engagement ring insurance

Do I Need Insurance for my Engagement Ring?

So, you’re newly engaged – congratulations! In the heat of the moment, the last thing you are probably thinking about is getting your ring insured. Once you’ve said yes, your engagement ring becomes a priceless symbol of your commitment to one another, but it’s also a major investment for most couples. Unfortunately, loss, damage and theft occur more than we would like. Luckily, all these can be protected by properly insuring your engagement ring. Our brief guide provides the knowledge you’ll need to make an informed decision on engagement ring insurance. We will go over everything you need to know from the average price of jewelry insurance, to key questions you should ask before insuring your engagement ring.

What is Engagement Ring Insurance?

Ever purchased insurance for a car or a home? Engagement ring insurance works the same way. The only difference is that it covers engagement rings and other similar valuables.

You’ve got a couple of options when it comes to insuring your engagement ring. Your first option is to go through your existing renter’s or homeowner’s insurance to cover jewelry. It’s important to note though, that having a homeowner’s or renter’s insurance policy does not necessarily mean that all of your jewelry is covered. There are many limitations in personal property coverage, so you will more than likely need what’s known as a homeowner’s or renter’s insurance “rider” to make sure your engagement ring has the proper coverage. An insurance rider is essentially an optional add-on that will provide higher coverage limits and protection from more types of risk.

The other option is to buy coverage from a company like Jewelers Mutual, which offers insurance for just about any of your fine jewelry or precious gems. One big advantage of going this route is that they only insure jewelry—not cars, boats, or homes. This way, if there’s an insurance claim, you don’t have to worry about all of your insurance costs skyrocketing. 

The number of plans to choose from is endless, but it’s important to buy one from a reputable source. Your best bet is to go with a company that big insurers or gemology experts will vouch for such as The Gemological Institute of America (GIA) or The American Gem Society (AGS).

Understand How The Price of Your Engagement Ring is Determined

The cost of coverage for your ring is based on several factors such as the value of your ring, where you live (and theft rates in the area), and whether or not your policy has a deductible. Engagement ring insurance plans for most people generally run about 1-2% of the item’s value. For example, if your engagement ring was $5500, you’d pay approximately $55 – $65 annually.

Get an Appraisal

You can’t protect the value of your ring if you don’t know what it is worth. A thorough appraisal includes the carat weight, cut, color, and clarity of all the diamonds, carat weight and shape of any colored stones, the metal type, as well as any markings or stamps. Most insurance companies will require an appraisal for higher value pieces (for example, rings worth $5,000 or more) while an invoice or receipt suffices for less expensive items.

How Can I Get the Most out of Engagement Ring Insurance?

Lemonade, an insurance company that offers coverage from homeowner’s and renter’s insurance to valuable items such as engagement rings, mentions five important tips to make sure your diamond ring is as protected as possible under your insurance policy.

  1. Keep ALL original receipts in a safe and secure spot. You’ll want proof of what you paid and records of the original source of your engagement ring.
  2. For rings and jewelry over $5000, we recommend having an appraisal done by a certified gemologist. Inaccurate appraisal can mean big premiums and financial loss. Be uncompromising in your search for a quality appraisal. Inflated appraisals just create high premiums and disputes if you ever make a claim.
  3. Keep appraisals current as value fluctuations often occur over the years. Engagement rings are long-term investments, and like all investments, have the potential to increase in value. If you want the most out of your insurance policy you must keep this current.
  4. Make sure your jeweler provides diamond certification with a grading report from an independent laboratory. All Blue Nile loose diamonds have been analyzed and graded for quality by the Gemological Institute of America (GIA), one of the most respected and accurate labs in the diamond industry. The GIA offers the industry standard ‘4 Cs’ quality assessment—cut, color, clarity and carat weight.
  5. DO NOT compromise on anything in the process of insuring your wedding ring, engagement ring or other fine jewelry.

Questions to Ask Before You Choose a Policy

The Knot, a website that helps with all your wedding needs, talks about the important questions you should think about when it comes to purchasing a policy for your ring.

  1. Is the ring covered if you lose it accidentally—or only if it’s stolen? 
  2. How will the company replace the ring? With a check? Will they require you to purchase a replacement through a specified jeweler?
  3. What if it’s a vintage ring or other unique piece? How will the quality and size of your diamond—and that of a replacement if needed—be documented? 
  4. Is the ring insured to full cost or a fraction of it?
  5. How will you need to prove the ring vanished if you make a claim?
  6. Are there any circumstances of loss or damage that aren’t covered?

Do I need insurance for my engagement ring? Most likely, yes. Protect your valuables. Don’t wait until it’s too late. Need a copy of your marriage certificateVitalChek can help you get the proper documentation quickly and securely.

Leave A Comment