You said yes and now you’ve got a priceless piece of jewelry on your finger forever. You’ll want to protect this ultra important investment by purchasing insurance for your engagement ring. Here’s where to start:
- From where? Purchase a rider to add to your homeowner’s or renter’s insurance?
- How much? Premiums are based on the appraised value of the ring (you can have th is done for a small fee) and should be between $1 – $2 for every $100 of the replacement cost ($8,000 ring should have an $80-160 annual premium). Things like purchase price, deductible and home residence of the ring-wearer are also factors in yearly premiums.
Things to consider before insuring your ring
- In whose name? The policy can be issued to the person who will wear the ring or the person who paid for the ring. Here’s the thing: the ring-wearer will know the appraised value and cost of the ring so make sure you’re on the same page before sharing that information.
- New Ring or Cash value? Policies are specific to whether the ring will be replaced or whether there is a cash value that will be tendered. Review the terms of your policy before insuring the ring to see which option you prefer. Cash value may be the best method as fighting with an insurance carrier over a suitable replacement sounds like a worse nightmare than speed-dating when you were single.
- Circumstances of Loss? Chose insurance that covers all instances of loss.. Unfortunately rings cannot be insured for sentimental value. Insurance is based on replacement or repair cost of the ring.
If you lose the ring
- File a police report if warranted (theft, burglary, mysterious loss in a public place)
- Notify the insurance company immediately (back this up by notifying them in writing as well).
- Complete the application and Sworn Proof of Loss statement as soon as possible.
- Provide the insurance company with the most recent appraisal of the ring and any documents they request.
Losing a ring is not the end of the world but letting an insurance disclaim coverage because your paperwork was not in order is going to feel like an apocalyptic moment. Put your paperwork in order and file timely everything with the insurance carrier and follow up until they replace your ring!