Engagement Ring Insurance Rates
by Vanessa
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An engagement or wedding ring is often one of our most important and valued possessions so it makes sense to consider engagement ring insurance. Not only is it a valued possession but because it is worn all the time it is subject to potential damage, and because it isn’t a very large item it can be easier than you might think to lose. But you may wonder how much coverage for your ring will cost.
Engagement Ring Insurance Rates
Engagement ring insurance rates can vary from one state to another, one city to another and from one insurance company to another. The rates may also vary based on the specific coverage. But generally speaking you can expect to pay about 1-2% of the value of the ring, per year.
To get the best rates call around and compare rates from different companies, make sure you are comparing similar coverage as well. You may get a better rate if you use the same company you already use for your home and car insurance. If you have a homeowner’s or renter’s insurance policy you may already have some coverage for theft, but it won’t cover in all circumstances and it will likely only cover up to $500 or $1,000 depending on your policy.
Get A Jewelry Appraisal For Accurate Rates
You might receive a jewelry appraisal when you buy the diamond ring, but you should still get a jewelry appraisal from an independent jewelry appraiser. In some cases the jewelry store may use a slightly high jewelry appraisal to make you think you are getting a great deal on the ring by selling it under the appraised value. We all like to think we are getting a good deal and that our items are worth more than they are, but when it comes to insuring an engagement ring you need to know the true value of the jewelry.
If you buy a diamond ring insurance policy based on an inflated appraisal you will be paying higher engagement ring insurance rates than you need to. When it comes to making a claim you will likely only receive reimbursement on the true value of the ring, for example if you pay rates based on a $12,000 appraisal but the actual replacement cost for an identical ring is only $8,000 you will have paid higher insurance premiums than you needed to. To help get an accurate rate bring your sales receipt and an independent jewelry appraisal. Have your ring appraised every couple of years and give updated appraisals to your insurance agent as the value of your ring can change with the fluctuating market (for gold, silver, etc).
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What You Should Know When Buying Jewelry Insurance
Buying wedding ring insurance isn’t a difficult process, but there are some things you should know about the engagement ring insurance policy before you choose it. It is important to know exactly what your insurance premiums are covering; you don’t want to wait to find out when you submit a claim or you could be in for a disappointing experience.
Ask specific questions about what the jewelry insurance policy covers and be thorough. Here are some basic questions to ask:
- How will the claim be processed? Will you receive cash or need to get a replacement at a specified jeweler?
- Are both theft and loss covered?
- Does the policy cover damage? If so what kind of damage is covered? Anything excluded?
- Is there a deductible?
The key to finding the best engagement ring insurance rates is calling around to compare coverage and rates. Also make sure you use a reputable company in case you need to file a claim. It may be worth paying a little more for a company that has a better record for handling claims.
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