Do I Need to Get Insurance on an Engagement Ring?

From the moment you say "yes," chances are you'll be rocking a shiny new addition on your left-hand ring finger—an accessory that needs to be protected.

Though engagement ring insurance may be the last thing on your mind during such a happy time, with great rings come great responsibilities, and you want to be covered if anything unexpected happens to the beloved rock. Whether you've left your engagement ring accidentally behind on the beach, lost a stone at the gym, or had your ring stolen, engagement ring insurance can offer financial protection and peace of mind when you need it most.

By definition, engagement ring insurance is a contractual means of risk management to protect you from financial repercussions in the event of physical loss, theft, or damage. The policies typically extend to all jewelry items submitted to the coverage scope and result in either replacement, repair, or cost reimbursement. Moreover, while anything that happens to your engagement or wedding ring is heartbreaking, knowing it's properly insured can help to soften the blow.

Here, we've compiled a comprehensive guide to engagement ring insurance and weigh in on what it takes to make sure you'll be able to enjoy your ring for years to come—no matter what life throws at your left hand. Continue for everything you need to know about getting your wedding rings insured.

How Much Should You Spend on an Engagement Ring?

Do You Really Need Engagement Ring Insurance?

Ultimately, it's up to you to decide if your accessory is valuable enough to require financial protection, but most experts agree any proposal piece is a good candidate. "If you’d be upset if your ring was ever lost, broken, or stolen, then it’s valuable enough to insure," says Krowiorz.

"If you think you would be devastated about the sentimental loss, afraid to wear other uninsured jewelry, or unable to cover the cost to replace the item, it would be wise to make sure your engagement or wedding ring is covered by insurance."

Unsure when to get your ring insured? Your soon-to-be fiancé or fiancée can insure the ring as soon as it's purchased and in their possession—much like you would insure a car prior to driving it off the lot.

You might not initially be thinking of anything happening to your precious and sentimental token, but the sooner it's insured, the sooner you'll be protected. The timeline can vary depending on the individual case, but, in general, coverage can be provided right away (after the application, appraisal, and sales receipts are submitted) or may take a few business days if subject to underwriting review.

There might be more to think about than just how to insure engagement rings. As soon-to-be newlyweds, you may want to consider ramping up your insurance coverage to account for expensive or hard-to-replace wedding gifts.

The Cost of Engagement Ring Insurance

Rate is determined by multiple rating variables and factors (like an auto or home policy) to provide a customized rate based on the individual risk characteristics.

These variables and factors include the value of your ring, where you live (and theft rates in the area), and whether or not your policy has a deductible. Premiums will always be higher for policies with lower or no deductibles.

Insurance typically costs one to three percent of the value of the item being insured, but can be outside this range based on individual risk characteristics.

So, on average, you can anticipate paying $1 to $3 for about every $100 your ring is worth. In theory, then, you can anticipate a premium of $100 to $300 a year for a $10,000 bauble.

How to Insure Your Engagement Ring

What happens if you lose your ring? If someone steals it? If it gets damaged? These are all the reasons why you should consider engagement ring insurance. Ahead, we provide a few tips to help you get the best protection and coverage.

Get your engagement ring appraised

You can't protect the value of your ring if you don't know its worth. An appraisal will account for all the key elements of value including carat weight, cut, color, clarity, and quantity of diamonds; types of metal and weight; shape and carat weight of other stones; and any distinctive markings, model numbers, or stamps.

Current retail prices in the regional market, origin of the materials used, and craftsmanship of the piece are also taken into account. Most insurance companies will require an appraisal for higher-value pieces (for example, rings worth $5,000 or more), while an invoice or receipt may be sufficient for less expensive items.

Having jewelry appraised at the time of purchase assures current market prices are reflected and distinct characteristics are accounted for.

Ensure you have a diamond certificate or grading report

If your center stone is around half a carat or larger, your jeweler will often provide a diamond certificate or grading report from an independent gemological laboratory like the Gemological Institute of America (GIA), the organization that founded the "4Cs" used to evaluate diamonds: color, cut, clarity, and carat weight. This assessment of quality—while not an appraisal—lists all of the measurements your appraiser will need to make the most accurate determination of value. (This detailed information can also help track down your specific diamond if it's ever stolen).

Research insurance companies and get a quote

Being adequately informed is of the utmost importance in deciding which insurance option or provider is best suited to your needs. Make sure to ask a potential policy provider important questions like:

·         Can you choose who repairs your ring?

·         If you're insured for replacement (instead of a cash payout), where can you purchase a new ring?

·         What happens if a suitable replacement cannot be found?

·         How will you need to prove the ring vanished if you make a claim?

·         Are there any circumstances that aren't covered?

