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Introduction
- If you've managed to find the perfect engagement ring, you'll want to insure it against theft, damage, or loss. Beyond its sentimental value, your ring is also a major investment, so you need to treat it accordingly. Whether through your home owner's insurance, renter's insurance, or outside jewelry insurance company, it's important to protect your ring's value.
Step 1: Research Current Insurance Options
- If you have home owner's or renter's insurance, you may be able to add your ring to an existing policy.
- It's most common to add a "rider", or extension, to your current insurance policy.
- Find out how much a "rider" will cost. Generally, you should expect to pay between $1 and 2 per $100 of the ring's value per year. So if your ring is valued at $10,000, you would pay between $100 and $200 per year to insure it.
- Even though the items in your home may be covered, they are usually only covered up to a certain amount. The average homeowner's policy covers up to $1,000 for jewelry theft and the average renter's policy only up to $500.
- Even if your ring didn't cost a lot of money, it is likely of sentimental value. You should still get insurance so that it can be replaced easily in the case of an emergency.
- Remember that rates vary by city and state.
- You can also research outside insurance options, likely through your jeweler.
- A trusted jewelry insurer is Jewelers Mutual.
- Be sure to keep your ring's purchase receipt, as you will probably need to provide a copy to your insurer.
What to Ask
- Regardless of whom you choose to insure your ring, you should ask these questions:
- How much of the ring's value will this policy cover? (100% or a fraction of the value?)
- Does this policy cover theft AND loss? What about damage?
- If the ring is damaged, are there circumstances that could affect how much I receive (i.e., the bride was kitesurfing at the time)?
- How will you replace the ring? Will I receive a check for its value or will I be required to buy a replacement at a specific jeweler's?
- What if it's a vintage or otherwise unique ring? How will its value be documented? How will it be replaced?
- Do I need an appraisal? Will you only accept reports from a certain list of appraisers?
- If my ring is lost or stolen, how will my rates change?
- Is there a deductible? If so, how much is it? How is my deductible related to my rates? (i.e., If I am willing to pay a higher deductible, will that lower my rates?)
- What are the repair policies? Must I go to a certain jeweler? How do I proceed with a repair request?
Step 2: Get an Appraisal
- Almost all insurers will require an appraisal, and you may need your diamond to be certified, too.
- Have your ring appraised and make sure your report covers all details: clarity, cut, description, any flaws in the center stone, description of the setting, what metal, etc.
- The most important part of your appraisal is the dollar value assigned to your ring. This is how the insurance company will determine how much it is worth if you lose it.
- Have additional items appraised separately (your wedding band, for example).
- Be sure to photograph your ring, as well. This is helpful both to track down a lost piece or to recreate it if necessary.
- Have your ring assessed regularly. If value goes up but your appraisal is out of date, you will not get the full value for your ring that you deserve. Because diamonds and precious metals can become more valuable depending on supply and demand, it is crucial to stay up to date.
- It is recommended that you have your ring appraised every two years due to fluctuations in market value. If you use the same appraiser, you may be able to get a less expensive "update" instead of a new appraisal.
- Remember that a jewelry appraisal and a lab's certification are two different things. A lab will certify a particular gemstone, while an appraiser will assess the whole ring. While certification should never change (your diamond is still the same carat weight, the same color, etc.), appraisal will change over time because value is assessed according to the shifting marketplace.
- See Mahalo's guide on Diamond Certification for a list of reputable independent gem labs.
Step 3: Keep Jewelry Safe
- The best insurance is making your jewelry difficult to steal.
- Put your jewelry in a safety deposit box if you are traveling or will be away from home for an extended period.
- Consider taking only costume jewelry with you when traveling, and never pack your engagement ring (or any other valuables) in checked luggage.
- If you move, make sure your insurance policy follows you. New couples moving in together should make sure that whatever insurance they bought, perhaps registered to an old address, can be moved.
