If you say “yes,” odds are you’ll have a new addition on your finger from the time you say it. Of course, this might not be the first thing that comes to mind during such a joyous occasion; magnificent jewelry comes with significant responsibilities, like engagement ring insurance.
What Is Engagement Ring Insurance?
Engagement ring insurance is a contractual risk management tool that protects you from financial consequences if your ring is damaged, lost, or stolen. The plans usually cover all jewelry items filed for coverage and result in either repair, replacement, or cost reimbursement.
What if you misplace your ring? What if it’s stolen? What happens if it’s damaged? You wouldn’t want anything bad happening to your prized possession. Ring insurance can provide financial security and peace of mind when you need it most, whether you’ve had your ring stolen, lost a stone at the gym, or left your engagement ring on the beach by accident.
If you’d be disappointed if your ring was ever broken, lost, or stolen, it’s worth insuring. If you think you’d be unable to finance the expense of replacement, are scared to wear other uninsured jewelry, or are crushed if your engagement ring was stolen, it’s a good idea to make sure it’s covered by insurance.
While the loss of your engagement ring is tragic, knowing that it’s fully insured can help to mitigate the pain. While there are no same two insurance policies, knowing that you have some protections and safeguards against some of life’s most frightening possibilities can be reassuring.
This guide will teach you all you should know about insuring your wedding rings.
How Does It Work?
Engagement ring insurance protects your ring in the event of damage, theft, or loss. While your homes insurance policy may cover your engagement ring, firms that specialize in jewelry insurance can provide you with a policy that offers more comprehensive coverage.
The following is how it works: You’ll buy insurance, make a claim if something occurs to your engagement ring, work out a settlement with your insurance company, and get a check to cover your losses. Replacing or repairing your engagement ring may be more complicated since it may necessitate working with particular repair services or jewelers and submitting required documents.
Who Needs Ring Insurance?
You might be wondering if it’s worth insuring your ring. Is engagement ring insurance vital? Here are several indicators that it would be a good idea:
- A ring is more likely to be lost or damaged. A partner, for example, may work in a field that is harsh on rings or be more forgetful than the usual person.
- If your engagement ring was stolen, lost, or broken and you’d want to replace it.
- According to WeddingWire’s 2020 Newlywed Report, 87 percent of couples had a diamond engagement ring. A diamond engagement ring costs an average of $3,500 to $5,000, a significant sum of money to lose. In most circumstances, jewelry insurers will cover everything from inexplicable disappearances to mishaps in which a diamond falls off your ring.
- It would cost over $1,500 to replace the ring. If that’s the case, existing homeowner’s or renter’s insurance coverage is unlikely to cover the ring completely. You’d be stuck with increased expenditures to repair or replace a ring if you didn’t have supplementary insurance.
Of course, not everyone falls into the above categories, and some people may have little emotional attachment to a ring. Couples who aren’t in a haste to replace their engagement jewelry may not require insurance.
On the other hand, engagement rings are among the most essential and meaningful symbols of love for many individuals. If you fall into this category, obtaining ring insurance might be a wise decision to secure your ring and make replacing it far more inexpensive if necessary.
Engagement Ring Insurance Cost
Multiple rating factors and variables (such as a house or auto insurance policy) are used to create a tailored premium depending on the individual risk characteristics. The cost of insurance depends on many factors, including where you reside (and local theft statistics), the worth of your ring, and whether your policy has a deductible. Premiums for insurance with low or no deductibles will always be higher.
Insurance costs typically one to three percent of the item’s worth, although it might cost more or less depending on the individual’s risk profile. So, for every $100 your ring is worth, you should expect to pay $1 to $3 on average. In theory, a $10,000 bauble should command a premium of $100 to $300 per year.
When Should You Purchase Ring Insurance?
You should purchase insurance as soon as the engagement ring is purchased – even before the proposal! Having engagement ring insurance in place from the beginning ensures that you are protected against mishaps or misfortune.
The Best Way to Insure a Ring
Looking for engagement ring insurance is similar to shopping for other types of insurance. Here are the measures involved in insuring your engagement ring and determining how much coverage you need.
- Determine what’s already covered by your insurance.
- Evaluate different engagement ring insurance policies.
- Show your engagement ring’s value.
- Pick a policy – and make sure you read the fine print.