Should you get engagement ring insurance? Yes!
Okay, now that we have that covered, here is what you need to know about insuring an engagement ring:
While certainly not as fun as planning the honeymoon, insuring an engagement ring is a logical and safe next step after popping the question. When it comes to insuring an engagement ring there are many things to consider: price of the ring, level of insurance, existing insurance coverage, and finding the best insurance.
1. Understand the Need to Get Insurance ASAP
An engagement ring is usually a significant life purchase, on par with buying a car or a house. Full protection for your engagement ring is generally not covered under homeowners or renters insurance.
Home and auto insurance are necessities. Protecting these assets is important for your financial and mental wellbeing. Insuring your engagement ring is just as important (and maybe even more-so because you can’t drop your house or car down the kitchen drain!) While irreplaceable from a sentimental point of view, having insurance on your engagement ring will allow you to replace what was lost or damaged.
2. Get Your Ring Appraised
An appraisal is a professional assessment of the value of the ring. Most insurance companies will require an appraisal for higher value pieces (for example, rings worth $5,000 or more) while an invoice or receipt suffices for less expensive items.
Many times, the place where you purchase the engagement ring can provide an appraisal. If the location that you bought your engagement ring does not provide an appraisal you can find a local appraiser who will typically cost between $50 and $150 per hour. The complexity and size of your engagement ring will determine the work required to appraise your ring.
A thorough appraisal will include:
- Laboratory work to inspect and gather facts about the piece
- Market research to compare like pieces
- Writing of the appraisal
A credit card receipt for a ring typically is not enough. The insurance company needs a detailed description of your jewelry, which is generated during an appraisal. Some jewelry vendors will provide a very detailed sales receipt that will suffice. Make sure to ask your engagement ring vendor about a detailed receipt or appraisal before going to another source.
3. Get Familiar with Engagement Ring Insurance Costs
The cost of ring insurance is directly correlated to the price of the engagement ring. As a general rule of thumb, ring insurance is typically $1 to $2 for about every $100 your ring is worth (or 1-2% of the total cost). Prices will fluctuate depending on where you live and the size of your deductible but generally you should not be paying more than 2% the value of the engagement ring.
4. Know The Right Questions To Ask
You’re almost ready to start shopping for jewelry insurance. Now is the time to get familiar with the policy you are about to buy. Here are the top questions to ask the insurance company when obtaining insurance.
- Is the ring insured to full cost or a fraction of it?
- Is the engagement ring covered if you lose it accidentally?
- Is the engagement ring covered if it is stolen?
- How will you need to prove the ring is lost if you make a claim?
- How will the company replace the ring?
- Will they require you to purchase a replacement through the original jeweler or are you free to choose?
- How will the quality and size of your diamond be documented?
- Are there any circumstances of loss that aren’t covered?
5. Shop Around For The Best Policy
Now that you understand the importance of insuring an engagement ring, have your ring appraised, and know the right questions to ask – you’re ready to start shopping for insurance.
Here are the top places to get insurance for your engagement ring:
Call Your Existing Insurance Provider
Contact your existing insurance provider for auto, home, or any other type of insurance. Ask them if they offer policies that would cover jewelry. There are often benefits of bundling your insurance, so you may be able to insure your engagement ring for a fraction of the cost. Be sure to get quotes from another source before finalizing with your current insurance provider! They may be able to lower the price if some competition is introduced.
Get an Online Quote
Here are some of our favorite US-based jewelry insurance providers that can offer a quick quote:
Engagement Ring Insurance FAQs
You should insure an engagement ring as soon as possible after purchase. Once the bride-to-be starts wearing the ring, you want to make sure that it is covered by insurance if anything were to happen to it.
Insurance rates will depend on where you live, but jewelry insurance will typically cost 1-2% of the value of the ring. For example, a $10,000 engagement ring would cost between $100-$200 per year to insure.
If you have the proper documentation including an appraisal, your engagement ring can be insured immediately after an insurance application has been completed, approved, and paid for.
Would you be devastated, both emotionally and financially, if something happened to your engagement ring? If you answered “yes”, the relatively small premium for jewelry insurance (1-2% of the cost) is likely worth the peace of mind.
Generally, whoever has the engagement ring in their possession first should acquire insurance. They will have the easiest access to the ring and the required documentation. They will be able to get insurance quickly and ensure peace of mind without having to wait to pop the question.
Jewelry insurance is typically not that expensive and can be easily bundled with other types of insurance. The low cost and high reward of peace of mind generally makes engagement ring insurance worth it.