

A traditional jewelry floater or jewelry extension on a homeowners policy probably isn’t the best place to insure a $17,000 wearable computer! Water damage alone would create some nightmare claims scenarios.

Here’s a very good article from JCRS that examines the issue in detail. Their recommendation is to NOT insure the Apple watch as jewelry. They do a good job of comparing the Apple watch to jewelry, portable computing devices, cell phones and wearable medical equipment.

Bottom line? Make sure the carrier you are using to insure an Apple Watch has thought it through and that you’re getting a fair rate and offering the coverages actually needed for this new technology.