Whether you prefer simple engagement rings or more unique engagement rings, an engagement ring is valuable in every sense of the word. It holds both monetary value as well as sentimental value. It is that physical symbol of your love for your partner and will hold a special place in both of your hearts. It’s going to be worn every day and admired by many. The thought of something happening to it can be devastating. You’ll do anything to keep it safe and engagement ring insurance can help.
How Much IS ENGAGEMENT RING INSURANCE?
While you may be able to find an average annual cost for insuring your ring, there isn’t a concrete number. This is because the price truly depends on the ring details you choose and the overall value it holds. So, the cost of insuring an engagement ring depends on a number of different factors.
Some policies will cost more than others. The number one factor in determining the price of your diamond engagement ring insurance is the value of the ring that’s being insured. The more expensive the ring is, the more costly the insurance is going to be. Where you live, or rather the theft rate in the area where you live, will also impact the cost of your insurance. If the theft rate is low, then the cost of insurance will be low in comparison to areas with higher theft rates.
The deductible you choose can also have an impact on the cost of engagement ring insurance. Your deductible is the amount you will pay out of pocket to replace the ring, should you need to file a claim through the insurance. The more you are willing to pay (a high deductible), the lower the cost of the annual premium for your engagement ring insurance.
How Does Insurance Work on Engagement Rings?
There are two main ways of getting engagement ring insurance (and similarly wedding ring insurance), each working a bit differently than the other. Learn more about each of these options to determine which one is right for you.
Adding to an Existing Policy
One way to insure your engagement ring is to add it to an existing policy such as your renters insurance or your homeowners insurance. Many opt for this option as it can easily be tacked onto your existing insurance plan and you don’t have to think about it again. You can add it directly (with limited coverage) or you can add an extension to your current policy (also known as a rider) for greater coverage.
When you add your engagement ring onto an existing policy, your protection is limited to a specific set of causes where you can file a claim for the ring. Additionally, the claim is set to a specific amount. If you choose a jewelry-specific rider you can often get coverage for the full replacement value of the ring.
Should something happen to your ring and the cause is covered by your policy, you’ll want to file a claim with the insurance company. Once a claim is filed and approved by the insurance provider, they will send you a check for the predetermined replacement value of the ring. It is up to you to find a replacement similar to what you had earlier.
New Policy with a Jewelry Insurer
Another way to insure your engagement ring is to get a policy from a jewelry-specific insurer. There are numerous companies available that specialize in providing insurance coverage for engagement rings and all other types of jewelry and heirlooms. Jewelry insurance covers a wide range of causes. They will help you get your ring repaired or replaced in the case of damage. Most jewelry insurance companies will also let you use the jeweler of your choice for repairs. If you no longer have the ring for some reason, they will help you find a ring that is of similar style and quality.
The main difference between adding on as a rider and working with a jewelry insurer is that a jewelry insurer will help you through the process of finding a similar ring. Unlike adding onto an existing policy, in which they will simply give you a check and you are on your own to find a ring that is of similar quality.
What Does Engagement Ring Insurance Cover?
The type of jewelry insurance you opt for will determine what is covered for your engagement ring. If you simply add your engagement ring to your renters insurance or homeowners insurance, your ring should be covered in the case of theft and possibly if it is damaged or lost in a flood or earthquake (depending upon the specifics of your policy). If you choose to add it to your insurance as a rider you’ll get a bit more coverage. Adding on as a rider often gives you coverage for theft, loss, unexplained loss (mysterious disappearance), and sometimes damage or if it is lost in a natural disaster (again it depends on the type of insurance you have).
On the other hand, with jewelry insurance, your engagement ring should not only be covered in the circumstances listed above but also for preventative repairs, such as fixing prongs and stone tightening and worldwide protection (helpful if something happens when traveling), as it’s often a more comprehensive plan.
Some things are not covered with either type of insurance, such as acts of war, rodents, wear and tear, etc. Just be sure to carefully read the fine print of your prospective jewelry coverage policy to make sure you understand what is and is not covered.
Things to Keep In Mind When Selecting Engagement Ring Insurance
When you are selecting engagement ring insurance you want to consider how your ring is being valued. Oftentimes when you add the ring onto your existing policy (renters or homeowners) the value you paid for the ring (or its documented appraised value) is what will be returned to you in the case of a claim. However, with jewelry insurance companies, they typically use annual Insurance Value Adjustment (IVA). This is where the value of your ring is adjusted with the market so that the value matches what it would actually cost to replace your ring. This means that your premium will also adjust annually based on how the ring is valued. IVA is often optional but is a good tool for making sure you can actually replace the ring with the same value should something happen and you need to file a claim. Remember the ring’s value is based on how big the stone is (expect a 2 carat stone to be more expensive than a 1-carat diamond ring), what metal it’s made out of, etc.
Keeping the value of your ring in mind, it is recommended to keep a copy of your detailed bill. This will help establish how much you spent on the ring and can prove useful when filing a claim. Additionally, you can opt to get your ring appraised. This is especially helpful if it has been some time since you purchased the diamond engagement ring, as it will show the value based on the current market. Using the copy of the appraisal when filing your claim can help you get the amount needed to replace your ring with one of similar value and quality.
You also want to consider how the insurer will procure the replacement ring if it is lost or stolen. Will the insurer simply issue a check (common with adding on to existing policy) or will the insurer replace the ring? If the insurer replaces the ring are you free to work with a jeweler of your choice or are you required to use the insurer’s jeweler?
Another thing to keep in mind is the smaller details of the insurance policy. Review the type of jewelry coverage you are getting with each policy. It is often helpful to consider your lifestyle in relation to the type of coverage you are getting. If you travel frequently, then you may want to go with a jewelry-specific insurer that offers worldwide coverage. Before you make any decision, make sure you fully understand what circumstances are and are not covered by the policy. You also want to make sure you have a full understanding of how to file a claim, should the need arise.
So, Is It Worth It to Insure Your Engagement Ring?
Engagement ring insurance is relatively simple to get and can help repair and replace your ring. Ultimately, it is up to you to determine whether the annual expense can be accommodated by your income. However, you must also keep in mind the value of the ring and its replacement cost. Aside from your engagement ring, you can also insure other pieces of jewelry that you may receive even after you’ve gotten married, like traditional anniversary gifts each year.
While having additional jewelry insurance is always a safer option, you should also be aware of any coverage your jeweler offers. For example, all 12FIFTEEN rings come with a Manufacturing Warranty. This means that for the lifetime of your ring, if there is a manufacturing defect with your setting, we will repair or replace your ring free of charge. With reassurance that your jeweler will honor manufacturing defects along with additional insurance coverage, you can wear your ring confidently knowing it’s fully protected. While there are numerous insurance providers you can turn to, we’ve had first-hand experience with Jewelers Mutual and the comprehensive policies they offer.
It’s impossible to replace all of the memories associated with a specific ring, but having an insurance policy in place lessens the blow by giving you the means to replace it should something happen. Knowing that your ring can be repaired or replaced can bring immense peace of mind. That itself can be invaluable, making engagement ring insurance worthwhile.