This is all about getting your engagement ring insured. It is important to protect your precious sparkler against any risk and getting it insured can certainly reduce the financial burden and stress of losing it.
Importance and Benefits of Insuring Your Engagement Ring
Getting engaged is surely life’s biggest and most memorable moment. And soon after you announce this exciting news to family and friends, you’re most likely to get caught up in the wedding preparations and planning your honeymoon. Well, there’s yet another thing that is equally important and that is, insuring your engagement ring. We know that would be the last thing on your mind, especially amid the celebration and merriment post-engagement. But we are here to tell you why it is worth getting your engagement ring as well as your wedding band covered and how to go about it. Keep reading…
What is Engagement Ring Insurance?
It is a risk coverage offered by the insurance company that covers the perils of losing, damaging or your ring being stolen. Insurance for an engagement ring is a risk management feature that aids your financial loss against any such mishaps. It usually covers all jewellery under the contractual terms and offers repair, replacement or reimbursement of the worth.
Your new ring will be one of the most precious things you’ll cherish forever. So, it’d be best if you secure it against any risk. What if your precious sparkler gets stolen or accidentally lost on a vacation or you lose a stone or two? While it is terrifying and devastating to imagine the loss, an engagement ring insurance in place can certainly reduce the financial impact and give that peace of mind.
How Does an Engagement Ring Insurance Work?
An engagement ring has sentimental value and is worth getting insured, especially if the cost to replace it can lead to a financial burden. Hence, getting your engagement ring insured for better risk coverage is advised. Insurance policies are of different types and premiums.
They differ according to the ring’s value, the stone mounted on it, your location, cases of theft and crime in the area and so on. Though insurance doesn’t sound as exciting as your honeymoon, engagement and wedding jewellery require sufficient protection and are as important as any other wedding preparation.
On average, people spend up to $6,000 on their engagement rings and the value goes up depending on the type of ring and gemstone used. The 3-month salary engagement ring cost rule says that a fiancé might want to invest a value of his three-month salary on the engagement ring. Although this can differ for every couple, the engagement ring is one of the most expensive pieces of jewellery and you would want to consider insuring it and preserving its value.
Why Should You Choose Engagement Ring Insurance?
- Choose to insure your ring if you plan to buy an expensive one.
- Of the total money spent on engagement and wedding costs, insurance would be only a small portion of the investment to secure your stone from risk factors.
- Generally, insurance value is $1 – $3 for every $100 of the value paid annually.
Types of Insurance Coverage
Whether you buy engagement rings online or offline, they can be included in the renters’ or homeowners’ insurance policy. Jewellery insurance is subject only to a specific limit and is not covered under the risk of damage or loss. In most cases, they fall under the deductible category before the insurance company can pay you the reimbursed amount.
One can opt for a rider or a floater policy or extend an existing policy called a scheduling property. The deductible sum is not paid under a scheduled item of the claim. If you do not own a homeowners’ policy, you can opt for a separate policy to insure your engagement jewellery.
Depending on the type and value of your ring, your insurance provider will suggest a suitable policy.
Also read: Engagement Ring Buying Guide
How to Choose a Suitable Engagement Ring Insurance?
1. Coverage Options Provided by the Insurer
Your wedding jewellery insurance must also offer complete coverage like any home or vehicle insurance. After all, one invests their hard-earned money and time in purchasing the jewellery and it is nothing less compared to other insured properties.
Coverage is offered depending on the ring’s value, the engagement ring size, type of stone and metal, etc. A good insurance provider should provide complete coverage of the risk of all circumstances like damage, theft, loss or other factors.
2. Replacement or Reimbursement Policy
Be clear and precise with your provider regarding your insurance reimbursement or replacement procedure. For example, cheque if replacement is offered, whether the company itself will provide a replacement, will partial losses be covered, etc. Before taking up the insurance policy, validate and compare all these factors.
3. Value Assessment in Case of Reimbursement
In cases of reimbursement, analyse on what basis the value of the ring is assessed. First, you must cheque which value of the ring is considered – the value of the original purchase or its current market value. As the price of jewellery is subject to change, this should be an essential criterion for choosing your service provider.
4. Feasibility of Services Offered by the Provider
Cheque if the service provider provides viable services to complete your policy terms. From the documentation and paperwork stage, analyse if the procedure is genuine and convenient for you to go further.
Also Read: How to Finance an Engagement Ring
Getting an Appraisal for Your Ring
When you make the purchase, the jeweller provides an appraisal for the ring. This consists of all specific elements, including the carat cut, weight, colour, number of stones, type of metal and other markings or stamps. This helps assess the market value of the ring and its authenticity.
Most insurance companies require an appraisal certificate for high-value jewellery. So, if your diamond is more than half a carat, get a diamond certificate from your jeweller. A grading report or a diamond certificate is used to evaluate the cut, colour, clarity and carat weight of the ring. Ensure that it is of the correct value for your jewel.
It is advised to have your ring reappraised every once in two to three years for insurance. This helps in assessing the market value of the ring since its purchase.
Also Read: what to do with promise ring after engagement
Conclusion About Engagement Ring Insurance
Engagement ring insurance is the optimal choice to cover any mishaps and dreadful circumstances for your engagement ring. And when you know your precious sparkler is covered, it will put your mind at rest, and who wouldn’t want that?
How to Insure Your Engagement Ring? FAQs
- What is the difference between premium and deductible?A premium is a calculative amount paid monthly, quarterly, half-yearly or annually and can be budgeted. In the case of a deductible, it comes only under circumstances of unexpected damage, loss or theft. Usually, when the deductible increases, the value of your premium decreases and when the deductible reduces, the value of your premium increases.
- Are there any ways to bring the premium cost down?Yes, one can reduce the premium cost by:
- Having a burglar alarm system installed in the house
- Having vault coverage by wearing jewelry only on special occasions
- Obtaining a gem print certificate
- Being a loyal policyholder with the same insurance provider
- Can I insure multiple pieces of jewelry?Yes, including multiple jewelry pieces in your insurance coverage is possible. You can contact your service provider to help you with the process.
- What if my ring gets upgraded?If you upgrade your engagement ring with a new stone or color or metal, you must get an appraisal certificate from your insurance provider. The appraisal certificate will help assess the value of the new upgraded ring and re-evaluate your insurance policy.
- What if my ring is a one-of-a-kind piece or heirloom?Inform your insurer that the ring is a one-of-a-kind piece or an heirloom ring and assess the value accordingly.
- How much does an engagement ring insurance cost?An engagement ring insurance is only a small portion of the total expenditure of your engagement or wedding cost. It is usually calculated as $1 – $3 for every $100 of its value annually.
- Does insurance cover a diamond falling out of the ring?Yes, insurance does cover your precious stone falling out of the ring with specialized jewelry insurance. Homeowners’ insurance policy does protect the jewelry from theft and damage but is restricted to a specific value and does not provide coverage outside the house. However, losing your diamond is usually replaced hassle-free with specialized jewelry insurance.
