Why You Should Insure Your Engagement Ring

If you are newly engaged, you may be wondering why you should insure your engagement ring. No one questions insuring large investments such as homes, cars, and their health. An engagement ring, however, is both a financial investment as well as a sentimental one, and it is wise to purchase jewelry insurance to cover your engagement ring in case of damage, loss, or theft.

A valuable engagement ring should be protected.

Why You Should Insure Your Engagement Ring

No one can predict the accidents that might befall an engagement ring. Simple housecleaning chores could result in damage to the band or setting, and an innocent sporting activity could loosen a stone – small defects you may not notice until it is too late, no matter how well you care for your engagement ring.

Damage

Insurance policies may cover damage to your engagement ring such as a warped band, twisted setting, or missing stone. Despite the best care, accidents can happen: a car accident can easily damage the jewelry you are wearing, and a medical emergency may require your ring to be cut away. Properly insured, these types of damage are not a hardship. Your insurance policy may have a deductible that requires you to pay an initial fee, but more extensive damage would be covered by the policy.

Loss

The cliché lost engagement ring is always down the drain: the bathtub, the kitchen sink, or the shower. Engagement rings can become lost in other ways, however. While swimming in a lake, river, or ocean, your fingers shrink and your ring could slip off unnoticed. You could remove the ring in a hotel room while traveling and forget to put it back on in the rush of leaving in the morning. Unnoticed on the carpeting, your ring could fall victim to a vacuum cleaner. A pet could be attracted by the glittering morsel, or it could accidentally end up in the trash. In any case, if your ring is lost, a comprehensive insurance policy can help replace it.

Theft

Pawn shops are well stocked with engagement rings, and thieves can easily sell off a valuable piece of jewelry long before they are discovered. Given the sentimental nature and emotional upheaval involved in selling an engagement ring, many pawn shops will not ask too many questions when a customer has one to part with. If your ring is stolen and the police are unable to recover it, proper insurance policies can help recoup the financial loss.

Types of Engagement Ring Insurance

There are several different types of engagement ring insurance policies. Each one varies in what it will pay depending on the circumstances of the claim, and different policies have different maintenance costs. Before purchasing engagement ring insurance, always investigate the different options and what their reimbursement procedures are.

Homeowner Policies

Many home insurance policies will allow you to add value for expensive household items, including jewelry. While this will help protect your engagement ring against theft or home-related damage such as a fire or tornado, these large-scale policies typically do not cover damage related to household chores or other incidents, nor will they cover damage outside the home.

Replacement Policies

A replacement policy is placed specifically on the jewelry in question and will help refund the cost of replacing the ring under the terms of the agreement. You would be able to replace the ring with an identical new piece in terms of diamond size, setting, and metal – all at current market values. Therefore, if your original ring would be more expensive today, your replacement policy will pay the increased cost of the identical ring. Of course, if your ring is less valuable than when it was purchased, you cannot claim the additional investment.

Actual Value Policies

An actual value insurance policy replaces the cash value of your engagement ring minus the depreciation from its use. For example, if you have a $500 engagement ring but it is five years old, the cost of those five years would be deducted from the value of the ring because of daily wear and use. Basically, you would be paid a used ring price if you needed to claim replacement on this type of policy. Actual value policies are the least expensive insurance option and are the most common choice.

Valued At Policies

Valued at policies are the rarest and most difficult types of insurance policies to find. You can set the value of your ring – including costs for sentimental value, heirloom consideration, or “time and trouble” clauses for customized jewelry – and if it is lost or stolen, the insurance policy pays the amount you have set, even if it is higher than the appraised value of the ring. Naturally, these are the most expensive types of engagement ring insurance policies.

Where to Purchase Engagement Ring Insurance

Not all insurance companies offer policies for jewelry. A reputable jeweler will be able to recommend several insurance options. In order to properly insure your ring, always provide the appropriate documents to the insurer: original purchase receipts, Jewelry Lab Certificates and Appraisals, records of maintenance work such as resizing or repairs, and information about any treatments the ring has received that affect its value.

An engagement ring is both a financial and an emotional investment and that is why you should insure your engagement ring. By purchasing insurance for your engagement ring you may not be able to prevent damage, theft, or loss, but you can guarantee that at least a portion of your investment is protected.

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