An engagement ring is an important symbol of a couple’s commitment. While insurance may be the last thing on your mind right now, it’s important to be practical. With the average engagement ring costing upwards of $6,000, you will absolutely want to safeguard this precious item.
Frequently Asked Questions
Is it worth it to insure the engagement ring?
It is worth insuring your engagement ring. Whether it is a small or large investment, avoiding a tragedy happening to your ring is priceless. Apart from theft or loss, jewelry is fragile, and even the perfectly made ring can suffer when knocked against hard surfaces. Having peace of mind by insuring your engagement ring will avoid burdens later on.
Should you sleep with your engagement ring on?
The short answer is no. We usually do not want to take off our beautiful engagement rings from the moment we receive them, but sleeping with jewelry is not ideal. To avoid damage and tear, it is best to take off your engagement ring before going to bed. There is a slight risk to sleeping with your ring, not only because of difficulty to take it off in the morning due to swelling but most importantly to avoid hitting it against the bed or nightstand in your sleep. Even though it is not the most unsafe activity to do while wearing your ring, it is better to be safe than sorry and take it off before bedtime.
Understanding Engagement Ring Insurance
According to Sue Seabury, a regular contributor to The Pearl Source, understanding the intricacies of engagement ring insurance policies is crucial for anyone looking to protect their cherished symbol of love.
Why insure your ring? For several thousand good reasons. In a recent survey of engagement ring buyers, nearly half of respondents said they spent more on their engagement ring than on their first car. Some 70% of survey respondents said their engagement ring was one of the most expensive items they owned. Consider also that some 60% of survey respondents admitted to keeping their ring on while washing their hands. Engagement ring insurance is a small price to pay for peace of mind.
Engagement ring insurance pays for the repair or replacement value of the ring if it is damaged, lost, or stolen. Like home or auto insurance, the cost of the policy will depend on several factors including the value of the ring, where you live and the rate of theft in the area, and whether or not there is a deductible. As a rule of thumb, you can expect to pay around 1-3% of the ring’s value (approximately $60-$180 for a $6,000 ring). Coverage usually begins within a few days of purchasing the insurance, and most engagement ring policies provide coverage regardless of where in the world you travel.
Types of Engagement Ring Insurance
Homeowner’s or Renter’s Extension
One option for engagement ring insurance is to add a jewelry extension (known as a rider) to your existing homeowner’s or renter’s policy. But you should keep in mind that if you make a claim, it may increase your premium for the entire policy and may even affect your eligibility when it comes time to renew. Homeowner’s and renter’s insurance also usually have lower replacement amount limits, often around $1,500, and it may not cover repairs. You can sometimes pay more to raise the limit (called a ‘personal articles floater’), but even that may only elevate the amount to $2,500, falling well short of the value of many engagement rings.
A stand-alone engagement ring policy is a popular choice because it covers the widest range of circumstances. A good ‘all risk’ policy will cover:
- damage, including from fire
- accidental loss, (down the drain, in the ocean, etc)
- mysterious disappearance (don’t know how it was lost)
- repairs of normal wear and tear, including bent prongs and chipped stones
A stand-alone policy may be adjusted annually for inflation, or you may opt to have your ring reappraised every few years and re-evaluate the insurance accordingly. Stand-alone insurance may have a deductible, although many policies have no deductible.
Note that not all engagement ring insurance covers ‘all risk,’ so be sure to carefully read and understand the terms of any policy you are considering.
Insurance: What to Look for
Engagement ring insurance covers valuables and jewelry. When considering an engagement ring policy, you can explore a “rider”, which is an addition to your existing policy, or buy a specialized policy (jewelry specific) for your engagement ring and other jewelry pieces you already own if that is the case.
Insurance coverage for your engagement ring will depend on the policy that you chose. Some policies have a deductible and some do not. When selecting an engagement ring policy it is important to note the pros and cons of adding it to your existing policy.
If that is the case and you submit a claim, all of your policies will probably skyrocket as a result. On the other hand, specialized jewelry policies like Jeweler’s Mutual will be specific to your ring and valuables and will consider the coverage to a higher extent than any general insurance company. Insurance companies will probably have different plans to offer you for your engagement ring. It is important to ask if they cover loss, theft, and/or mysterious disappearances; some plans will include all of the above, and others will include one or the other.
It is crucial to understand your policy thoroughly and that you have all the facts before selecting your engagement ring insurance. We strongly advise you to evaluate all of your options before purchasing the final one.
As I mentioned earlier, jewelry is fragile and it most probably will need repair and maintenance down the line. First of all, it is important to understand any warranty that the company or jeweler you bought your engagement ring from may offer and the time that it will be valid.
When considering an engagement ring policy it is important to ask your agent about deductibles and premiums if you need to repair your engagement ring. It is also important to ask if your policy will restrict who can repair your engagement ring or where you can purchase a new one if it needs to be replaced. Some policies will limit these as well as the type of repairs that can be made, so I strongly suggest that you ask these questions before selecting your plan.
