Engagement Ring Insurance: Do You Need it?

February 21st, 2020 / Lindsay Kazan

The short answer is absolutely! After all, engagement rings are special. It’s symbolic of the love and commitment you share with your spouse-to-be, which makes it priceless from an emotional perspective.

This particular piece of fine jewelry is also often a big financial investment for many couples, and you want to make sure that investment is properly protected. While it would be devastating to lose your engagement ring or for something to happen that damages it, what would be an even bigger loss is if you budget for an engagement ring, spend a good amount of money, and were then forced to replace it or pay for repairs out-of-pocket.

While talk of investment and risk in relation to your marriage and engagement ring is a little left of romantic, it’s a necessary discussion that you should sit down as a couple and engage in to decide on engagement ring financing and your best options. However, we know talking about things like insurance can be confusing, so keep reading as we try to provide some clarity on the topic of insuring an engagement ring!

How Engagement Ring Insurance Works

In most cases, you’ll be required to have your ring appraised, usually by a certified gemologist. This is especially true for high-dollar, valuable items like engagement rings and wedding bands. We recommend an initial appraisal of your engagement ring and then periodically having it reappraised, as values of metals and gemstones tend to rise with inflation.

However, there is a small cost to having your engagement ring appraised, so keep that in mind and plan ahead. If you choose to have it appraised on a regular basis, you should make sure the appraiser is experienced and try to stick with the same person each time. Building a trusting relationship with your fine jewelry appraiser is key.. A good rapport could even possibly lower your repeat appraisal costs, because they can often work off your original appraisal rather than re-inventing the wheel every time.

Keep in mind that even if your chosen insurer doesn’t require an appraisal when you open the policy, your insurance agent will often require one if you ever have to make a personal property claim. At the least, you will have to give them a detailed receipt, so it really doesn’t hurt to just go ahead and have the ring appraised. You’ll also need to provide your purchase receipt to your insurer, whether you insure through a homeowner’s policy or a jewelry-specific insurance company.

Questions to Ask Your Jewelry Insurer

You should always ask plenty of questions before choosing an engagement ring policy to make sure all of your needs are met and the personal articles policy is clearly communicated and completely transparent. Rules and coverage can vary quite a bit from company to company, so don’t assume because one insurance provider offers one version, they are all the same. They definitely are not! Some of the questions you might ask a potential insurance provider include:

• Do they cover for loss and theft? Or just one or the other?
• Do they cut a check to cover the cost to replace the ring? Or require you to go through their preferred jeweler?
• Do they fully insure the value of your ring? Or only part of it?
• How do they assess value? Based on the original purchase price, or on current market value?
• What’s their process to file a claim and prove loss?
• What specific circumstances do they not cover?
• What if your ring is very unique, one-of-a-kind, or vintage? How does coverage work then?
• Is your ring still insured if you’re out of the country? Where does your personal property coverage apply?
• What happens if you can’t find a replacement ring?
• Can you choose the company you want for ring repairs?

These are all very important questions to ask before purchasing a policy. It would be a shame to buy a policy thinking your engagement ring was fully covered, only to find out later that it’s not. Do your due diligence and ask the pertinent questions to ensure your valuable items are protected.

How to Get Engagement Ring Insurance

There are a couple different ways you can seek to insure your engagement ring. One of the most common options is to use your household insurance policy and add your engagement ring to it as a form of personal property.

You will likely have some kind of limit of liability, which is the max amount an insurance company is willing to offer in coverage for your ring. If the max coverage you can get is only $1500 and your ring was $2000, you are out that final $500, unless you ask for a rider that is jewelry specific. This can cover your ring’s full replacement value and protect it against most loss scenarios.

When you file a claim with a homeowner’s insurance policy, they cut you a check and it’s up to you to go out and buy your new engagement ring. The downside is that a claim against your engagement ring could affect your entire policy and drive your premiums up or affect your renewal eligibility.

Another downside is that you rarely re-evaluate when you insure through a homeowner’s policy, which means that your insured value remains the same even if market value goes up.

The other option many couples look at is going with a jewelry-focused insurance company. When you file a claim with a jewelry insurer, you get the benefit of a professional that specializes in jewelry working with your jeweler to help you replace your engagement ring, ensuring you get the same quality and style as the original. It also means that if you file a claim, your homeowners insurance policy is not affected because they are covered separately.

The other benefit to a specialized jewelry insurer is they will usually have some kind of value adjustment clause that you can opt-in for, that will help prevent you from being underinsured as market values on your engagement ring rises.

It’s not required, and it can increase your premiums, but it helps to make sure you engagement ring is adequately covered if something happens to it. The best engagement ring insurance is coverage that fully mitigates loss or damage under as many foreseeable scenarios as possible.

What isn’t Covered Under Engagement Ring Insurance?

There aren’t too many things you can’t plan for, other than less common events that rarely occur. Most insurers won’t cover things like:

• Damage from rodents, insects, and vermin
• Intentional loss or damage
• Damage from nuclear hazards
• Damage from military acts and war
• Loss by civil authority, such as a property search
• Loss or damage due to manufacturer defects
• Loss or damage due to gradual deterioration
• Loss from voluntary parting

You also won’t typically be covered for maintenance issues, like cleaning, resizing, inspections, or appraisals. However, many jewelers will offer these services as a complimentary bonus when you purchase your engagement ring, so be sure to ask.

How Much Does Engagement Ring Insurance Cost?

Premiums can vary from insurance company to insurance company and where you live can have a big impact. However, on average you can expect to pay between $1 and $2 per every $100 of your coverage amount. This is roughly 1-2% of your engagement ring’s value. So, if you buy a ring that’s $5000 dollars, you could pay between $50 and $100 a year to properly insure it.

However, in cities where theft is a higher risk, these averages could go up even more. Insurance companies will usually base their pricing on historical losses for the area the wearer lives in. Deductibles also factor into your premium costs. As with any insurance policy, the higher the deductible, the lower the premium each month. The lower your deductible, the more you’ll pay monthly.

It’s highly recommended that when you’re not wearing your expensive jewelry, you keep it locked in some kind of safe along with all your insurance and appraisal paperwork. Leaving your jewelry lying on bathroom counter tops or in easy-to-open jewelry boxes is too risky. If someone were to burglar your home, it would be the first place they look.

A locked safe makes a thief think twice before trying to crack it, which gives law enforcement more time to stop the burglar in their tracks and gives your precious jewels the best chance of not being hijacked. Plus, it’s always a great idea once you’ve insured your ring to have all your documents, gem certificates, and receipts in one safe place, preferably fire and waterproof. That way you know exactly where to find them when you need them.

The bottom line is that we believe insurance for different types of engagement rings are essential, especially if you invested a large sum of money to purchase it. Not only is it valuable in terms of sentiment and emotion, it’s valuable because of what you paid for it.

You should be able to rest easy at night, knowing that if the unthinkable happens and you lose your engagement ring somehow or it’s stolen, you can at least get back your financial investment. While it’s still a painful loss, at least then you can decide if you want to purchase a replacement replica ring or if you want to start fresh with an entirely new engagement ring.

*Here at Diamond Nexus, we strive to provide valuable information while being clear and honest about our products. The Nexus Diamond™ alternative is a patented lab created diamond simulate that, among all simulants, most closely imitates the look, weight and wear of a diamond, with two exceptions – it is absolutely perfect in every way, and it costs significantly less. Price points and environmental facts expressed in this blog were taken from popular online retailers and may vary. Learn more about the environmental impact of mining by visiting our blog.