Putting time and care into selecting the perfect engagement ring is crucial — but safeguarding this symbol of love and commitment is equally important. Enter engagement ring insurance, a financial safety net that provides protection in the event of loss, damage, or theft of your cherished ring.
In this comprehensive guide, we explore cost considerations and insurance coverage options, and provide sample questions to ask potential insurance companies before purchasing a policy. We’ll also touch on alternative insurance plans to help you choose the right coverage for you.
Engagement ring insurance is an insurance policy that provides financial protection should your ring be lost, damaged, or stolen. Policies differ in price and coverage, but, in general, they cover the cost of ring repair or replacement. While financial coverage is the main reason to purchase engagement ring insurance, many insurees also appreciate the peace of mind that comes with a policy.
Depending on your existing homeowners or renters insurance policy, the value of your ring, and your desired level of jewelry coverage, you can either add your engagement ring to an existing insurance policy, or purchase a standalone jewelry insurance policy. Additionally, some specialized policies, like homeowners insurance cover and jewelers mutual, may offer tailored coverage for your precious jewelry.
The cost of engagement ring insurance depends on several factors, among them:
With all these factors considered, it will cost between 1 and 3% of your ring’s value to insure your engagement ring each year. Given that the average engagement ring costs around $5,000, you can expect to pay between $50 and $150 per year for insurance (or between $4 and $12.50 per month).
Before purchasing a policy, understand what will be covered and how claims work.
Here are some questions to ask jewelry insurance companies as you shop for a policy:
Once you have clear answers to these questions, it’s time to purchase a policy. Thankfully, this part of the process couldn’t be easier. In many cases, starting your application is as easy as calling a jewelry insurance company or filling out an application online.
Depending on the company, coverage may start as soon as you submit your application. Otherwise, you’ll have to wait for the underwriting review, which usually takes just a few business days. You’ll likely need to provide a detailed sales receipt and photos of the ring. Some companies may also ask you to provide an appraisal and/or diamond certificate.
Although jewelry insurance provides the most comprehensive engagement ring coverage, it’s not the only option when insuring an engagement ring. Your homeowners’ insurance or renters’ insurance usually includes some coverage for jewelry.
Most homeowners insurance or renters insurance plans cover up to $1,500 for jewelry stored in your home. This is a good option for less expensive rings, as it gives you protection without any extra paperwork. If you’re considering this option, call the insurance company and ask what homeowners’ insurance covers in your specific circumstances and with your existing plan.
Be aware that this $1,500 limit applies to all jewelry, not just your engagement ring. For those with other expensive pieces, this just isn’t enough coverage. Additionally, many homeowners insurance policies exclude loss, damages, or mysterious disappearances in their coverage.
You can also purchase a personal articles floater (also called a rider) to add on to your existing insurance policy. A floater allows you to insure the full value of your ring in cases of loss, theft, or damage. However, with a floater, filing a jewelry claim could increase the cost of your premium or threaten your eligibility for coverage in the future.
So, is it worth insuring your engagement ring?
For most couples, the answer is a resounding yes. Not only is engagement ring insurance inexpensive and easy to purchase, but it also provides the peace of mind needed to wear an engagement ring confidently.
If you still doubt whether you should insure your ring, ask yourself a simple question: Would replacing this ring be a significant financial burden? Replacing a $200, $300, or even $1,000 ring might not drain your savings, but a $5,000 ring might.
Everyone’s financial situation is different, but it’s usually a good idea to insure rings worth $3,000 or more. You and your partner should consider your current financial situation, income, and additional expenses when deciding whether paying an annual premium makes sense.
Everyone’s budget is different, so it’s up to you to decide whether or not insuring a $3,000 ring is worth it. To help you decide, ask yourself whether replacing a $3,000 ring would be a financial burden. If the answer is yes, then you should insure the ring. If not, then insurance may not be worth it.
In general, ring insurance includes lost rings as part of the coverage. This includes rings that are lost in identifiable ways, such as losing it down the drain while washing dishes, as well as rings that seemingly disappear (called mysterious disappearance by insurance companies).
The person who has the ring in their possession first is the one who should insure it. You can apply for insurance over the phone right after purchasing the ring from a jewelry store. If the ring is a family heirloom, you can purchase insurance before proposing.
Insuring an engagement ring is just one part of choosing the perfect piece of jewelry for your beloved. However, besides exploring coverage options, you should also think about engagement ring styles, ring trends, and how to finance a ring without going broke.
Luckily, The Groom Club has articles on all this and more. Check out our engagement page for even more helpful information!
