The Little Known Way to Ruin the Perfect Proposal

Posted by Debbie Arvelo

You choose the perfect location, pick up a new outfit, and select exactly the right music to set the mood. The ring is precisely what she has been hinting at and you just know she is going to say "yes." But what happens if the ring gets damaged, lost or stolen before the big moment?  Yes, it can happen and it has happened.

In recent surveys conducted, it was found that 60% of engagement rings are not insured prior to the proposal. On top of that, 60% of rings are also stored in the home, leaving them at risk for damage, loss and/or theft.

Choosing an engagement ring is the decision of a lifetime, requiring a lot of research and consideration—all coupled with significant sentimental and monetary investments.

Once you’ve found the perfect engagement ring, you owe it to yourself to dedicate some time also to find the right insurance policy to keep it covered in case of a loss. Luckily, with some simple research, it can be a quick and inexpensive experience.

What’s ring insurance?

Engagement ring insurance is a form of jewelry insurance that makes sure your priceless possessions are covered monetarily if they are stolen, lost, or even damaged. In many cases, it can further accommodate repairs and other preventative measures for fine jewelry. Ring insurance provides you with peace of mind, for the piece on your finger.

Who needs to get ring insurance?

Generally speaking, any ring of sentimental and monetary value should be insured. After all, in the unfortunate event that something happens to it, paying for a new one is a very sour cherry on top of an already stressful situation. The amount of insurance you pay is relative to your jewelry cost, meaning every ring is worth insuring – from those under $1,000 to the those flaunting several carats.

When it comes to who should have the insurance on the ring, that should be the person holding it. Before a marriage proposal, the ring purchaser needs to have the ring covered under their home (or renter’s) insurance. However, once ring wearer has accepted the ring, it’s their responsibility to insure the ring as a new piece of their personal property.

How do I get ring insurance?

Get an appraisal and reappraisal.

To insure your ring, you’ll have to know how much it’s worth. Take your ring to a licensed appraiser—a quick Google search should list reputable services in your area. They’ll look at all of the stones and metals in your special piece and determine how flawless and high-quality the stones are, and the purity of the metal, just like a gemologist. Unlike a gemologist, they will then give your ring a monetary value, and issue a signed certificate with the appraisal value on it.

Due to fluctuation in the prices of gold, silver, diamonds and other gems, it’s a good idea to appraise often—you could be surprised at how much your ring increases in value. Almost all insurance companies will require a copy of this document before insuring your stones.

When it comes to selecting an insurer, you’ll have the option to either choose a jewelry-specific insurer or add it to your existing homeowners or renters insurance.

A note on adding your ring to existing property insurance:

If you intend to insure your ring under the same umbrella as your existing homeowners or renters insurance, it’s essential to know that the stated ‘jewelry coverage’ under your homeowners or renters insurance might not protect you without some additional steps and addenda.

Any insurance plan covering your home will pay out for loss of personal property – about 50 to 70 percents worth of your total home insurance value, after the deductible. That does include jewelry; however, many policies will cap jewelry-specific payout at around $1,000. And if your homeowners' insurance deductible is over $1,000, to begin with, you’re not receiving any ring benefits.

The best way to insure your ring under your existing property insurance is to talk to your insurance agent about adding a “floater,” “rider” or “endorsement” policy. To an insurance agent, it’s called scheduled personal property coverage. To you, it’ll keep your ring’s total value covered in the event of a loss by adding a policy to your established property insurance for the full amount of your engagement ring. That way, if you need to claim it, you’ll receive the total appraised value.

What does it cost to insure a ring?

Though prices will vary depending on your company and policy, you can usually expect to pay 1-2 percent in the ring’s value, per year. So, a $5,000 ring might cost between $50-$100 to insure every year, which isn’t much for a valuable piece.

Like more familiar types of insurance, your premium will drop if you choose a higher deductible with jeweler-specific insurance – which can usually range from $50 to $500, or more depending on your jewelry’s assessment. If you’re grouping it under homeowners, check your rates. Some property insurance companies will change up to 6 percent of the value of the ring, versus the 1-2 percent standard with jewelry insurance policies.

What are some things to look for in-ring insurance?

It’s essential to read the fine print when it comes to purchasing ring insurance. Here are some of the critical aspects of protection.

Replacement versus cash policies.

One of the most critical aspects of engagement ring insurance is the knowing difference between repair or replacement coverage vs. a cash policy. With a cash policy, you’ll receive a check for the money that your engagement ring was last appraised. In an already stressful situation, sitting down with a designer and recreating your ring can be a considerable heartbreak. With replacement coverage, your insurance company will use your last appraisal to work with a jeweler and recreate your ring.

Know what is covered.

There are, unfortunately, more ways to lose an engagement ring that is just having it lost or stolen. Some carriers, such as Jewelers Mutual, will insure what’s called, “Mysterious Disappearance” – where it wasn’t robbed off you, and you didn’t drop it in the ocean. It’s just gone. If you’ve ever misplaced your car keys, you get it.

Consider a policy that includes repairs.

Even if you never lose your ring, donning it daily is sure to give it some wear over the years that results in costly upkeep. Read the fine print on repairs and maintenance for your insurance policy. Does it cover refurbishment? Or are you tightening loose stones? Investing in an insurance policy that covers repairs pays off in the long run, too — fixing a free prong is a lot easier than finding a lost diamond.

Know where your coverage protects you.

Another question to keep in mind when picking your insurer is where the coverage may be limited to geographically, as some policies limit to the United States or North America only. If you’re a frequent jet-setter, make sure your insurance coverage will still be valid if you have your ring stolen, broken, or lost while abroad.

Where can I get the best engagement ring insurance?

Several national companies provide engagement ring insurance with great coverage at a low cost. Weigh the pro’s and con’s of each when selecting the one that’s right for you, and don’t hesitate to call and speak with a representative who can answer your specific questions.

Jewelers Mutual

Endorsed by the American Gem Society, this jewelry-only insurance company allows you to work with your specific jeweler, and choose your deductible. They also cover any loss, as well as repairs.

JIBNA

JIBNA Jewelry Insurance offers premiums as low as $50, and will even insure your antique jewelry, so long as it appraises. Great for those who are wearing their grandmother’s ring or any other family heirloom.

General Homeowners or Renters Insurance

Popular homeowners insurance companies such as Geico, Allstate, State Farm, and Travelers can all add “ring rider” policies to existing plans. Each company differs, but the first thing that you want to look for is a policy with its deductible in the event of a loss. That way, you’re not paying your $1,000 or more homeowners insurance deductible if you lose your ring.

Final Thoughts

When it comes to your engagement ring, insurance really shouldn’t be a question. After all, it’s proper insurance that gives you the easiest route to a replacement ring in the event of a loss or damaged piece — not to mention keeping it in tip-top shape while it’s on your finger. Hopefully, you’ll never need to use your ring insurance claim, but knowing that it’s there can take the pressure off of wearing a stone of such sentimental value every day.



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