It is engagement season, and we’re sure many of you out there are prepping those fingers for a little extra sparkle this season. If you get your wish, congratulations! After everything settles down from the holidays, there is going to be plenty to do to keep you occupied. But, before you dive headlong into wedding planning, it is very important to take some time to get that new ring insured!
Appraising Your Ring
Before you even start looking at insurance, you will need to have your ring appraised. Any ring composed of a precious metal – silver, gold, platinum, and many other alloys – is eligible for insurance whether it contains a gemstone or not. An official appraisal may have come with the ring, so ask your fiancé before getting a new appraisal.
Insurance companies require an appraisal from a certified gemologist, but, luckily, most jewelry stores have one on staff. The appraisal will likely cost around $100, but they will also inspect and clean your ring for you if needed. Make sure the appraisal is signed by the gemologist.
Researching Insurance Companies
There are hundreds of insurance companies who will insure your ring. One common type of insurance is an extension of your homeowner’s or renter’s policy. If you like your current insurance company, contact them for a quote on a personal property rider.
Talk to friends and family about their experiences with their insurance companies. Is it easy to file a claim? Do they respond to claims quickly? Losing your ring is emotional enough; you don’t need a complicated insurance process to make it worse.
Another option for ring insurance is specialized jewelry insurance. Many women opt for this type of insurance because the coverage is more comprehensive. Some jewelers will insure individual pieces, so speak with your jeweler about any coverage they offer or if they recommend a jewelry insurance company.
Make sure you find a company that specializes only in jewelry insurance. The top jewelry insurance company in the U.S., according to Consumer Affairs, is Jeweler’s Mutual and their subsidiary Perfect Circle. They offer great policies with plenty of options to fit every ring and every budget.
Comparing Coverage and Premiums
After you’ve narrowed down insurance companies to just a couple, ask for quotes to insure your ring. They may give you a couple of different quotes for different levels of coverage or different deductible options. Your deductible is the amount you must pay the insurance company before they pay your claim. There are a few other important aspects that you should consider when choosing your policy.
- Is your ring covered for every situation? Some insurance policies only cover theft and not loss or damage. It’s a good idea to choose a policy that will cover your ring no matter what happens to it.
- Will your policy pay the replacement cost of your ring or just the actual cash value (ACV)? With daily wear and tear, the ACV of your ring may depreciate slightly. A replacement policy will pay the amount of your most recent appraisal with no deductions for depreciation. ACV policies are less defined, so you may have to pay out of pocket to purchase an equivalent replacement ring.
- What type of proof must you provide that your ring is gone? Different insurance companies will ask for different proof, but the best companies will make the process simple and hassle-free.
- How will your policy be paid? Some insurance companies will simply give you a check to purchase a new ring wherever you choose. Other companies will send you to an authorized jeweler to choose a ring, and the company will pay the jeweler directly. If your ring is a custom design or an antique, you may prefer to be paid by check to have more options for replacement.
- What will your premium be and how will you pay? The average yearly cost of jewelry insurance is $1 – 2 per $100 value of the jewelry. Remember, the deductible you choose will affect that cost. Ask if the company wants a lump sum payment once a year or if you can pay monthly installments.
Keeping Your Policy Up to Date
After you’ve secured your policy, make sure you keep it current. If you are changing your name after you are married, remember to change it on the insurance policy as well. Don’t forget to change the address on the policy if you move.
Have your ring appraised every other year to ensure the value is correct on your policy. You should also add your wedding rings once you’ve purchased those. Choosing to insure your rings underscores the ring’s importance. While the ring may be lost, the sentiment behind it never fades.