Assessment of value
Before purchasing an engagement ring, I suggest that soon-to-be fiances take into consideration buying jewelry from reputable sources that use independent laboratories such as the Gemological Institute of America (GIA). This way, they can provide a diamond certification and a grading report with your ring.
To purchase engagement ring insurance you should have as much information about your engagement ring as possible. Moreover, photos, your diamond certificate, grading report, and original receipts are to be kept in a safe place at all times. Most importantly, you should get an appraisal of your ring with a quality gemologist before you purchase your insurance, as an accurate appraisal will avoid financial loss and large premiums.
A combination of all of these factors will determine the details and price of your engagement ring insurance, which is why paying close attention to their accuracy will make adding an insurance plan to it a breeze.
There are three main documents that you should have when considering purchasing insurance for your engagement ring.
- Original receipts: keep all receipts and proof of purchase in a safe place from the moment your ring was picked up from your jeweler. It is important to have the original purchase price and date when applying for an insurance policy because this is a factor that will dictate its final cost.
- Grading report or Diamond Certificate: if your diamond or precious stone has a certificate or report, it is important to receive the original document from your jeweler. This will include all the details about your stone’s weight and characteristics, which will help the gemologist write a more accurate appraisal.
- Appraisal: make sure you take your engagement ring to a reputable gemologist. It is crucial not to compromise on this since the more accurate it is, the more accurate your ring value will come out to be. This is important because an insurance company will take into account this value when assessing your replacement value and repair costs.
Engagement Ring Insurance Cost
Premiums can vary on some factors, including the value of your ring, where you live, and your current insurance policy costs. As a general rule of thumb, you will pay about 1-2% of your engagement ring cost annually.
Rates will be different in many states of the country, as well as deductibles will differ depending on which company you choose to insure your engagement ring or whether you decide to add it to an existing policy or not. Most importantly, premiums will also be higher depending on whether you have lower or no deductibles. On average, the cost of an engagement ring insurance will be 1-2% of its value on an annual basis. So, if your ring was worth $5,000, you will be paying $50-$100 annually depending on the other factors mentioned above.
A deductible is the amount of money that you will pay before an insurance company pays for your claim. For example, if your deductible is $100, and your claim is for a $500 repair, your insurance company will pay for $400 of that cost. On the contrary, if your repair is $500, and your deductible is $0, the insurance company will take full responsibility for that cost.
A $0 deductible means you will have to pay $0 out-of-pocket if anything happens to your ring. However, selecting this option will also mean that you will probably pay a higher premium annually, which is the cost of your insurance plan. When making this decision, it is important to consider how much are you willing to spend in the event of a theft, loss, or damage of your ring.
My advice is to consider your options and your ability to budget for those in the future, as a $0 deductible may be better for some and a lower insurance plan may be better for others. Either way, an insurance plan for your engagement ring is already a very important investment, but one that will avoid headaches in the long run in the case that something happens to your beloved piece of jewelry.
At Jeweler’s Mutual, an independent jewelry-specific insurance company, the policy minimum is $25-$30, depending on the state you live in. There is no minimum value for insuring a jewelry piece, but this will essentially be its cost whether it is worth the same for a higher-valued piece.
What isn’t covered under insurance?
Engagement rings can be covered for most about anything, but there are some instances when your engagement ring will not be covered under insurance plans. Below you will find some of these events so that you can be aware of a situation where your engagement ring will be unprotected.
- Wear, tear, and tarnishing (gradual deterioration)
- Damage from rodents, insects, and vermin
- Damage from nuclear hazards or military acts and war
Filing a Claim: How To
If your engagement ring is damaged, stolen, or lost, you should not delay contacting your insurance company. For a smooth claims filing process, do a bit of preparation before calling, including:
- (Re)Read your policy
While this may sound obvious, it is important that you be able to state clearly what you will be asking the insurance company to do for you.
- Gather your documentation
This includes the insurance policy number and any riders or floaters. You also need to supply the date the ring was lost or stolen, and, if there is one, a police report, including any reference numbers. Dated photos, and/or an appraisal can also be useful.
- Write a short statement explaining what happened
A written statement will help prevent emotions from taking over. Stay calm and stick to the facts. Remember that lying is fraud. If you don’t know the answer, say so. Also, write down what was discussed during the phone call to the insurance company, including the date, time, and agent’s name.
Once you get the go-ahead from your insurer to repair or replace the ring:
- Get the name of an approved jeweler or choose a jeweler to perform the repairs, or to shop for a new ring.
- If there is a deductible, you normally pay that amount directly to the jeweler, and the rest of the bill will be sent to the insurance company.
- Insure your replacement ring.
- For repairs that simply restore the ring, you do not need to make any changes to your policy at all!
In conclusion, the bottom line is, that considering engagement ring insurance is a prudent move. Yes, it is an additional investment as is getting an initial appraisal if you did not receive one at the moment of purchase, but it is worth it for your most beloved and sentimental piece of jewelry.
Hopefully, these tips will help you when selecting the best insurance company to cover your engagement ring!