Engagement Ring Insurance Tips

You’ve picked the perfect ring to represent your commitment and now you’re ready to embark on your new life with the one you love. What next? It may not sound fun, but if you want to secure your investment and start your relationship in a financially responsible manner, you should consider engagement ring insurance.

Property Insurance Rider Vs Specialty Jewelry Insurers

For most people, this will come down to choosing between adding your engagement ring to your homeowner’s insurance or to selecting a specialty insurer to cover your precious new jewelry. Here are the basic pros and cons of each of these options.

Add Your Ring to Your Homeowner’s Insurance

The main benefit of insuring your ring with your existing property insurance company is that it is often simpler and cheaper. That company already knows you and already insures property you’ve registered with it. By incorporating your valuable new property with your existing coverage, you simplify the process while saving yourself some time and money.

However, what happens if you lose your ring while on vacation far away from home or any of your property? What if you have a complex situation, like the ring is damaged or stolen while away from home?

Homeowner’s insurance often won’t cover problems incurred outside of the home, and if it does, it tends to involve more restrictions on what the insurer will reimburse. Another potential drawback is that adding your engagement ring to your property insurance could increase what you pay for everything else on that plan. Your ring becomes an additional liability to your overall property.

Find An Insurer Who Specializes In Jewelry

There are several well-established insurance companies who specialize in covering jewelry. These companies feature departments and employees with specific jewelry experience, from how to appraise different pieces, to how the value of these different pieces change over time, to all the unique things that can go wrong with your precious gems.

So they often provide more comprehensive coverage and security for challenging situations, like if your ring is stolen overseas.

However, all this comes at a cost. The process for getting your jewelry insured will involve far more work and processing. You will need a second appraisal and a gem lab report, and in most cases you will engage in a more intensive application process. Additionally, in most cases it will cost more than just adding it to an existing property insurance plan.

Additional Considerations

Once you choose which direction to take, pay close attention to the details. Always consider individual terms and conditions, including those that apply to appraisals and deductibles. Make sure you understand how the policy differs on damaged, lost or stolen property.

Always keep all receipts and make sure you get both an appraisal separate from the original seller’s appraisal and an official gem lab report, even if your insurance company doesn’t require it. These documents will help you deal with your insurance company should something happen to your engagement jewelry.

Don’t take the decision to insure your engagement ring too lightly. Unfortunate events do transpire, and you want to be prepared if they do. Your engagement ring provides both great sentimental value and great financial value. Make sure you get it covered right.