What Do I Need to Know About Engagement Ring Insurance?
Congratulations on your engagement ring and on taking proactive steps to help protect it! The moment that ring slips on your finger it takes on a life of its own and becomes one of your most treasured possessions. While nothing could ever truly replace it — knowing you have engagement ring insurance to protect it can help give you peace of mind.
Tips for Insuring an Engagement Ring
While you’ll probably insure many homes, apartments and cars in your life — an engagement ring is something special. Insuring an engagement ring doesn’t happen every day so it can seem a little confusing. To help you find the coverage you need, we’ve come up with some handy tips.
Insure it soon. Your best bet is to insure the ring as soon as it’s purchased. This means that the person who buys the ring should establish insurance, at least initially. You never know what can happen before or during the proposal, especially if it’s an elaborate proposal. Having a little extra protection might just save the moment.
Who holds it insures it. Once the proposal has been made and the ring is on the finger, it’s the wearer’s responsibility to insure it. It’s also possible to add the engagement ring to your renter’s or homeowner’s insurance with a rider or scheduled property coverage.
Renters and homeowners have some coverage. Are you wondering why you’d need a rider or scheduled property coverage when you already have renters insurance or homeowners insurance? You’re correct if you think that you’re already covered, but it may not be enough to replace your cherished ring. Most renters and homeowners policies offer some protection for personal property but there is typically a $1000 or $2000 cap on jewelry and a deductible may apply. If your ring is more valuable than that you’ll want to talk to your agent to see how best to protect your investment. Specifically listing your jewelry on a rider or schedule will also give you coverage for more types of losses. For example, simply losing your ring.
What does the insurance cover? Engagement ring coverage can vary so it’s important to ask what specifically is covered in the policy. Be sure to ask what happens if it’s lost, stolen or damaged and check if there are requirements for documenting a loss and/or damage. Finally, make sure you know what jewelers you can use for repairs or replacement.
Insurance is very affordable. Rates vary by location but a standard annual charge of 1-2% of the item’s total value is common. This means that a $5,000 ring can cost as little as $50 a year to cover! If you want to lower your cost even more you might be able to get a policy with a deductible. Your agent can give you more specific information based on your location, ring and policy.
You’ll need documentation. Your insurer is going to want some documentation of your ring’s value. If you purchased it, be sure to hold on to those receipts! An appraisal might be required, but be prepared to pay a little bit for the appraisal itself. If the diamond is a half carat or larger, you’ll probably get a diamond certificate from your jeweler, which is also great documentation of its value.
Reappraise every few years. If you’ve had a policy on your ring for years but haven’t had your ring reappraised, you may want to consider it because jewelry tends to increase in value over the years. If your ring is worth more, you’ll need more coverage so you can replace it if something should happen.
As you’re planning for your future – take the time to plan how you’re going to protect your future. Connect with your American Family Insurance agent to review all of your upcoming insurance needs to make sure you have that safety net of security for your new life together. And congratulations!