Valentine’s Day is around the corner, are you proposing? Insurance on the engagement ring

February 7, 2014

engagement ringYou’ve put a lot of thought into it. You’ve researched how the diamonds wrap around each other to represent love and eternity, and you’ve chosen a ring that matches your partner’s personality and preferences. You’ve worked hard for it, you’ve planned how you’re going to do it, and now you are ready to make the grandest romantic gesture of all: the proposal. And while it’s not a very romantic thought to think about insuring an engagement ring, when you’re investing that much money—and love—into something, it might be worth it to have protection.

Engagement rings can typically be covered under an extended policy added to homeowner’s insurance called a “rider.” Riders allow you to create a custom insurance plan to cover the things in your life that have value to you—from fine jewelry to furs and other items that have a specific limit of coverage on a standard insurance policy. Like most insurance, these ‘riders’ can typically be insured up to a certain dollar value.

Getting Ring Insurance

In order to get insurance for your ring, you’ll need to provide your receipts as well as an appraisal, reports, which costs a small fee from a certified gemologist. “And remember,” the Knot continues, “If you move after the wedding, make sure your ‘ring rider’ follows you. Some couples have the ring insured at the bride’s house (or her parents’) before the wedding, but forget to add it to the policy for their new home when they move in together.”

On average, the yearly cost to insure an engagement ring runs “$1 to $2 for every $100 that it would cost to replace. In plain English, this means that if your ring would cost $9,000 to replace, you might expect to pay between $90 and $180 per year to insure it—or slightly more in cities where the risk of theft is higher,” the Knot reports.
When you’re looking for a policy, seek one that covers virtually anything that could ever possibly happen to that ring and don’t be afraid to ask questions. Inquire what happens if a diamond or gem falls out, is it covered if it’s lost accidentally or stolen, what do you need in order to make a claim (how will you prove it’s lost or stolen)? Be sure to find out what isn’t covered as well so you’re not disappointed if something should happen that isn’t protected under your policy.

“There is the sentimental value and the actual or replacement cost value to wedding and engagement rings. Of course, you can’t insure the sentimental value,” said Jim Whittle, an assistant general counsel and the chief claims counsel at the American Insurance Association, in an article that ran in the New York Times. The article notes that “homeowner’s and rental insurance policies often cover lost or stolen wedding and engagement rings for what [Whittle] called a ‘small amount,’ typically less than $1,000.”

If you don’t have homeowner’s or rental insurance—or the proposed policy is not what you have in mind—another option is to go with an insurance company that specializes in jewelry insurance.  For this you might want to ask your jeweller which company they recommend, as there are many and policies vary widely.

Wedding bands and engagement rings unfortunately get lost, but one of the best preliminary ways to prevent this is to ensure the ring fits properly. The first thing you should do is get it properly sized and fitted. Then talk to your insurance provider about additional protection and consider saying “yes” to engagement ring insurance.

“You never want to use your insurance,” says Mark Woodall, the president and CEO of Special Risk Insurance Managers. “It’s there if you have to, but you’d prefer that you keep it safe.”