Insuring an Engagement Ring
If you wear your engagement ring every day and you don’t have the ready cash to buy a replacement in the event the ring is lost, you should probably consider buying engagement ring insurance.
But you probably already have insurance in place: your homeowner or renters policy. Depending on your policy, your engagement ring might already be covered under your existing homeowners or renters’ insurance policy as personal property, up to a certain amount. However, read your policy to see if the ring is covered and if you are not sure check with your insurance company.
If the value of your engagement ring exceeds your homeowners or renters’ insurance policy coverage limits for personal property loss, you may want to buy an endorsement or “jewelry rider” to cover the full value of the ring.
The “rider” or “floater” provides a specific amount of coverage for a specific piece of jewelry, in this case your engagement ring, based on its appraised value. The rider policy can cover most if not all the cost of buying a replacement ring. It also provides coverage for a loss no matter where or how the loss happens.
The premium you pay to insure the ring, to buy the engagement ring insurance, will be based on the appraised value of the engagement ring, the type of coverage that you select and the area that you live in.
To add the engagement ring to your existing homeowners or renters insurance policy, your insurance company will most likely require a copy of the bill of sale, an appraisal and photo or video of your ring.
If your have a diamond engagement ring, it would be advisable to get a diamond certification, or diamond grade report, for the diamond and to provide the insurance company with a copy of the certificate. The certificate documents a diamond’s various attributes and dimensions and it leaves the insurance company less room for arguments over the diamond’s actual quality, should you ever need to file a claim if the diamond is stolen or lost in the future.
Don’t forget to store the appraisal, certificate, bill of sale, and photo in a safe place, like a safety deposit box or a home safe that’s fireproof and waterproof. You will need them if you ever loss the engagement ring and need to file a claim with the insurance company.
The engagement ring should be re-appraised every three years or so and the new appraisal sent to your insurance company.
Besides a rider policy to your existing homeowners or renters’ insurance policy, you can also consider checking out insurance companies that specialized in jewelry insurance that offer stand alone policies for insuring an engagement ring.
However you buy the engagement ring insurance, the peace-of-mind is well worth the cost of the insurance.