·         Will you continue to be insured when out of the country?

·         Are you covered for damage or just loss and theft?

·         Will the policy adjust according to inflation?

·         What types of repairs contribute to the deductible?

Whenever you insure something valuable, the most important thing you can do is understand your policy thoroughly. As you get answers to these questions, you'll have a better sense of which provider can offer the best ring insurance.

Compare coverage pricing and options

Once you've done some research, your next step is to compare the options you've discovered. In most cases, you may be assessing the differences in coverage and pricing between two options: homeowner's or renter's insurance, or insurance through an independent company.

If you have homeowner's or renter's insurance, you can purchase an extension (also called a rider) that covers your engagement ring specifically. But, there is something to keep in mind: A jewelry claim filed against your homeowner’s policy could affect your entire policy.

So, if your engagement ring was ever stolen or lost, your premium could go up or your eligibility for your entire homeowner's policy could be affected at renewal.

If you don't have homeowner's or renter's insurance, you can take out a policy through an independent company that specializes in jewelry insurance like Jewelers Mutual. We encourage you to trust your home to your homeowner's or renter’s insurance specialists and your jewelry to the jewelry insurance specialists. Most homeowner's insurance policies do cover jewelry to some extent, but, in many cases, coverage is limited by situations covered, requirements to use jewelry replacement companies, and coverage value limits.

Be sure to have all the facts and information when evaluating insurance options, even if you're just choosing to add a rider to the current policy. Call your homeowner's or renter's insurance and ask for details—never just assume you’re covered.

Request a sample policy

Asking for a sample policy will allow you to see what's provided with your insurance coverage—and what isn't. This is extremely helpful when comparing policies, especially if you're stuck between two companies. Your sample policy may vary from your actual policy based on your location and the underwriting company issuing your insurance.

Ensure your appraiser has the right credentials

Find a reputable appraiser with sparkling reviews, preferably one who also holds a graduate degree in gemmology and is a member of a national appraisal society. (The GIA recognizes these associations.)

And make sure that the appraisal value is accurate and not inflated. Sure, you might be thrilled when the sparkler that cost your partner $2,000 appraises for double, but you could end up losing money in the long run. You'll pay a higher monthly premium for a ring that appraises for $4,000.

How Does Jewelry Insurance Work?

Imagine your favorite piece of jewelry disappeared or got destroyed beyond repair. How would you be feeling?

·         Heartbroken for sentimental reasons?

·         Crushed because there was no feasible way you could afford the cost of a new one or repair it?

·         Hesitant to wear or purchase fine jewelry again?

If you answered “yes” to some or all of these questions, jewelry insurance may be worth purchasing.

Jewelry insurance covers your jewelry when it has been damaged or stolen. Some policies also cover lost jewelry. Following is a collection of choices to assist you in your search for the right jewelry insurance for you.

Jewelry Insurance through Your Home Insurance

If you have homeowners, renters or condo insurance, those policies likely include some amount of coverage for jewelry - and more coverage may be available if you need it. Here’s how it works.

Personal property protection on a regular policy

Jewelry is covered by traditional homeowners, renters and condo insurance, and falls under the personal property section of your policy (just like the shirts in your closet or the couch in your living room).

These policies usually protect your stuff from theft and fire. But they typically won’t cover issues that aren’t included on the policy - for example, manufacturer defects or dropping your wedding band down a heating vent. And they typically won’t cover damage caused by floods or earthquakes, either.

There are some disadvantages to having your jewelry covered under your homeowners or renters’ policy.

·         For one, there may be a limit on what the insurer will reimburse you for stolen jewelry, say $1,500. So if you own jewelry that exceeds that value, your coverage may not be adequate.

·         Second, the insurance company will deduct your deductible from any claim payout. So if someone swipes your $1,500 bracelet, and you have a $1,000 homeowners insurance deductible, you will receive just $500 from your insurance company.

·         Lastly, a claim on a stolen or damaged piece of jewelry can result in increased policy premiums.

Consider this if: You have very little jewelry or the pieces you have aren’t valued above your policy’s jewelry sublimit.

If your current policy’s jewelry limit is insufficient to protect what you have, you may be able to purchase one of the below types of additional coverage from your homeowner insurer.

Blanket coverage

Blanket coverage increases the cap on what your policy will pay for a certain kind of valuable, like jewelry.

For instance, while the standard policy could cover just $1,500 for stolen jewelry, if you layer in blanket coverage, the coverage limit might increase to $5,000 or higher. Per account limits may also exist.

Depending on the insurer, blanket coverage might also broaden what your policy will pay for, such as situations when jewelry is lost or misplaced. Some companies give blanket coverage, with no deductible.

