From picking out a ring, to planning the perfect proposal, engagement ring insurance is probably the last thing on your mind. After saying yes, chances are someone will be sporting a shiny new addition on their hand and it’s important to make sure this special token is protected. Just as it sounds, engagement ring insurance is a policy for your ring in the event it’s lost, stolen, or damaged, the policy helps cover the cost to repair or replace it.
What Is Engagement Ring Insurance?
No matter how careful you are with your engagement ring, accidents and incidents out of your control can and do happen. What happens if you lose your ring? If someone steals it? If it gets damaged? While nothing can replace the sentimental value of your ring, engagement ring insurance is a contractual means of risk management to protect you from the financial repercussions in the event of loss, theft or damage.
To protect your ring, you can purchase an extension (also called a “rider”) for your renters or homeowners policy which will cover items inside your home up to a certain dollar value. For expensive or sentimental items like engagement rings, another option is to insure your ring through a company that specializes in jewelry insurance, which will offer more coverage than a standard homeowners policy.
An engagement ring insurance rate is determined by multiple factors (like an auto or home policy) including the value of your ring, where you live (and theft rates in the area) and whether or not your policy has a deductible. Insurance typically costs 1-3% of the value of the item being insured, so on average, you can anticipate paying $1 to $3 for about every $100 your ring is worth. For example, for a $10,00 ring, you could anticipate a premium of $100 to $300 a year.
How to Insure Your Engagement and Wedding Rings
The first step is to get an appraisal to determine what your rings are worth. This accounts for key elements of value including: carat, cut, color, clarity, types of metal, shape and any distinctive markings, model numbers, or stamps. If your jeweler provided you with a grading report from an independent gemological laboratory like the Gemological Institute of America (GIA), while not an appraisal, it lists all of the measurements your appraiser will need to make the most accurate determination of value.
Next is to choose a coverage provider. We recommend working with a company that specializes in jewelry insurance especially if your rings are of substantial monetary and/or sentimental value. While you can add onto an existing homeowners policy, in many cases coverage is limited by situations, requirements to use jewelry replacement companies, and coverage value limits. Make sure to ask your policy provider important questions like:
- Can you choose who repairs your ring or where to purchase a new one?
- Are there any circumstances that aren’t covered?
- Will you still be insured if you travel out of the country?
- Are you covered for damage or just loss and theft?
- What types of repairs contribute to the deductible?
If you would be devastated by the sentimental loss or unable to cover the cost to replace it, make sure your engagement and wedding ring is covered by insurance. While your coverage won’t be able to replace the sentimental value, it can give you peace of mind when wearing your rings every day. Contact us with any questions at 303-385-8449 or click here to schedule an appointment.