Whether your engagement ring is worth $500 or $50,000, taking an insurance policy out is a way of making sure it retains value. It means something to you, and that should include financial renumeration in the case of its disappearance.
The good news is there are a few options to choose from. The first is to simply go through a renters or homeowners policy. With this option you would simply add an extension, sometimes called a “rider.” The second option is to obtain personal property coverage, also with an extension. You will want the specific extension that covers particularly expensive items such as jewelry, art, and electronics.
The third option is to go directly to an insurance company that specializes in jewelry insurance. We wrote a previous article about these types of specialized insurance companies. In this case, you may be able to obtain more coverage than you would with a standard renters or homeowners policy.
Also, if you decide to go through your renters or homeowners policy, you need to make sure that your ring rider, the insurance policy extension, follows you to wherever you happen to move. Often times a couple will purchase an extension for its engagement ring, move dwellings, and forget to mention the rider to the insurance company.
There is one other option, but not every jeweler offers it. Sometimes insurance companies will offer policies directly through the jewelry seller. So make sure to ask your jeweler if they work with a carrier that offers ring insurance. These policies vary widely from so be sure to ask specific questions about the amount of coverage.
So how does it work? You'll need the receipt. And you will need to get the ring appraised. You can do that either at the jeweler or through a certified gemologist. This option usually costs a few dozen dollars.
There are a handful of questions that you should ask when shopping around for ring insurance. We’ve narrowed it down to the six most important.
1. Is the ring covered for both theft and accidental loss?
2. How is it replaced? (i.e. check, purchase replacement, etc)
3. If the ring is vintage or unique, how will the quality and size of the replacement be determined?
4. Will it be insured at full cost or only partial?
5. How will you need to go about proving that the ring was lost or stolen?
6. Are there any circumstance under which the ring would not be covered? (For example: If you’re at the zoo and it slips off and a tiger eats it.)
To recap: definitely fold this into your renters or homeowners insurance. If you don't have those, you should consider coverage through the jeweler. Pay a little each month to make sure you don't ever lose it.