Is Engagement Ring Insurance Coverage the Right Choice for You?
When you and your partner decide to make a lifelong commitment to each other, generally, one of the first things you purchase is an engagement ring. This engagement ring symbolizes your love and devotion towards each other. Your engagement ring will be one of the most treasured and sentimental pieces of jewelry you will ever own.
Thinking about the emotional attachment you will have towards this ring and how valuable it is no matter how much it cost, you might want to consider purchasing engagement ring insurance. Engagement ring insurance will reimburse you for all or a portion of the ring value if it’s stolen, lost or if any damage happens to it such as the stone(s) fall out or the band is bent or broken.
Nothing would be worse than having the engagement ring of your dreams fall down the drain or have it stolen by a thief.
Thieves target engagement rings because they can be sold rather quickly at any pawn shop. Having engagement ring insurance will cover such incidences.
Ring Appraisal
Before you can purchase an engagement ring insurance policy, you will first need to have your ring appraised by a certified gemologist. The appraisal the gemologist gives you will detail what the ring is worth, the authenticity of the ring design and the quality of craftsmanship on the ring.
You will also want to get a statement in writing from the jewelry store the engagement ring was purchased at stating that the ring is in perfect condition with no flaws such as stones not placed securely in the band or the band being bent or dented. If flaws are detected, generally, an insurance company won’t cover your engagement ring. Some insurance companies will only accept appraisals from their own personal list, so you might want to get a copy of this list before you pay for an appraisal.
Choosing the Right Policy
Once your engagement ring appraisal is complete, you will next need to decide on what type of engagement ring insurance policy is right for you. There are three types of insurance policies to choose from. The most common and most affordable engagement ring insurance policy is called Actual Value Policy.
This type of policy will take the price of your ring at the time of purchase and depreciate it against how many years you have had the ring when you make a claim. The total price the insurance company comes up with would be what you receive after you file a claim.
Replacement Policy
A Replacement Policy is another type of engagement ring insurance coverage.
This type of policy will replace your ring for whatever its worth at the time you file a claim regardless of how old your ring is.
For example, say you purchased your engagement ring for $2,000 and a few years down the road you lost your ring. You go to file a claim and find out your ring is now worth $4,000. You would receive $4,000 instead of $2,000 because that is the current value of the ring.
Valued at Policy
The last type of engagement ring insurance coverage to choose from is called Valued at Policy. This type of coverage will allow you to set the exact price you wish to receive if your ring is lost, damaged or stolen. This is one of the pricier insurance policies and isn’t considered as convenient as the above two policies are. The upside of this type of insurance coverage is that you will always know the exact amount you will get when you file a claim because you have set the price yourself.
Including Engagement Ring Insurance in Another Policy
Another option you might want to consider in addition to the above three policies is to include your engagement ring in your renters or homeowners insurance policy. This will protect your ring if a fire, flood or burglary happens at your home. This policy won’t cover your ring if it’s lost, stolen or damaged away from home, so it’s strongly recommended that you purchase additional coverage from one of the three previously mentioned insurance policies.
Conclusion
The price of engagement ring insurance will vary depending upon where you live, what the appraisal value of your ring is and which insurance company you choose to go through. Typically, you can expect to pay anywhere between 1.5% and 3% of the value of the ring.
Purchasing engagement ring insurance isn’t something you have to do but is strongly recommended for piece of mind in case the unthinkable happens to your precious token of love.