Engagement Ring Insurance and Warranties – The Engagement Ring Buying Guide

The Quick And Dirty - You should buy insurance for your engagement ring. Insurance protects against theft, damage, and loss of the ring. Insurance is not the same as a warranty. A warranty, in contrast, is an extended service agreement offered by the jeweler to do repairs on damaged rings. 

What happens if your girlfriend misplaces her engagement ring? What if it is stolen? What happens if it gets damaged? 

If you are like us, you really don’t want anything to happen to that prized possession. She will be upset, the ring has sentimental value, and of course it’s expensive.

Ring insurance will provide you with financial security and peace of mind when you really need it, whether the engagement ring was left behind during a workout or swim, if it was stolen, or if an accident occured.

Many people think that ring insurance and warranties are the same thing, but this is not the case. We will cover what exactly ring insurance is, why you need it, how to get it, as well as how it differs from a ring warranty or ring guarantee. 

What exactly is ring insurance and why do you need it?

Engagement ring insurance is a method of risk management that contractually protects you from financial implications if your ring is lost, stolen, or damaged. The policies usually cover all jewelry pieces that are requested for coverage, resulting in a repair, replacement, or a cost reimbursement. 

Although the loss of a wedding or engagement ring is devastating, ensuring that it is adequately insured will help to mitigate the pain of the loss. While no two insurance plans are the same, knowing that you have placed some precautions and security against one of life’s most frightening possibilities is comforting. Insurance covers your ring against theft, loss, and damage. 

Theft

In an ideal world, you would not require insurance to protect yourself from things like theft. Sadly, jewelry is stolen on a regular basis, so it is really important to be covered in case this happens. If you obtain insurance coverage on a new ring and it is stolen, the policy can help you get another one.

Damage

You could fail to take off your wedding ring while doing some manual work with your hands. Or maybe your girlfriend forgets to take off her expensive engagement ring when she is working out at the gym and it gets damaged. If you had purchased an insurance policy, you do not need to worry because it’ll cover the expenses of repairs, allowing the ring to look as good as it did before. 

Loss

Imagine you are on holiday and you forget to pack your ring, which you left on the hotel sink by mistake. You return from a day out in the sun and the ring is no longer there. Total bummer. The ring can be replaced if you had it covered under an insurance policy. So not to worry.

So, what is a ring warranty?

A warranty is a form of extended service agreement offered by your jeweler. A ring warranty or a ring guarantee protects slight wear and tear which occurs when you have owned a piece of jewelry like a ring for some period of time. 

Small cracks, prong repair, and preventative repairs such as diamond/gemstone tightening, washing, or buffing out light scratches caused by wearing your ring are usually covered by warranties. Bear in mind that most ring warranties do not cover your ring if it is broken, lost, or stolen. 

The majority of people buy warranties under the mistaken belief that their jewelry will be entirely protected under these circumstances, but this is seldom the case. 

This isn’t to suggest that having a warranty isn’t beneficial. A jeweler’s guarantee is a great thing to have since it protects you from just about all complications that arise after the sale due to manufacturing defects. However, if you want complete peace of mind and to cover your jewelry from damage, theft, or loss at any time, you should consider purchasing ring insurance.

Where and How to get your ring insurance

When it comes to insuring a wedding ring or engagement ring, there are a few key choices to evaluate. Basically, these are your two options: to get your insurance from a jewelry-specific policy or to have the ring covered by your home insurance. If you choose the latter, keep in mind that if you move to a different home, you’ll need to modify the policy. Ensure that you’re protected for damage and loss, not just theft, when checking for insurance options. Some top jewelry insurance companies in the United States that will provide a fast quote include Liberty Mutual, Geico, Jewelers Mutual, and Progressive. 

The first thing you need to do is decide whether you want a jewelry-specific policy or to have the ring covered in your home insurance. 

The next step is to have your ring appraised. An appraisal is an expert evaluation of a ring’s worth. For higher-value rings, many insurance providers may demand an assessment, while for lower-value rings, a receipt or invoice from your purchase will be sufficient. Also, the company from where you bought the engagement ring will be able to provide you with an appraisal. The amount of work needed to appraise your ring is determined by its size and complexity. 

If the center stone on the ring is half a carat or greater, your jeweler will most likely have a grading report or a diamond certificate from a third-party gemological lab, such as the Gemological Institute of America (GIA). Although not the same as an appraisal, it is an assessment on quality that lists all the metrics the appraiser would use to provide the most precise value calculation. If your diamond stone ever gets stolen, this precise information can also be used to trace it.

Make sure that the appraiser is qualified and that they do not give you an inflated value for your ring. Once you get how much the ring is worth, you can then draw up the terms of the insurance and set up a contract with your insurance provider. Getting a diamond engagement ring was a wise purchase. Since the value of such a ring will definitely increase over time since you bought it, it’s a good idea to get it appraised every two to three years for the sake of insurance. Many credible appraisers will keep a copy of the original appraisal and draw from it rather than starting over. Carry a copy of your initial assessment just to be safe in case they don’t hold records.

The average cost of ring insurance

Insurance policies are typically just 1-2 percent of the ring’s price value on average each year, so having the entire value of the ring insured is worthwhile. If something goes wrong, you’ll be able to replace it with another ring of equivalent value without the need to pay for the cost out of your pocket.

Here is one example: if you bought a ring for $5,000, you should expect to pay around $50 to $100 for insurance per year. That comes down to less than $10 a month.

Your insurance premium will be reduced if you have a vault or a safe to store the engagement ring in. It will be on the higher end if you have ever had a ring lost or stolen before. The cost of insurance coverage can also differ significantly depending on factors such as whether the insurance policy has a deductible or the location in which you live. Even if the price is just a little more than expected, it is still a fine decision to safeguard your investment, especially if the ring costs five figures or more.

You and your fiancée should insure the ring right after you buy it and when she starts wearing the ring, just as you would a car before driving it off the car lot. You may not think anything will happen to your priceless and cherished ring, but the faster you get it insured, the better.As soon as you buy the ring, you or your partner should start looking for ring insurance companies.

Frequently Asked Questions

What is engagement ring insurance?

Engagement ring insurance is insurance that people buy to insure a ring from loss, theft, or general damage. Buying ring insurance enables you to propose with confidence knowing that if something happens to the ring, your insurance company will be there to financially back you.

What is an engagement ring warranty?

A ring warranty covers extended service and support for the ring in the chance that it needs maintained, work, or adjustments after you purchase it. A common use cases is to have the prongs (the metal that holds the diamond or gemstone to the ring) replaced or upgraded if bent.

What is the difference between insurance and a warranty?

Both insurance and warranty are forms of protection to help you buy and display your ring with confidence. They do cover different use-cases of damage. The insurance policy focuses on loss, theft, and damage and the warranty supports necessary repairs.

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