Are You Covered? Engagement Ring Insurance

This past weekend, my team and I held a marathon of bridal consultations – And I must tell you that we saw enough “Bling” to blind us for a week.  Wow!

When I jokingly referred to engagement ring insurance to one young couple, I received a blank stare. I quickly realized that this “Baby Hope Diamond” on her finger wasn’t insured.  Oy!

So, I decided to change the subject of the conversation to insurance for a moment.  Why?  Because your engagement ring needs to be insured – Period.

What’s a girl to do?

First things first, contact your insurance agent for your homeowner or renter policy –

Most homeowner or renter insurance policies will allow you to add a rider to your insurance to cover your engagement ring – Just call your insurance agent and inquire about insuring your engagement ring.  Adding the rider to your existing insurance is inexpensive, and costs a lot less than replacing the ring!  But understand that this will help you to protect your engagement ring against theft or home-related damage such as a fire or tornado, but your policy will probably not cover damage related to household chores or other incidents.  Most importantly, this type of insurance will not cover damage outside the home.

Shop around –

Each insurance company is different so you need to shop around.  The average cost of insurance is 1.5 to 2.0% of the cost of the ring.  Here are some questions you should ask potential insurers:

  • What is the deductible?
  • What type of paperwork must I provide if something happens to the ring?
  • When is the ring covered?  When is the ring not covered?
  • Is the ring covered for the full replacement cost?
  • Are repairs covered for damaged rings?

Consider your policy options –

Replacement Insurance Policy – A replacement insurance policy is placed exclusively on your engagement ring.  The purpose of this policy is to refund the money required to replace the ring under the terms of the agreement.  What does this mean?  You will most likely be able to replace your ring with that is identical in terms of diamond size, setting, and metal – all at current market values.  If your original ring is more expensive today than when you received it, your replacement insurance policy will pay the increased cost of the identical ring.  Of course, if your ring is less valuable than when it was purchased, you cannot claim the additional investment.

“Actual Value” Insurance Policy – This policy is quite popular among consumers and it is the most affordable.  This type of insurance policy replaces the cash value of your engagement ring, but subtracts for depreciation.

“Valued At” Policy – This policy type is the least common, it is definitely the most expensive.  Why? Because you set the value of your ring, and you can set it higher than the appraised value.

Already Insured?

If your ring is already insured, I congratulate you for carrying out such a necessary task.  I do; however, have one quick question for you – How current is the appraisal of the ring?  Many insurance companies require a current appraisal to be on file.  If you don’t have a current appraisal, they can deny your claim!  – I know.  That doesn’t sound fair.  – I recommend that you check with your insurance company for their requirements regarding the appraisal including how current it should be and if the appraiser must have any specific certifications.

So, make sure that you are covered!

Love & Soul Always, Kay



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