It’s one of the most special and memorable days of anyone’s life: your beloved has gotten down on one knee and asked the question you’ve been hoping to hear. “Will you…?” Perhaps they presented you with a newly purchased and specially chosen diamond engagement ring. Perhaps it’s a family heirloom, or you plan to go together to a jewelry store to choose what you’ll wear on your ring finger for many years to come.
Regardless of what route you end up taking, an engagement ring is a high-value item, both in sentimentality and in price. Protecting it from life’s many unforeseen circumstances should be on your radar as you begin your wedding and honeymoon plans. During your many conversations about the future, you and your betrothed should consider purchasing engagement ring insurance in order to protect this valuable asset to the best of your ability.
Are you unsure where to start? Keep reading for your ultimate guide to insuring your engagement ring in 2021!
What is Engagement Ring Insurance?
Primarily, engagement ring insurance gives you peace of mind if anything were ever to happen, including loss, theft, or damage. Did you take off your ring to wash your hands, only to have it disappear down the garbage disposal? Did it get stolen while on vacation? Lose a stone from your setting? Having engagement ring insurance may not replace the sentimental memories, but it can help you replace the ring or stones themselves. It can also reimburse or even help pay for repairs if any damage were to occur.
The goal is to protect you from any high out-of-pocket costs if you need to replace your engagement ring at some point in the future due to an event such as damage, theft, or loss. If your ring is insured, you’d be able to receive a replacement or reimbursement. Monthly premiums are typically low and are calculated according to the ring’s value. Plans usually don’t have a deductible (but make sure this is true for your plan).
Why Should I Invest in Engagement Ring Insurance?
Did you know that the average cost of a woman’s engagement ring in 2020 was $5,500 and wedding bands an additional $900? Even men’s wedding bands are averaging approximately $500. While the actual price of a ring may vary widely depending on budget and taste, the reality is that it’s an expensive piece of jewelry that deserves to be protected just in case the unthinkable were to happen.
Your renter’s or homeowner’s policy will often cover jewelry theft – but only up to a certain amount. In the state of Massachusetts, that amount is $1000. However, your existing insurance probably doesn’t cover damage or loss, nor take into consideration that your ring’s financial value may be significantly higher than the amount your policy will cover.
That’s when purchasing additional engagement ring coverage comes in. Oftentimes, you can purchase a rider to your existing policy. This will give you additional coverage, usually for an affordable additional cost. You can also purchase a separate policy just for your ring from an insurance agent or company specializing in jewelry.
Get an appraisal. Make sure that you take your ring to a certified gemologist to get a thorough appraisal. The cost will likely depend on your ring’s design and complexity and usually is charged by the hour.
Appraisals will consist of a physical description of your ring, as well as take note of the dimensions, measurements, and craftsmanship involved in its creation. Diamonds are usually examined with the 4Cs: color, cut, clarity, and carat.
The appraisal should be based on what it would cost to replace your ring, not necessarily its fair market value. It’s also a good idea to get your ring re-appraised regularly, perhaps every 5 years or so, to be sure that the appraisal reflects the various metals and stones’ value since these items can fluctuate.
Make sure you place the appraisal documents in a secure and protected place, such as a safety deposit box or a fire-proof safe.
Talk to your current insurer. If you already have either homeowner’s or renter’s insurance, ask your agent if they offer engagement ring riders or even separate policies. Make sure that you know what your policy would consist of before you sign off on anything. Specifically, make sure that any and all eventualities (such as loss, damage, or theft) are covered. Ask your insurance carrier what types of claims would not be covered under the offered plan.
Gather Your Documents
Be sure to bring your appraisal documents, as well as any receipts, with you when you go to set up your policy. It’s also a great idea to have a few high-quality photographs of your ring as well (just in case).
Items to Consider When Purchasing a Policy
It can be tedious to pour over legal documents, especially if you’re not always sure what you’re reading. However, it’s vital that you understand what your policy covers, but more importantly, what it will not cover. This will protect you from any unexpected (and unpleasant) surprises should the day ever come when you have to make a claim on your personal property policy. You’ll also have peace of mind when you’re wearing your ring.
As with everything you sign, make sure you always read and understand the policy before putting your name on it. Make sure to ask a lot of questions and feel confident in what you’re paying for before making any decisions. If you need to talk to your insurance representative to make changes, have that conversation before you start signing away.
Below, you’ll find a list of potential items to consider (and ask) when talking to someone about insuring your engagement ring. Make sure you have these items in mind as you shop around and engage in conversations with possible insurance companies.