Consider this if: You have a jewelry collection, but none of the pieces are particularly valuable.

Scheduled personal property coverage

When you “schedule” an item of jewelry, you are purchasing specific coverage for that item. You may have, for example, nothing of value in the way of jewelry but your $5,000 engagement ring. Rather than purchasing blanket coverage for a collection you don’t own, you only need to insure the ring.

Unlike with a standard homeowner or renters policy, coverage for scheduled personal property may apply if you, for example, lose a bracelet while traveling or drop a ring down a drain. There’s often no deductible.

You might need to provide an appraisal (a professional estimate of the item’s value) to purchase this coverage.

Consider this if: You have one or more individual pieces that are worth more than your homeowner’s policy’s cap for jewelry.

Jewelry insurance from a specialty company

The companies that specialize in insuring jewelry typically provide broader coverage than your homeowners’ (or renters’) insurer.

For instance, these could include preventive maintenance like stone tightening or a clasp change. They have also paid out for jewelry lost in a flood or an earthquake.

Many stand-alone jewelry policies cover your items on an “all risks” basis, which means they pay for damage from just about everything except the things that are specifically excluded. Here are a few events that jewelry insurance is often unlikely to cover:

·         Defects in the manufacturer.

·         War or nuclear perils.

·         Wear and tear.

·         Damage caused by vermin such as rodents.

·         Loss or damage caused by any deliberate act.

Purchasing a jewelry policy from a specialty company means if you have a claim, your homeowners or renters insurance won’t become more expensive.

A number of these policies are “repair and replace” policies which reimburse your jeweler after a claim. That can be a good option to have if you know you want to replace a lost piece, but repair-and-replace policies offer less flexibility than a cash payout.

Get this if: You don’t want your home insurance rates to be affected by jewelry claims and you intend to buy subsequent pieces if lost or stolen.

What is the cost of jewelry insurance?

Every stand-alone jewelry insurance policy (policies sold separately from homeowners’ insurance) I researched charged 1% to 2% of the value of each item. There are several factors that can impact the cost of a policy are:

·         Your location.

·         The amount of property you are insuring, as well as the value of individual pieces.

·         The deductible.

If the policy will reimburse you for actual value (the cost of the lost item, minus depreciation) or replacement value (the cost to replace that item today). Third alternative In very few cases there can be a third way. Some companies allow you to insure heirloom pieces or other hard-to-replace jewelry on an agreed value basis, under which the insurer pays the amount specified in the policy.

You might get a discount on jewelry insurance by:

·         Owning a home security system.

·         Keeping the jewelry out of sight in a home safe or safe deposit box at a bank.

·         Register the jewelry with a third party, Gemprint or Forevermark.

There are also plenty of companies that will give you a quote for jewelry insurance online or over the phone. Once you have a quote, your policy can start whenever you make a payment. One option is that you produce an appraisal or a detailed receipt in order to get coverage.

How does jewelry insurance work?

The way that jewelry insurance works is fundamentally like other kinds of insurance.

You pay the premiums, and the insurance company pays you (minus your deductible) if something happens to your jewelry, like if it gets damaged or stolen. But what that looks like depends a lot on the specific terms of your policy.

To be sure you’re not in for any unpleasant surprises, it is important to know what is covered, and how your insurer will pay you.

While many insurance companies will say they will pay for “repair or replacement” if a piece of jewelry is damaged or stolen, make sure to find out exactly how those payments will be made. Ask the company:

·         There’s a load of jewelry insurance questions on your cover policy and it’s important to know the answer to them:– Will the policy pay if I’ve damaged or lost my jewellery by mistake?

·         If I give or receive jewelry as a gift, will the policy cover it?

·         Is my coverage different when I travel?

·         Will the insurer pay me the cash value of an item that I lost, or will it pay a jeweler to replace it?

·         May I select my own jeweler for repairs, or replacement?

·         If I have a custom piece of jewelry, will my policy pay for a custom replacement, or do I have to settle for something “like-kind”?

·         Is it worth it to have jewelry insurance?

Final Thoughts

In the end, it’s a matter of how much is your jewelry worth to you.

If you’ve spent a good deal of money on your jewelry, and it’s the type of jewelry that has strong significance, then buying insurance to cover your investment would be a smart thing to do.

But if you wouldn’t feel compelled to replace your jewelry if it were lost or stolen, insurance may not be worthwhile even if the item holds great value.

You may also want to take into account how frequently you wear your jewelry. A copy of a painting that you keep in a closet is far less likely to be stolen or destroyed than a sculpture you display in your living room. And an engagement ring that you wear every day on your finger is more likely to be misplaced or damaged than a diamond necklace that resides in a bank safe for years on end.