You just bought the perfect engagement ring for your soon to be fiance, but there is still one more thing you need to do before getting down on one knee - get your ring insured. Insuring your engagement ring will not only give you the peace of mind you need to make sure that the investment in your engagement ring is safe, but it will protect the actual value of the ring in case of any event.
We know that while your love can’t be replaced, a ring – if it is lost or stolen – can be. Here is everything you need to know about getting your ring insured:
Ring insurance is similar to other types of insurance.
It can be purchased as a rider, or extension of your renters or homeowners insurance. Another option is to get your ring insured through an insurance company that specializes in jewelry. Often it is these insurance companies that specialize in jewelry that are able to offer you more coverage than a standard policy. For example, a company that specializes in insuring jewelry will often replace a stolen or lost engagement ring rather than just giving you a predetermined cash value for it, which is typically what happens when the insurance is purchased as a rider. Both vary depending on the ring’s appraised value and the type of insurance that you have.
So, which of the options above is right for you?
We recommend that you shop around first and make sure to ask questions about what each policy covers. Some questions that you should ask when exploring your options are: Will the policy only cover if my ring is stolen? Does the policy cover if I lose, damage or misplace my ring accidentally? Are there any events in which my ring will not be covered?
A common question about insuring an engagement ring is how much it costs per year.
While the cost to insure your engagement ring varies on the policy, the value of the ring, and other factors that are taken into consideration, the industry standard to insure your ring per year is $1 to $2 for every $100 that it would cost to replace your ring. For example, if your ring is worth $6,000, it could cost anywhere from $60 to $120 a year. Just like car insurance, a ring appraised at $200,000 in a city where the risk of it being stolen is high is going to have a higher cost per year of insurance rather than a ring appraised at $3,000 in a small town where there is virtually no theft.
To get your engagement ring insured, you will need a ring appraisal.
The ring appraisal helps insurance companies make sure you are insuring your ring for the correct amount. Basically, a ring appraisal acts as a very specific receipt for your purchase. If something were to happen to your ring,the appraisal would act as a guide for how much money you would receive to replace it. An appraisal is a document that takes every detail and grading factor of your ring – the diamond quality, the metal, the setting, and the other stones – and places a monetary value on your entire engagement ring as a whole. Don't worry, we have more information on ring appraisals here.