Like any major expenditure, your engagement ring needs to be insured. For pennies on the dollar, an engagement ring insurance policy gives you peace of mind in case the unexpected loss, theft, or damage of your ring happens. And if you talk to couples who have been married a while, you’ll be surprised to know that many of them have had to replace a ring at least once.
Reasons to Get Ring Insurance
Unfortunately, the list of things that could potentially happen to your shiny new engagement ring over the course of its life is long. It could be stolen. You could catch it on the car door and pull the stone out of the setting. It could slip off into the garbage disposal, dumpster, or ocean. If it falls off at the beach or in a grassy field, you may never find it. A small child could hide or lose it when you take it off to sleep or shower. Or you might just misplace it. With all those possibilities and more, why wouldn’t you insure such a valuable piece of jewelry?
Cost of Engagement Ring Insurance
The average ring insurance premium is 1.25% to 1.75% of the appraised value of the ring, per year. You’ll need to pay yearly on ring insurance, so make sure to factor it into your budget. Your premiums will affect your budget, but not nearly as much as it would to buy a new diamond ring entirely from your own pocket.
Types of Ring Insurance Policies
It pays to get ring insurance, but all the same you hope you never have to use it.
Some people insure their rings with a specialty jewelry insurer, while others purchase their ring insurance as a “rider” (sometimes called a “personal articles policy”) to their renter’s or homeowner’s insurance policies. The most common type of policy is an “actual value” policy, which factors in depreciation in value of your ring over time. “Replacement value” policies don’t account for depreciation, instead paying for an identical new replacement ring in the event of loss or theft.
After you purchase your ring insurance policy, keep all documentation in a safe location. The original purchase receipt for the ring, the appraisal report, and color photos of the ring will help you to get your replacement should you ever need to use your insurance policy.
Questions to Ask your Ring Insurer
When it comes to any type of insurance, you should never assume you know what is covered nor should you skip any of the fine print before signing. Some of the things you should ask:
• Is the ring covered only if it’s stolen? What if I just lose it? What if it gets damaged?
• How will you replace the ring? Will I get a check for the value or do I have to purchase a replacement through a certain jeweler?
• How do you repair a damaged ring?
• Who do you accept appraisals from?
• What if it’s a vintage or heirloom piece with sentimental value?
• Is the ring insured to the purchase price? Does it factor in depreciation over time?
• Is there a deductible? If so, how much is it? How will paying a higher deductible lower my premiums, or vice versa?
• How do I make a claim?
• How do I prove loss or theft if I need to make a claim?
• If I file a claim, how will that affect my future premiums?
• What if something happens to my ring while traveling abroad?
• What circumstances aren’t covered that I need to be aware of?
• (If purchasing as a homeowner’s rider:) Does this policy cover damage or loss outside the home?
Ring Insurance Appraisals
To get your ring insured, you’ll need to have it appraised by an approved agency. A diamond certificate, also called a gem lab report, describes and grades the gem but does not count as a ring appraisal.
The jeweler who sells you your ring can usually do appraisals, but you may be better off getting an unbiased appraisal from an independent jewelry appraiser. The appraisal should make note of the color, clarity, cut, carat, setting, and market value. You should have your ring re-appraised every few years to reflect changes in value.
Protecting Your Engagement Ring
It pays to get ring insurance, but all the same you hope you never have to use it. To protect your wedding and engagement ring against loss, theft, and damage:
• Clean rings weekly using a specialized jewelry cleaner
• Inspect regularly for loose settings or other problems
• Keep rings in a locked safe whenever you take them off
• Wear a cheap cubic zirconium ring when you go on vacation in place of your real engagement ring
• Get your ring resized if it doesn’t fit snugly (when you first receive it, if you lose weight, etc)
• Don’t wear your rings swimming or during water sports
• Wear gloves or remove rings when cleaning or working with harsh chemicals
Your wedding and engagement rings are valuable, not just for the significant purchase price but also for the sentimental value. Of course you want to exercise all the caution you can to avoid every making a claim, but purchasing a ring insurance policy will protect your investment and help you replace the ring if the unexpected occurs.
♥ Jenny Evans
Exclusively for WeddingLDS.com
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