How much does it cost to insure an engagement ring?
The cost to insure your ring will depend on numerous factors, including the appraisal value and where you live. A general rule, plan on approximately one to two percent of your ring’s value. For example, if your ring is appraised at $6,000, it would cost around $60 to $120 a year to insure it. That’s about $5 to $10 a month.
However, that number can change depending on your plan and what it covers. Some plans will give you a price reduction if you have a safety deposit box or a safe where you can secure your valuables when not wearing them.
What type of insurance does an engagement ring need?
Ask your insurer about the following types of coverage: damage (due to flood, fire, earthquake, as well as lost stones), accidental loss or mysterious disappearance, theft, and maybe even travel. You don’t want to find that your policy has gaps in it after you may need to make a claim!
What types of loss/damages are covered?
This will depend on your specific plan! However, life is full of unexpected and unpredictable events. It’s smarter to make sure you’re covered as much as possible to help protect you and your ring. Ask specific and detailed questions to help you understand what is covered.
How (and how much) will I get paid if something actually happens?
Ask your insurer! Sometimes they have very specific ways to either replace or reimburse you for your ring.
Generally, if you were to need to make a claim, you can do that directly with your insurance agent or company. They may have one of two ways for you to be able to get a ring back on that important finger as soon as possible.
The first way is reimbursement: they will cut you a check based on the appraisal value. This amount is generally the cost that it would take for you to go into a jewelry store and purchase or commission another ring of similar value and quality. You can then take that money to buy another ring.
The second approach is a replacement. Many companies will require you to work directly with a jeweler in order to get a comparable replacement for your lost or stolen ring. Sometimes you have to work with a specific jeweler designated by the insurance company, but not always. The insurance company would then pay the jeweler directly.
Either way, make sure you know which approach your policy will require before you move forward.
What kind of documents do I need to get my ring insured?
Make sure you have your current appraisal, as well as any copies of your existing homeowner or renter’s insurance. Receipts and photographs can also come in helpful.
Will adding my engagement ring to my policy affect my premium?
Yes, but not by a significant amount. Again, this depends on the value of your ring, but the additional cost typically adds up to the price of a few cups of coffee a month or less.
How do I add an engagement ring to my policy?
That’s easy. Just contact your insurance agent or company! They will be able to work with you to add a rider or separate policy to your account. Just be sure always to read and know what you’re signing first.
Frequently Asked Questions
Is my diamond ring covered if I lose it, or it mysteriously disappears?
That depends on your policy. If you are relying solely on the coverage provided by your homeowner’s or renter’s insurance, without any additional rider or separate policy, then probably not. Typically, your homeowner’s insurance would cover theft.
If I have a jewelry claim, will the insurance company purchase a replacement item through a specified jeweler of their choice, or will they pay to replace the ring?
Again, check your policy. Or, better yet, make sure before you buy the policy that the replacement or reimbursement for your engagement ring is in line with what you want. Different policies could have wildly different approaches if you needed your ring replaced.
Some may require you to go to a specific jeweler in order to get a replica made. Others will simply pay you the replacement cost via check.
What should I do if my diamond ring is stolen?
First and foremost, report the theft to the local authorities. Then be sure to contact your insurance agent as soon as possible. You may need to have a copy of the police report to show when you make your claim.
Is my jewelry covered for damage if I insure it?
Read your policy carefully before signing off on it. If you’re purchasing additional coverage specifically for your engagement ring and wedding band, you should make sure that your insurance plan will cover the damage claim. It will not cover normal wear and tear, though.
Does my home insurance give any coverage for jewelry?
Yes! It will differ from state to state, but in Massachusetts, the coverage limit is $1000. If your ring costs more than that, an additional rider through your existing coverage may be exactly what you need. Adding a Personal Articles Policy for your engagement ring, wedding band, and any other valuable jewelry will ensure that your assets are protected against a significant financial loss.
Ready to Protect Your Ring?
Your engagement story and wedding day are significant and memorable days in your life. The rings you will wear represent much more than the stones and metal that make them up. They are also a symbol of the love and devotion between you and your partner, as well as a celebration of the commitment you will be making to one another. When it comes to such a significant and expensive symbol token of your love, isn’t it worth taking additional steps to protect your engagement ring?
We’re here to help! Contact us today to see how we can help you with engagement ring insurance. We are happy to answer any questions you have to help you safeguard your precious jewelry from life’s unknowns. And as you plan your future together, make sure to check out some of our other products that can help you make the most out of protecting your assets.