When Things Go Wrong: Engagement Ring Insurance
You don’t plan for your house to burn in a fire or get lost in a flood, but that’s why you have homeowner’s insurance.
Believe it or not, you should probably look at getting engagement ring insurance, too, because you never plan for anything to happen to the ring.
Honestly, getting insurance for your engagement ring is a positive thing to do. Should anything happen, you’ll appreciate that you have it so you can be prepared for the unexpected.
What Is Engagement Ring Insurance?
Engagement ring insurance is simply an addition to your existing coverage. By adding this extension to the coverage, your ring is covered should you lose it or damage it. If you add an extension to your existing policy, you may be limited to a pre-determined amount.
Engagement rings are typically expensive, and so you may want to explore the optional additions you can include because there are other choices available to you.
To ensure guaranteed coverage of more expensive items like an engagement ring, you’re going to want to get what is called scheduled personal property coverage. This type of coverage is an insurance add-on, but it covers a specific item up to a higher dollar amount.
Alternatively, you could also opt to go with a jewelry insurance company. This type of company specializes in insuring pieces like your engagement ring and may even offer better coverage than the add-ons available through your homeowner coverage.
Also, if something were to happen to your ring and you filed a claim against your homeowner’s insurance because that’s where you chose to have your coverage, your household policy premium might suffer. It would be viewed as a homeowner’s claim and may cause difficulty when it is time to renew.
Why Do You Need Engagement Ring Insurance?
If you have any jewelry like engagement rings that is sentimental to you, you’re going to want to get an insurance policy.
The amount that was paid for your engagement ring is inconsequential because the insurance policy is your way of proclaiming just how valuable that piece of jewelry is to you. The amount it is insured for, however, is dependent on the policy you end up choosing for coverage.
At the very least, if your ring needed to be replaced, you may be able to do a complete or partial replacement due to the insurance coverage that it carries should anything ever happen. You’ll need to decide what you prefer.
Something else to think about when you’re deciding whether or not to pursue a dedicated jewelry insurance policy or to add it to your homeowner’s policy is the value placed on your ring.
The value of jewelry fluctuates and your homeowner’s policy likely won’t reflect that. But a policy from a jewelry insurance agency will stan in line with market value.
What Do You Need to Consider Before Selecting a Policy?
When you’re comparing policies, you’ll want to see whether or not the ring is going to be covered if it is lost, stolen, or both.
Different circumstances may only be covered under certain policies.
You’ll want to see which one offers the best options.
You’ll also want to get an understanding as to how the insurance company plans to replace your ring. They may send you a check or they may require a replacement purchase only through a jeweler that they approve.
You’ll need to be sure if you’re okay with whatever stipulations the policy has in place.
If you’re interested in insuring a vintage piece of jewelry, there may also be special exceptions to the piece.
As an example, they may only offer coverage to the stones based on size or quality of the diamond or other surrounding stones. They may or may not offer an adequate replacement plan if something were to happen to a piece like that.
Don’t forget to verify just how much the insurance is going to cover. As an example, will your ring be insured for the full appraised value? It might not be insured for that high of an amount and may instead be insured for only a portion of the amount.
Insurance companies also require some sort of proof if your ring were to ever go missing. They’re going to want something from you, but you’ll need to find out what that is. For example, if the ring were stolen, they may require a police report indicating that you filed proof of having had it taken from you.
All insurance polices have loopholes in some way or another, so you’ll want to ask questions about that, too, regarding whether or not there is any circumstance where your ring might not be covered. That could mean your ring flew off of your ring as you were holding your hand out of the window of a moving vehicle and subsequently got run over by a semi, thereby permanently damaging the ring.
As outlandish as the question might be, you’re going to want to ask every question you can think of as you’re comparing policies to make sure you make an educated decision.
How Does Engagement Ring Insurance Work?
There are going to be a few documents that will be required of you, namely receipts and appraisal documents. You can get your ring appraised by a jeweler or a by an otherwise certified gemologist for a reasonable fee.
If the ring was insured prior to getting married, you’ll also need to make sure all documentation gets updated after the fact. If you forget to update the policy after marriage, it is possible that the ring may not be covered depending on surrounding circumstances.
The bottom line for you is when in doubt, reach out to a reputable jeweler and ask questions. The best resource for you is going to be someone who is a jeweler by trade as opposed to part of a chain of jewelry stores.
Another bonus to having insurance for your engagement ring is that it is easily expandable to include other jewelry as well. You can add your wedding rings, bracelets, earrings, and even loose gems that don’t have a setting just yet. They can all be covered.
Once you have all necessary documentation, you’ll be quoted a price for your insurance. Costs vary by insurance company, but according to The Knot, you can expect that your ring may be around two dollars for every one hundred to replace. In their example, if you have a ring that originally cost around nine thousand dollars, you can expect to pay up to one hundred eighty dollars per month to keep it insured.
To minimize costs, The Knot also recommends keeping the jewelry in a safe when not in use along with the paperwork. If you can show proof of these proactive measures, you may be able to get your policy premiums to go down just a bit.
A Final Few Words
The biggest thing to remember when you’re looking at different policies is to always read everything, including the fine print.
Policies should cover every conceivable situation that could result in loss or damage to your ring. If there are incidences that would not cover your ring, then you need to steer clear of that policy.
Something else to remember is that you won’t be able to get a true insurance quote until you have your ring physically available.
It may be possible to get estimates based upon how a ring is listed elsewhere like on a jeweler’s website. But without actually seeing the ring, the quote will not be accurate.
Do yourself a favor once you get your ring. Get engagement ring insurance if for nothing else, at least for your peace of mind.