Engagement Ring Insurance: What You Need to Know
You’ve probably shopped around for insurance before, in the form of auto, life, health, or even renters/homeowners policies. From the first time you see that shiny diamond ring sparkling on your left hand, though, you might be thinking about an entirely new type of coverage: engagement ring insurance.
Jewelry insurance — especially for pieces like engagement rings — is a very specific product designed to protect your valuables against theft, loss, or even damage. It can cover your wedding set as well as any other high-dollar pieces you own, like earrings, watches, and more.
But just how important is jewelry insurance, and do you really need to buy it for your engagement ring?
Jewelry Insurance Coverage
If you wear (or even just own) expensive jewelry, including an engagement ring, you need to think about the “what if” scenarios. With jewelry insurance, your valuable pieces can be covered against things like:
- Mysterious disappearance
Depending on the policy you choose, you can be protected no matter what happens to your special pieces. As with other insurance products, you’ll need to pick the policy that best suits you, get approved, and begin paying premiums.
You will likely need your jewelry appraised before you’ll be approved for coverage. Some retail pieces — like most engagement rings — come with certified appraisals, though your insurer may have additional requirements.
Non-Jewelry Insurance Coverage
If you have other insurance, such as homeowners or renter’s policies, you may wonder why you need jewelry insurance. After all, these policies often cover loss or theft of items like jewelry.
However, these non-jewelry policies rarely provide enough coverage for things like an engagement ring. That’s because:
- They typically have limits on items like jewelry, which may be significantly less than your valuables are worth.
- They may only cover you from certain events (like a fire) or theft, but not damage or other types of loss.
- Homeowner’s policies usually have a deductible around 1% of the home value, even if you’re only claiming jewelry.
To ensure that your special pieces are protected under any circumstance — and for their full replacement value — you’ll need specific jewelry insurance. Plus, avoiding a painful deductible when making a jewelry claim is an added perk.
Questions to Ask Before Buying Jewelry Insurance
If you’re still on the fence about whether or not to purchase a jewelry policy for items like an engagement ring, ask yourself the following questions.
What is the value of my engagement ring (and/or other valuable jewelry)? Before you ever start price shopping or even contemplating coverage, you need to calculate how much your items are actually worth.
Does this replacement value surpass my existing coverage limits? Thinking that you’re covered by existing policies, such as homeowners or renters insurance? Check your jewelry’s appraised value against your policy limits — you might be surprised to learn that your existing coverage falls very short.
Can I afford to replace this if it’s lost or stolen? Insurance is usually worthwhile if you have an item that you cannot afford to replace out-of-pocket. If your engagement ring went missing today, do you have the money to cover a replacement? If the answer is no, you probably need insurance.
How Much Does It Cost to Insure Your Jewelry?
The general rule of thumb is that you’ll pay around 1-2% of an item’s value when purchasing personal property insurance. So, if your engagement ring is appraised at $9,000, you can expect to spend somewhere in the neighborhood of $90-180 per year for insurance coverage.
Some policies will have a deductible, though others may not. A higher deductible may mean lower premiums, though a lower deductible may be easier to manage if you need to make a claim in the future.
Additionally, you will want to ensure that whichever policy you choose includes the coverage options you feel protect you the most. For example, some policies will only cover certain types of loss or theft, but won’t cover damage to a piece. Others may cover all three, as well as loss under mysterious circumstances (such as your ring simply disappearing one day).
The more coverage options you have, the more you can expect to pay for the policy… but the better protected you and your jewelry will be.
Is It Worth the Expense to Insure Your Engagement Ring?
The average engagement ring cost in America was over $6,300 in 2018. Combine that with a wedding band and other valuable pieces — such as a watch or diamond earrings — and you may very well be walking around with $10,000 or more in jewelry each day.
Jewelry insurance isn’t as imperative as other forms of coverage, such as auto insurance or life insurance. However, if your engagement ring were to be lost or stolen tomorrow, jewelry insurance can help you replace the piece without draining your savings account in the process. Plus, premiums are typically very affordable, making it a no-brainer.
If you could not afford to replace your jewelry, were it to be taken or go missing, consider buying insurance on it. With many coverage options, reasonable (or non-existent) deductibles, and low premiums available, can you honestly afford not to buy a policy?