Watches and jewellery items are common targets of theft out of the home, from your desk at work or your car. If a watch is valuable, such as an antique or a Rolex, you may end up filing a claim with your insurance company for replacement or reimbursement. If your watch is found or recovered by the police and you have been paid for an insurance claim, it should be reported to your insurance carrier as soon as possible.
Homeowner's policies often cover theft or destruction of jewellery and other valuables under the contents language of the policy. Rare or expensive pieces may be covered under an additional endorsement called inland marine coverage. If a covered item is stolen or lost, you may file a claim with your carrier to be made whole for your loss. Sometimes, the item is recovered when a thief is captured or it may be found by the homeowner. If you have been paid for the loss of your watch and you recover it by any means in any condition, this should be reported to your insurance carrier. The carrier will give you the option of repaying the claim to them directly or giving the watch to them to dispose of as they see fit. If the watch has sentimental value, you may choose to repay the claim so you can keep the watch in your possession.
Some insurance companies hold salvage auctions either publicly or internally for employees. Internal auctions allow insurance employees to purchase recovered items at greatly reduced prices. You may be able to bid on your item if the carrier allows this option. There are also salvage companies that may contract with carriers to pick up their salvage items and resell them for a percentage of the selling price.
If you do not report a recovered item and this activity is discovered by your carrier, you can be prosecuted for insurance fraud as a federal offence with consequences of possible fines and imprisonment.