Your engagement ring is an investment as much as it’s a symbol of your love and commitment. And like any large investment, you want to protect it as much as possible. Enter: jewelry insurance. Insuring your engagement ring will give you and your loved one the peace of mind you both deserve, especially amidst the hectic wedding planning! In this article, we’ll explore why engagement ring insurance is so important, and some tips and tricks to make sure yours is properly covered.
What is Engagement Ring Insurance?
Engagement ring insurance, or more commonly known as jewelry insurance, is very similar to home or car insurance. It’s a way for people to protect their expensive jewelry including necklaces, bracelets, earrings, wedding rings, and engagement rings
Insurance companies typically offer coverage to protect against theft, loss, or damage to the jewelry. Some people may opt for additional layers of protection where the insurance company will replace the lost or stolen ring. Some policies can also cover for the cost of cleaning and polishing.
Engagement ring/jewelry insurance is an important investment to consider having for anyone looking to protect the longevity of their ring, especially if the ring is expensive with quality materials and craftsmanship.
Ultimately, jewelry insurance is there to give you a peace of mind that you’ll be protected in the chance that something goes wrong.
How Does Engagement Ring Insurance Work?
Before you select an insurance policy, speak with jewelry insurance companies or a professional jeweller. The insurance coverage will depend on your insurance policy which may be custom-made to suit your needs.
Option One
Most insurance policies will have a specific dollar limit on your personal belongings (also referred to as blanket coverage limits). If you have a home, condo, or renters insurance policy, you will likely have a homeowners insurance policy. If that’s the case for you, typically no further action is needed on your end.
In most cases, your homeowners insurance policy will include coverage limits of your jewelry and engagement ring for up to a certain amount. This amount depends on your insurance provider. According to our research, the average coverage limit from most major banks appears to be $20,000.
Option Two
On the other hand, you’re free to pick up a separate jewelry insurance policy if:
a) Your homeowners insurance does not cover your engagement/wedding ring, or
b) Your homeowners insurance does not cover the full value of your engagement/wedding ring
For this option, different insurance companies will have different requirements for your ring’s appraised value. For most places, it depends on the cost of your engagement ring.
In some cases, a bill of sale or a receipt is enough to calculate the appraised value. But if the ring is expensive (upwards of $10,000 in most cases), you may need an official appraisal from a certified gemologist.
If you choose to go with option two and get a separate jewelry insurance policy, speak with an insurance company or an advisor to make sure you’re properly covered.
How Much Does Engagement Ring Insurance Cost?
Engagement ring insurance cost typically depends on which provider you choose to go with. Generally speaking, you can expect to pay 1-2% of your engagement ring’s appraisal value for jewelry coverage.
For example, an engagement ring appraised at $7,000 may be covered for an annual premium of $70 to $140.
If you’re looking to save money, it pays to shop around for different policies and compare options amongst different providers.
At the end of the day, it’s important to view jewelry insurance as an investment and a form of risk management. The right insurance policy will give you peace of mind if anything bad were to happen to your engagement ring.
Where Do You Get Engagement Ring Insurance?
Now that we understand what jewelry insurance is, how it works, and how much it costs, let’s dive into where we can get some insurance!
There are multiple ways to go about getting engagement ring insurance. Established and trustworthy retailers like James Allen and Clean Origin offer gorgeous engagement rings with insurance coverage options as a package deal during checkout.
Related: James Allen vs Clean Origin: Head-to-Head Comparison
On the other hand, many major banks will offer insurance policies for your engagement ring and other belongings (if it isn’t already included with your homeowners insurance policy).
And finally, there are insurance companies in the market that are specifically tailored to engagement rings and other pieces of jewelry. One company we hear a lot about is BriteCo (not sponsored, use at your own risk).
We recommend researching into your various options and compare policies to find the one suited for your specific needs.
Tips For Securing Engagement Ring Insurance
Find A Suitable Provider
Get Insurance ASAP
Find An Appraiser With Appropriate Credentials
Get An Appraisal
Find A Suitable Provider
Having a suitable provider is one that understands your needs and specific situation. Research and shop around before you commit.
Get Insurance ASAP
You never want to wait until disaster strikes to pick up insurance for your engagement ring. Act quick because no one can predict the future.
Find An Appraiser With Appropriate Credentials
Find an appraiser that has credentials recognized by the GIA, usually an expert with a graduate degree in gemology. This will ensure your appraisal is done accurately and fairly.
Get An Appraisal
Most insurance companies will ask for an appraisal done by a certified appraiser. The appraisal value will determine how much of a premium you’ll have to pay. So referring to our previous tip, it helps to have an accurate appraisal of your engagement ring.
Life Line Tip: Getting an appraisal done at the same time you purchase your engagement ring will ensure your premium is accurate and reflects the fair market value.
Frequently Asked Questions
A premium is the price you pay (every month, or every year) to ensure your engagement ring remains insured. A deductible is how much you have to pay out of pocket before the insurance company gets involved. Typically, a lower deductible means a higher premium, and vice versa.
Typically when this happens, you will need to get your new upgraded ring appraised. This may affect your premium depending on the appraised value of your upgraded ring.
Absolutely! In fact, it’s encouraged to insure multiple pieces of jewelry, especially if they’re expensive or carry sentimental value.
