When to Insure an Engagement Ring: The Answer May Surprise You

By  Mac Molli
Updated on 03/21/24
When to Insure an Engagement Ring: The Answer May Surprise You

When to Insure an Engagement Ring: The Answer May Surprise You

By  Mac Molli
Updated on 03/21/24

Part of the Engagement

When to Insure an Engagement Ring: The Answer May Surprise You

By  Mac Molli
Updated on 03/21/24

Although popping the question may take seconds, the proposal (and all of the planning behind it) can take weeks, if not months, to plan. In addition to choosing the perfect date and location, you’ve got to decorate, plan what you’ll say, and, most importantly, select the perfect engagement ring. 

You’ll be in good shape once you have all those details squared away. However, there’s one more thing to consider before getting down on one knee — engagement ring insurance. While not the most exciting part of the proposal, it’s an essential step in protecting your investment. 

Keep reading to learn when to insure an engagement ring, how to choose the right jewelry insurance policy, and how much it’ll cost

Why Should You Insure Your Engagement Ring?

Why Should You Insure Your Engagement Ring?

For most people, the sentimental value of their engagement ring outweighs the actual cost of the item. That’s reason enough to protect it from loss, theft, or damage. But with the average engagement ring priced at over $5,000, it also makes good financial sense to protect your bauble from life’s many mishaps. 

Most experts agree that you should insure your ring if the thought of something happening to it makes you anxious or if you can’t afford to replace it. If nothing else, jewelry insurance offers financial protection and peace of mind. Each policy is different, but generally, they cover the cost of replacement or repair.

When to Insure an Engagement Ring

When to Insure an Engagement Ring

Once you’ve decided to insure an engagement ring, it’s time to think about purchasing a policy. Similar to how you insure a car before driving away from the dealership, so should you purchase engagement ring insurance ASAP. You can apply for jewelry insurance as soon as you purchase the ring. In fact, you can even sign up for a policy over the phone before walking out of the jewelry store.  

That may seem overkill, but imagine all that could go wrong between purchasing the ring and proposing. For instance, someone could break into your car, the ring could fall out of your pocket, or you could drop it. Given just how unpredictable life can be, doesn’t it make sense to have some protection sooner rather than later? 

Some policies start coverage as soon as you submit your application. Others may take a couple of business days if the policy is subject to underwriting review. 

Necessary Documentation 

Speaking of applications, you’ll probably be asked to submit the following documents at the time of policy purchase:

  • A sales receipt: Proof of purchase from a reputable jeweler is a basic requirement for jewelry insurance. 
  • An appraisal: An appraisal considers the 4Cs (carat weight, cut, color, clarity) of the diamond, the type and weight of the metal, the shape and carat weight of other stones, and the model number of the ring. The current retail price of the ring, the origin of the materials, and the quality of the craftsmanship also determine the ultimate value of the ring. 
  • A diamond certificate or grading report: Center stones weighing a half carat or more usually come with a certificate or grading report from an independent gemological laboratory. The report includes measurements of the stone, something that’s essential should it ever be stolen.  

Choosing Engagement Ring Insurance

How to Choose Engagement Ring Insurance

You have three options when it comes to insuring your engagement ring

  • Covering the ring under your existing home or renters insurance
  • Adding a personal articles floater to your homeowners’ insurance or renters’ insurance
  • Purchasing a standalone jewelry insurance policy 

Let’s take a look at the pros and cons of each option.

Covering the Ring Under an Existing Insurance Policy

Most renters insurance and homeowners insurance plans cover jewelry stored in your home. Policies differ, but they usually cover up to $1,500 for jewelry

On the surface, this sounds like good news. You’ve got coverage on your ring without having to do extra paperwork. However, it’s important to note that the $1,500 limit applies to all jewelry in the home, not just the engagement ring. For most people, this amount isn’t enough to cover the engagement ring alone, let alone all their jewelry. It’s also worth noting that loss, damage, or mysterious disappearance may not be covered under a standard insurance policy. 

We recommend posing the question of how much does my homeowners’ insurance cover to your insurance company to get specifics. But, in general, we don’t recommend relying on your current insurance policy to protect your engagement ring. 

Personal Articles Floater (Rider)

If the insurance coverage offered by your existing policy isn’t enough, you can purchase a policy extension to cover a lost or stolen ring. Also called a personal articles floater or a rider, this option covers the ring’s full value should something happen to it. 

However, while this option offers comprehensive coverage, filing a jewelry claim on your homeowners’ insurance policy could threaten your eligibility or increase your premium the next time you renew. 

Standalone Jewelry Insurance 

The final option is to purchase standalone jewelry coverage. Whether you find yourself without homeowners insurance, don’t want to risk your premium going up, or need to insure an expensive ring, insuring through an independent jewelry insurance provider is the ideal choice. These policies also provide coverage other insurance companies don’t, including coverage for repairs necessitated by normal wear and tear or chipped stones. 

How Much Does Engagement Ring Insurance Cost?

How Much Does Engagement Ring Insurance Cost?

Like other types of insurance, rates for jewelry insurance depend on a number of factors. These include:

  • The value of the ring: More expensive rings cost more to insure. 
  • Where you live: Theft statistics in your area play a big factor in determining your insurance rate. 
  • Whether your policy has a deductible: Policies without deductibles cost more, but you’ll have an easier time getting a reimbursement.  
  • Where the ring is stored: You might be able to get a lower premium if you have a home security system, install a safe, or rent a safety deposit box. 

Considering everyone’s situation is different, engagement ring insurance typically costs 1–3% of the ring’s value each year. For instance, a $5,000 ring will cost approximately between $50 and $150 per year to insure. 

Engagement Ring Insurance Policy FAQs

What Documents Do I Need to Get Engagement Ring Insurance?

When purchasing a personal items floater or a standalone jewelry policy, you must provide a sales receipt and an appraisal of the ring. The appraisal should describe the ring, including carat weight, cut, color, and clarity. Most importantly, it should give an estimate of the ring’s current value. 

Who Pays for Engagement Ring Insurance?

Because it’s important to insure an engagement ring as soon as possible, the person buying the ring should be the one to pay for the insurance, at least initially. If you decide to change or extend your coverage in the future, then you and your partner may decide to split the cost. 

Do People Normally Insure Engagement Rings?

According to a survey conducted by Value Penguin, 62% of people live without engagement ring insurance. Coverage is slightly higher among those with rings ranging from $5,000 to $10,000 in value. Out of this group, about 29% lack coverage. 

Visit The Groom Club for Everything Engagement

Now that you’ve got a handle on engagement ring insurance, it’s time to move on to more exciting topics. Head over to The Groom Club’s Engagement page for information about crafting the perfect proposal, how to share the big news on social media, and expert tips for throwing an unforgettable engagement party. 

You May Also Like: