Getting Insurance for Your Engagement Ring

August 27, 2014 No Comments »
Getting Insurance for Your Engagement Ring

First off, congratulations! You “finally” stepped up and bought an engagement ring, something you couldn’t imagine doing for years. Good for you.

The last thing you probably want to hear right now is that you need to insure the thing, given the fact that you just dumped several paychecks on the precious stone and setting, but it’s a reality that can’t be ignored.

What if the ring goes missing, or the diamond falls out of the setting? Or the ring gets damaged or stolen? There’s plenty of bad stuff that can happen to a very expensive, small item. And you certainly won’t want to go out and buy another one.

At the same time, you’ve already spent a ton of money on the ring, so insurance just sounds like the final insult. But like anything else in this world worth insuring, it probably makes sense to buy some coverage.


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What Does It Cost to Insure My Engagement Ring?

First some good news – if you didn’t spend all that much on the ring, the insurance coverage shouldn’t be that expensive.

And now for the bad news – if you spent an arm and a leg on the ring, you’ll probably be stuck paying a ton for the insurance.

After all, if you need to insure something that costs the same amount as a car (and doesn’t lose value over time), you’re in big trouble.

While the price will certainly vary based on the type of coverage you receive and where you get it from, the average cost to insure an engagement ring ranges from $1 to $3 per $100 in value per year.

So if your engagement ring is appraised at $20,000 (make sure you have an appraisal), we divide that number by 100 (200) and then multiply by anywhere from $1 to $3.

In our example, that means the annual cost to insure the ring can range from $200 to $600. Of course, that’s just a ballpark estimate.

It also depends on where you live, what coverage you get, what deductible you choose (if any), and so on.

Tip: Look beyond your current insurer for engagement ring coverage. They probably won’t offer the best deal.

Who Is Actually Buying the Coverage?

Here’s another important question to ask yourself when seeking coverage for the ring. Who should buy the coverage?

The answer depends on who is in possession of the ring. If the ring has been purchased, but still hasn’t been presented to the recipient, the buyer should purchase the coverage.

Once the ring is given to the recipient, they should be the one who buys the policy, and it should be in their name seeing that they’re the owner.

And if the couple doesn’t live together yet, be sure the ring is insured at the proper address where the owner lives.

Isn’t My Engagement Ring Already Covered?

Not so fast. First of all, there are limits for the contents on a homeowners insurance policy, which are typically half of the amount you have on the structure itself.

Then there are sub-limits for certain categories of items such as jewelry. So you might find that the most you can get for your lost or stolen engagement ring is $1,500, minus the deductible.

In other words, your homeowners or renters insurance policy may provide little to nothing in the way of coverage for your expensive jewelry.

So you’ll likely need to purchase a jewelry floater to cover an engagement ring that greatly exceeds your existing coverage limits.

A floater will not only increase your coverage, but it may also expand your coverage to an all-risk policy that provides insurance for different types of loss beyond just theft or another specified peril.

The downside here is that the floater will come from your existing insurer, and there’s a good chance they don’t specialize in jewelry insurance.

In other words, you’ll likely pay more to insure your engagement ring via the insurer currently providing coverage for your home or apartment.

So after getting a quote from your insurer, which is the obvious first step, think about shopping for coverage with other companies, specifically those that specialize in jewelry and engagement rings.

You should be able to save some money and fine tune your coverage with the latter.

At the end of the day, your insurer probably won’t offer the best deal because they’re more concerned with major lines like auto and home, not jewelry.

And you might find that the bigger names will only offer insurance for your ring if you buy an auto or homeowners policy with them.

In any case, always shop around and get plenty of quotes before deciding on a carrier.

Tip: You might be able to lower your premium by purchasing a safe and storing the ring and related documentation inside.

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