A Chubb Insurance policyholder lost a vintage Rolex watch whilst out sailing. The watch was of huge sentimental value as it had belonged to the policyholder’s father. Understanding this, the insurer offered to send out a diver to see if it could be located. Fortunately, the watch was found. However, if it had not been recovered, the insurer would have paid the agreed value of £35,000 with no deductions – letting the watch be replaced, or not, as the policyholder wished.
A standard home insurer, if it had agreed to cover the watch at all, is unlikely to have made any attempt to recover the watch, despite its sentimental value. Instead, the insurer would simply have offered the trade price at the time of around £28,000, less any excess; a shortfall of over £7,000.