Jewelry insurance can help protect your valuables and your sentimental or heirloom pieces. But at what price? The cost to insure engagement ring varies depending on the insurance company you choose and the type of policy you opt for. Engagement rings (and wedding bands) are a significant investment that is worth protecting. Without engagement ring insurance it is uncertain whether you’d be able to afford to replace or repair your ring if it got lost, stolen, or damaged. Here are a few tips to help you figure out how much your jewelry insurance will cost.
Is Engagement Ring Insurance Worth the Investment?
Yes, it is definitely worth getting engagement ring insurance. Jewelry insurance is not expensive, but it can make a huge difference when you actually need to make a claim. Ask yourself whether you would be able to afford to replace your engagement ring if it were lost or stolen. And engagement ring insurance covers repairs if your ring gets damaged. For the few dollars that it costs to insure your ring, it is definitely worth it.
Comparing Insurance Providers
If you’ve decided to insure your engagement ring then you need to shop around and compare the coverage offered by different insurance companies. You should make sure your policy includes:
- Theft coverage
- Loss coverage
- Mysterious disappearance coverage
- The cost of repair or replacement of a damaged engagement ring
- International coverage
- No deductibles (money you have to pay out-of-pocket when making a claim
- Preventative maintenance (stone tightening, prong retipping, replacing broken, worn, or bent prongs of the setting)
- Coverage for 100% or more of the replacement cost (the true amount it would cost to replace a diamond engagement ring and not the “actual cash value” which may not be enough to replace the ring)
- Reasonable premium rates (the average is 1%-2% but some companies offer 0.5%-1.5%)
- Does it cover damage due to hurricanes, floods, and earthquakes?
- A straight forward online claim process
How To Reduce The Cost of Your Engagement Ring Insurance
- Your insurance premium will be lower if you get a home security system installed in your home.
- Your insurance premium will be lower if you have a safe where you keep your jewelry or if you rent a safety deposit box to keep your jewelry.
- Get your jewelry properly appraised. Sometimes the value of engagement rings is elevated by the vendor, and this can put your premium up. Rather get an independent appraisal from someone other than the jeweler where you bought the ring.
- Pay your insurance premium annually instead of monthly to get a discount.
Homeowners Insurance Will Cost You More In the Longrun
You might be tempted to simply add your engagement ring to your homeowners insurance policy but this has several drawbacks. Homeowners insurance may only cover your ring if it is in your possession at the time of the theft or loss. If you make a claim against your homeowners insurance for lost or stolen jewelry it could mean paying a higher premium when it comes time to renew your insurance. With homeowners insurance jewelry comes under the category of “personal property” and this can mean that coverage of $1,500 has to cover all personal property including your jewelry. The settlement you’d get for a lost engagement ring would probably not cover getting it replaced. Homeowners insurance “riders” don’t cover all instances of loss. For example, these policies rarely cover mysterious disappearance of your jewelry when you don’t know if it was lost or stolen. In other words, adding your engagement ring to your homeowners insurance may be cheaper in the short term but will cost you much more in the future to replace or repair your ring.
How Much Does Engagement Ring Insurance Cost?
Generally, you can expect to pay $1 or $2 dollars for every $100 of the value of your engagement ring. This works out to 1%-2% of the total value although some jewelry insurance companies offer 0.5%-1.5% rates. So a ring worth $5,000 would cost about $50-$100 a year or $4.1-$8.3 monthly to insure.