You’ve just splashed out on some serious engagement bling for your partner, but you’re terrified something will happen to the ring whenever they leave the house. Ring loss, theft, and damage are all too common, so the best thing to do is keep the ring safely locked inside the house… right?
Well, no. Why bother spending all those dollars on a stunning ring only to keep it hidden away? Ensure your partner can show off their engagement ring for years with an engagement ring insurance policy. Here’s everything you need to know.
An engagement ring insurance policy is one you take out to protect an engagement ring against loss or damage. In the event of a lost or stolen ring, you can make a claim on the insurance policy. If the claim is approved, the insurance company covers the cost of replacing or repairing the ring.
Like other types of insurance, you’ll pay a monthly or annual premium for engagement ring insurance, and depending on the policy you choose, you may pay a deductible when making a claim.
Your homeowner’s insurance may include jewelry insurance, either as part of an existing policy or as part of a floater, but you can also purchase standalone jewelry insurance.
Several factors influence engagement ring insurance costs, including coverage type, ring value, deductibles, and location. However, the general rule of thumb is ring insurance costs 1–2% of the engagement ring’s value.
For example, insurance for a $5,000 ring will cost $50–$100 per year; insurance for a $20,000 ring will cost $200–$400 per year. Now, let’s delve into understanding the factors that determine the engagement ring insurance cost.
Ring insurance is surprisingly inexpensive, even for high-value rings!
Jewelry insurance is often included in home or renters insurance. However, that doesn’t mean the coverage is ideal.
Homeowners insurance typically has a low coverage limit in place, and the limit will apply to all jewelry, not just your engagement ring. The limit tends to be around $1,500, so if you’ve spent more on your ring, the coverage is not adequate. You’ll also likely find that homeowners insurance does not cover rings from accidental loss or damage.
You can raise the jewelry coverage limit on your homeowner or renters insurance policy, for an additional premium, but this often still falls short of fully covering the ring’s value.
“Floater insurance” is an alternative. It’s separate insurance for your engagement ring, attached to your homeowner’s insurance policy. It will cover the ring’s full value and will also include accidental loss and damage coverage.
Often, specialized jewelry insurance and a standalone jewelry insurance policy, such as reputable providers like Jewelers Mutual Insurance Group that will provide the widest and best coverage. These policies are also more flexible, allowing you to choose what is and isn’t covered and what deductible you’d like to pay (a $0 deductible is often possible).
Typically, specialized diamond ring insurance will provide coverage for the following:
Typical coverage exclusions include:
First, have a certified appraiser appraise the engagement ring’s value. The appraisal report isn’t always necessary for coverage, but it will be required should you ever make a claim. Regardless, getting an appraisal now will provide you with the ring’s true value so you can buy coverage accordingly.
Next, get quotes from insurers. A good place to start is with your homeowner’s insurance provider and then move on to specialized insurers (such as our best engagement ring insurers for 2023).
To get a quote, you’ll need to provide:
Now, compare the coverage versus the cost. Don’t always go for the cheapest option, as it may not provide enough coverage. Look for the most comprehensive coverage for a fair price.
The more quotes you get, the easier it will be to determine whether or not you’re getting a good deal.
Get into each policy’s nitty-gritty. Shortlist two or three quotes and drill down into the details, including the claims process, terms and conditions, and caveats applied to making claims for certain circumstances.
It’s boring but necessary. Insurers can be sneaky, and if they can find a way to not pay for a claim, they will. Choose an insurer that has straightforward and clear policies and terms of use.
After you’ve chosen an insurer, apply for coverage. You’ll need to provide all requested details and information, such as past convictions, past jewelry insurance claims, who will wear the ring, and more.
Once you provide this information, the insurer will decide whether or not they will provide you with coverage. If you’re approved, you’ll purchase the plan. If not, you’ll need to find another insurer.
Insurers may raise premiums when your policy renewal date rolls around. If you feel it’s unfair (particularly if you’ve made no claims), shop around and find a better deal.
You should insure an engagement ring for its full value. That way, you have full coverage should you need to make a claim. Ring insurance costs around 1–2% of the total ring value, so it is not an expensive investment.
Jewelry insurance is worth it for an engagement ring because it means the insurer will pay to have the ring replaced or repaired if it is lost, stolen, or damaged. Since jewelry insurance costs 1–2% of the ring’s value, this is much cheaper than paying for a replacement ring.
Whoever possesses the ring first should insure the engagement ring. If there is time between purchasing the ring and proposing, the ring can be lost or damaged. It’s best to insure it as soon as possible.
You should get insurance for an engagement ring as soon as you purchase it.
It’s never too late to buy ring insurance. Whether you bought the ring one day ago or one year ago, you can still insure it.
Never mind insurance — if you haven’t even purchased the perfect ring yet, The Groom Club can help. We’ve got all the latest info, from the latest trends in engagement ring cuts and the hottest styles to how to finance your ring without plunging into the red.
When your beloved has said “yes!” and the wedding planning madness begins, we’ve got a ton of information to help with that, too.
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