Engagement Ring Insurance: What You Need to Know

what to know

After the excitement of the engagement announcement and the purchase of the engagement ring have died down, the next step is to insure the ring or add the item to your current insurance policy. An engagement ring is a significant investment and while the ring itself will have a guarantee against faulty workmanship, the couple should insure it against theft, loss and damage.

What You Need to Know About Engagement Ring Insurance

Most homeowner’s insurance policies and renter’s policies allow for extra valuable items to be added to the existing policy. This will mean paying a higher premium but as least the expensive engagement ring is insured, giving the couple peace of mind.

The couple should get the ring appraised, which will show the dollar value of the ring and a description of the ring setting, carat weight, cut and clarity. If the ring was purchased at a discount or on special, it is important to insure it for the amount it would cost to replace it.

Taking a photograph of the ring is a good idea to help find a stolen ring or to recreate it if need be. The engaged couple will also need to keep their receipt, as their insurance may need a copy of this in addition to the appraisal.

What to Ask Before Choosing Engagement Ring Insurance

There are a few questions couples should ask before choosing engagement ring insurance. These include:

  • Will the policy cover 100% of the value of the ring?
  • Does the policy cover damage to the ring?
  • Will the ring be replaced in the event of theft or loss, or will the insurance company send a cheque for the ring’s value?
  • Does the policy cover repairs?
  • Will replacement or repairs of the ring go through a specific jeweler?
  • Will the premium go up if the ring is lost or stolen?
  • Is there a deductible/excess on claims?
  • What is required if the ring is lost or stolen? Eg: Police report.
  • If the ring is an antique piece, how will the insurance company deal with replacement?
  • What doesn’t the policy cover?

How Much Does Insuring an Engagement Ring Cost?

While the cost of engagement ring insurance can vary from company to company, a rough guideline to what the extra premium would cost is $1 to $2 of the ring’s value per year, according the article “Insurance 101: Engagement Ring Insurance on The Knot.com. So if the ring would cost $5,000 to replace, the extra premium would be around $50 to $100 per annum.

Regardless of how much the ring is worth, the sentimental value can mean much more. Still, insuring the monetary value gives the couple peace of mind that should something happen, they can get the engagement ring replaced.

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