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Should You Insure Your Engagement Ring?

Getting engaged is one of the most exciting times in your life and your engagement ring is probably one of the most valuable things you own. It's only natural then to worry about keeping it safe. Thankfully, there are plenty of options for insuring your engagement ring so that you can enjoy wearing your beautiful ring on your finger without the stress of losing or damaging it.

The average cost of a Blue Nile engagement ring in 2020 was just under $6,000, with the most expensive sparkler sold topping an eye-watering $235,000! And it's not just the monetary value, your engagement ring also holds huge sentimental value. For these reasons, many people choose to insure their engagement rings.

If you've just got engaged, you might be wondering: Should I insure my engagement ring? To get a better understanding of the process of insuring your ring, the costs involved, and common mistakes to avoid, we've enlisted the expertise of Jewelers Mutual, who have been insuring precious jewelry since 1913.

What is engagement ring insurance?

Engagement ring insurance is a form of jewelry insurance that's sole purpose is to protect your valuable jewelry. Just like the insurance we are used to, a standalone jewelry insurance policy protects against things like loss, theft or damage, and other items, depending on your policy.

It's often overlooked which is odd when you think of the cost of buying an engagement ring. We have homeowners insurance, car insurance and home warranties, so it stands to reason that we should also consider insuring our precious engagement rings.

Does your home insurance policy cover your engagement ring?

If you're a renter or a homeowner, jewelry is usually covered in a 'named perils' section of your insurance policy. This means a loss isn't covered unless it was listed specifically on your policy. Also, it is important to note that a jewelry claim filed on your homeowners' policy could affect your entire policy. This is something you may want to avoid.

Some people may find this type of coverage suitable enough, whereas others may prefer to insure their jewelry with a standalone policy. The benefit being that it covers those smaller, but just as valuable jewelry pieces that are separate from your home belongings. A standalone policy will often offer more comprehensive protection against some of the trials you may face if your engagement ring goes missing out of the blue, or in very sad circumstances, has been stolen or damaged.

How does engagement ring insurance work?

Insurance can seem tricky to understand but it doesn't have to be complicated. Knowing how to protect your beloved ring can give you some invaluable peace of mind.

No two insurance policies are alike, but the coverage offered by specialized jewelry companies like Jewelers Mutual creates comprehensive coverage aimed specifically at protecting against the common perils associated with your precious engagement ring.

What's covered

Each insurer will have their own set of inclusions, but as an example, a Jewelers Mutual policy covers you for:

  • Loss
  • Theft
  • Damage
  • Disappearance
  • Loose stones
  • Worldwide travel

What's not covered

It's also important to know what is not covered under the policy. Not included as part of the Jewelers Mutual policy coverage are:

  • War and authority
  • Deterioration
  • Critters
  • Intentional actions

Remember this next time you leave your ring out on the table while your puppy is running about!

Your peace of mind

In terms of what you will receive if the worst were to happen to your diamond engagement ring, most policies will reimburse you for the cost to repair or replace your diamonds. Some companies like Jewelers Mutual go one step further and offer a repair and replacement policy.

This means that you don't have to stress about finding an equal replacement for your piece that will help heal that heart-wrenching sentimental loss that comes with losing or damaging your engagement ring. Under the policy, the piece will be repaired, or replaced with something that's the same kind and quality.

We know that as time passes, tastes and fashions change. If you are ready for a change, the jeweler can invoice the cost to replace what you had and you can choose a ring of equal value or you can pay the difference.

Insurance policies, like those offered by Jewelers Mutual, will also offer jewelry expertise, assist in the claims and provide deductible options.

How much does engagement ring insurance cost?

If you've just gotten engaged and spent a tidy sum on a shiny new addition to your jewelry collection, spending more money in the lead up to the wedding may be the very last thing on your mind. However, it may come as a surprise that jewelry insurance is not as expensive as you think.

It is important to know that the cost of jewelry insurance will be different for everyone. Some factors that can affect price include the value of your ring, and where you live, for example.

Generally speaking, jewelry insurance will cost 1-2% of the value of your beautiful engagement ring. So, if you splurge on a $5,000 engagement ring, expect to pay around $50 per year to insure it. Or, you can look at it like this: you're paying about $1 to $3 for every $100 of the value of your ring. For an exact quote, speak to a jewelry insurance specialist who can guide you through the process.

If you can't get into a store but are still curious about how much it would cost you to insure your engagement ring, Jewelers Mutual offers a free jewelry insurance quote. The quote is based on your zip code, jewelry type, and value.

Why should you insure your engagement ring?

An engagement ring is one of those rare items that you will wear every day. This also means that it is exposed to all the wear and tear of daily activities, increasing the risk of damage from the elements, theft, or loss.

Your engagement ring is a symbol of the bond you share and your intention to spend the rest of your lives together. It may also be a special piece of jewelry that you plan to pass down within your family as an heirloom. Putting the financials aside, it's worth considering how you would feel if your engagement ring were to disappear or get damaged. For many, the terrible sentimental loss and the irreplaceability of the item would be too much to bear.

From a financial point of view, losing or damaging your engagement ring, whether it's worth $5,000 or $50,000 would be devastating. Many couples choose to insure the engagement ring to mitigate this potential blow,

If the worst were to happen, you simply submit a claim and pass it on to a team of experts who understand jewelry and your loss, and are dedicated to helping you through the process.

Companies like Jewelers Mutual will also work with the jeweler of your choice to repair or replace your jewelry piece to make sure it's the same kind and quality as the original.

Tips for insuring your engagement ring

Do

  • Do your research and make sure the policy you choose has adequate coverage that suits your needs and budget.
  • Provide a detailed sales receipt or an appraisal with each piece of jewelry you wish to cover, that way, you will be covered for the correct value if you need to submit a claim.
  • Obtain a diamond certificate or grading report for your engagement ring. Your jeweler will provide you with this and it will assist with your appraisal.
  • Remember to reappraise. Thankfully, the value of your engagement ring has likely increased since it was purchased, so make sure you update your books accordingly for insurance purposes!
  • Ask questions and ensure you understand your policy thoroughly.

Don't

  • Don't make assumptions that you are covered with your homeowners or renters policy as most don't provide extensive coverage if any!
  • Don't wait to start your policy. We know your engagement will be a busy and exciting time, but you'll be kicking yourself if something were to happen in the meantime.
  • Don't keep your valuation documents, receipts, and certificates in an easily accessible location.

Protect what's precious to you

For many of you, this may be the first time you've thought about jewelry insurance. The surprise and excitement that comes with your engagement will surely have you on cloud nine, and digging through the world of insurance will be the last thing on your mind.

Given the sentimental and financial value of your engagement ring, it's worth learning more about jewelry insurance and whether it's right for you. If you want that extra level of protection beyond standard insurance, a jewelry-specific insurer like Jewelers Mutual can be a great option.

With a bit of care, your engagement ring should bring you joy for many years to come.