While it certainly isn’t the romantic part of the experience, buying ring insurance is something you should consider when you find that perfect ring. After all, not only is an engagement ring a significant purchase, it is also a sentimental one. This is a piece of jewelry you want to think about protecting, especially when you consider what it goes through on a daily basis. This type of protection becomes pretty valuable if you ever need to use it.
Why Should You Buy Engagement Ring Insurance?
Just as we commonly insure other expensive purchases, diamond ring insurance makes sense because an engagement or wedding ring is something that is worn every day; it is exposed to a lot of wear and tear, which can loosen the stone. But it is also something small enough that it can easily be lost when taken off briefly to wash your hands or play sports.
Granted, most people take precautions to take good care of their wedding ring, but unexpected things can happen and you may not want to take any chances. I’ve seen the most diligent, responsible people experience scares with their ring, making them better understand the value of wedding ring insurance.
The diamond itself is very strong, but the diamond can become loose in its setting from wear and tear. A diamond ring may also develop loose stones if it is accidentally knocked against a hard object, for example if you bump your ring against the counter top, a table or another surface. If you don’t realize stones are loose they may be dislodged and lost.
If you go swimming in a lake while wearing your ring your fingers can contract from the cool water and the ring can easily slip off without you realizing it until it is too late. And we’ve all seen the shows where the wedding ring fell into the sink or toilet. Unfortunately unexpected things like this really do happen all the time so it is important to have diamond ring insurance to protect this valuable piece of jewelry.
Homeowner’s Coverage Is Limited
Some people rely on their homeowner’s policy to insure a diamond ring instead of finding jewelry insurance to cover this valuable piece of jewelry. If you have homeowner’s or renter’s insurance you will have some coverage, but it may not cover loss or damage in all situations and the limits are much lower.
Generally under a homeowner’s policy all of your jewelry and certain other valuables have a combined limited coverage between $1,000 to $2,000. Thus it may behoove you to consider engagement ring insurance companies that specialize in jewelry insurance to properly cover your ring. Another option is to add rider insurance or a floater, to better cover specific pieces of jewelry.
The Cost To Insure An Engagement Ring
The cost of insuring an engagement ring will vary based on a few different factors. For starters premiums can vary from state to state and certain geographical areas that have a higher crime rate may charge a little more. Different insurance companies serving your area may charge different rates so it pays to do some comparison shopping. Of course the value of your ring will also be a factor; the Gemological Institute of America can provide information about diamond grading. But generally speaking engagement ring insurance rates will be quoted per $100 worth of coverage; it will usually be $1 or $2 per $100, or 1%-2% of the value of the ring.
You may be able to add the diamond ring insurance coverage to your homeowner’s policy under an extension called a rider or a floater; some call it ring rider insurance or jewelry rider insurance. But before you do this do some comparison shopping to make sure this option offers the best coverage for you.
You may be better off taking out a separate engagement ring insurance policy. You may be able to get a discount by going through the same company you use to insure your home and car. If not you may want to go to a company that specifically specializes in jewelry insurance like Chubb or Jeweler’s Mutual.
Finding The Best Engagement Ring Insurance Policy
Make sure you understand the coverage you will be getting before you buy engagement or wedding ring insurance. The same thing goes if you are considering wedding insurance. Purchasing a policy only to find out later it doesn’t cover what you thought it did can be very frustrating and it does happen, so make sure you understand the policy before you make a commitment.
Here are some questions you should ask when you compare jewelry insurance policies:
- Does the engagement ring insurance policy cover theft, loss and damage?
- If it covers damage are there exclusions, for example if your diamond ring was damaged wearing it while playing sports?
- If the policy covers ring repairs are you required to go to a specified jeweler?
- How will the engagement or wedding ring be replaced? Will you receive a check or do you need to find a replacement at a specified jeweler?
- How much will the policy cover?
- Is there a deductible?
- Will the ring be covered if it is damaged, lost or stolen while in the possession of someone else (at the jewelers for a cleaning)?
Engagement ring insurance policies can vary. Make sure you have the coverage you want and that you know the details of your policy so you aren’t unpleasantly surprised if you suddenly need to file a claim. Some policies will offer a cash settlement so you can replace the ring, but others only offer repair or replacement. Be sure you know what to expect in the event of an insurance settlement.
It is also important to understand how they will pay a cash settlement. If they pay based off of actual cash value (ACV) you should know that this value can change over time based on the changing market value of diamonds, gold and silver at the time of loss. For this reason it is good to have your ring appraised about every 5 years or even every 2 years if commodities like gold and silver are volatile.
The Forms You’ll Need For Diamond Ring Insurance
Whether you are buying engagement ring insurance or wedding ring insurance there are a few forms you will need. You will need to give your agent a copy of both the sales receipt and the jewelry appraisal. The jewelry appraisal should have a detailed description of the ring and a photo. If the appraisal doesn’t have a photo be sure to get your own clear picture of the ring and provide that to your agent as well. You may also need a copy of the diamond certificate too.
When shopping for engagement ring insurance be sure to compare rates and policy details from different companies to find the best fit and the best price for your needs.