Here's what you need know about insuring an engagement ring
- Purchasing an engagement ring is often a big expense. By also purchasing insurance, you can be sure you don't pay out of pocket for repairs or to replace the ring if you lose it.
- The best thing to do is to purchase insurance right away: Once you officially make the purchase, you can go ahead and add it to your insurance policy.
- Insurance options include adding a personal property/jewelry rider to your home insurance or renter's insurance policy. If you don't have either of these, you can insure the piece separately through a reputable insurance agency or a company like Jeweler's Mutual.
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Purchasing an engagement ring is often a big financial decision.
Though engagement rings can range in cost from hundreds to thousands of dollars, it's a good idea to purchase insurance as one of the first matters of business. Here's what you should know about how to insure your engagement ring.
Find the best provider and policy for you
"Insurance is very important," says Peter Meksian, CEO of Michael M, a Los Angeles-based luxury bridal and fashion jewelry company. "Most 'home' insurance policies cover jewelry and watches to a certain amount. If you do not have a homeowner's or renter's insurance policy, you can always get an insurance policy from Jewelers Mutual, who specialize in personal jewelry policies."
"You would not own a car without insurance - insure your jewelry," Meksian added.
If you already have homeowner's insurance or renter's insurance, it's likely the policy covers jewelry and watches up to a certain value, but it might not be for the full amount of the engagement ring. If that's the case, you'll be able to add personal property - such as an engagement ring - as a rider to the policy. The cost varies based on the cost of the ring and the provider.
Insure the piece as soon as you can
Experts suggest purchasing insurance before taking possession of the ring. If that's not possible, insurance should be purchased right when you receive the ring.
"Consumers should insure any piece of jewelry that they would not be able to replace on their own if it were lost or stolen. That amount differs from person to person, but can be as little as $1,000," says Oded Edelman, President and co-founder of JamesAllen.com.
"You also need to find out if the policy covers you fully if the item is damaged or lost outside of the United States," says Edelman. "You're probably more likely to be exposed to theft or lose your ring when you're traveling, so this question is key and many policies will have riders that don't allow this level of coverage. Finally, ask if your jewelry is covered at the full replacement cost and if you can receive a cash settlement instead of a replacement item."
Gather the right information for the provider
In order to successfully insure the ring, you will need several items of documentation.
- Appraisal: Most insurance companies will require an appraisal on the piece if it's of significant value. An appraisal will include details like the 4 C's: carat weight, cut, clarity and color, and should be done by a reputable company. Though the piece may appraise for slightly higher than you paid, you'll want it close because a higher appraisal may mean a higher insurance premium. Note: You may want to reappraise every few years to make sure the value is correct.
- Grading Report: The jeweler may also provide a grading report, like those from GIA, the Gemological Institute of America. This will also list the specifications of the diamond or precious stone, but it is not an appraisal. Rather, it will help the appraiser determine the value and thus would be good to submit with the insurance policy. If the ring were to be damaged or lost, the grading report would be used to determine a suitable fix or replacement for the piece.
- Photos: Along with your appraisal and grading report, you may also want to submit photos of the ring to the insurance company so the specifications are met with an exact visual of the piece. This will also aid in helping to repair or replace the item, should you need to.