411: Insuring Your Engagement Ring – Part 2

Wedding Rings

Photo Credit: Martin Coles; Flickr

Insuring your engagement ring can be a great way to honor the sentimental and financial value of such a huge investment. Especially for a young couple, nothing would give them more peace of mind than knowing that a purchase so special can be insured with a policy. If you missed Part 1 to the process on getting your engagement ring, you can find it here: 411: Insuring Your Engagement Ring – Part 1.

  1. Choose a deductible.
    In the case that your ring is lost or stolen, the insurance company can agree to pay a set amount for the ring’s replacement.  However, this amount is paid only after a deductible is met. A deductible is the initial amount of money that you agree to pay before insurance pays for the remaining cost of the thing. You will find that most jewelry insurers can offer a wide range of deductibles. If you choose to go with a higher deductible, then you will have a lower annual premium. Work with the insurer and find the policy that’s best for you.
  2. Take photos of the ring for personal records.
    Many experts would say to definitely take pictures of your ring as part of your official documentation. Get pictures at every angle.  Keep one set with your own records and also send the second set to your jewelry insurance company.
  3. Send all official insurance documents to the jewelry insurance company.
    This includes the appraisal, the receipt, photos, and any other relevant paperwork. They will then send you a policy that you can keep on record. So, if an accident does occur with your engagement ring, you will not lose the value of your important investment.

Questions to Ask Before Choosing a Policy

  1. Will the ring be covered if accidentally lost? Or will insurance only cover the ring cost if it is stolen?
  2. What kind of coverage can I get for a damaged ring?
  3. How will the ring be replaced? For example, will I have to purchase a replacement ring or will I expect to receive a check? If I do need to purchase a ring, do I need to see a specified jeweler?
  4. In the case of a necessary replacement, how will the quality and size of the diamond be documented? What if it’s a vintage or unique piece of jewelry?
  5. Will the ring be insured at full cost? Or only a certain fraction of the entire cost?
  6. How will you require proof of loss of the ring?
  7. Are there situations in which the ring would not be covered?
  8. Is there anything else I need to know about my policy? Can you explain to me everything in the fine print?

Average Cost

To get a better idea of what to expect as payment for your policy, here’s a rough breakdown. For every $100 that it would cost to replace your ring per year, it would cost you $1-2. In simpler terms, if your ring cost $10,000, you can expect to pay between $100-$200 per year. Keep in mind that in cities where theft risk is higher, cost of annual insurance could be higher as well.

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