If you recently got engaged, the first person you might want to tell about your beautiful ring is an insurance agent.
Engagement ring insurance isn't exactly romantic, but it's a relatively inexpensive way to make sure you can repair or replace your ring if something happens to it.
TWO WAYS TO INSURE YOUR ENGAGEMENT RING
- Buy extra "scheduled" coverage-often called a rider, floater or endorsement-through your homeowner's or renter's insurance company. Standard homeowners insurance and renters insurance includes some coverage for jewelry, but theft coverage is often limited to $1,500.
- Buy a stand-alone policy from a company that specializes in jewelry insurance. You'll generally get reimbursed for the full value if your ring is stolen, lost or damaged.
Your insurer might require an appraisal to finalize your policy. The National Association of Jewelry Appraisers website has a list of appraisers in each state.
Don't assume a jewelry warranty will cover you. Those apply only to defects.
COST OF A JEWELRY RIDER
The cost of a jewelry rider depends on how much coverage you need. A stand-alone engagement ring insurance policy typically costs $1 or $2 for every $100 in value. A study by The Knot, a wedding planning website, found the average cost of an engagement ring in 2016 was $6,163. That puts the annual premium for insurance at around $60 to $120.
You could earn a discount by:
- Having a monitored home-security system.
- Storing your ring in a safe at home or in a bank.
- Using a gem identification registry such as Gemprint.
WHAT THE POLICY SHOULD COVER
Make sure your policy covers the following common ring claims:
- Theft: This would pay out if your ring were stolen-during a home burglary, for example.
- Mysterious disappearance: This would pay out if you lost the ring.
- Damage: This would pay out if your ring were damaged or destroyed, for example in a house fire.
If you buy engagement ring insurance before you pop the question, your soon-to-be fiancee must be named and covered by the policy, especially if you don't already live together. Otherwise the policy could be voided as soon as you give the ring away.