Do I Need to Insure My Engagement Ring?

Now that you’re wearing a pricey diamond on your finger, you might be wondering if you need to insure that engagement ring. The answer is yes. Insuring your diamond ring not only gives you peace of mind, it can also help reduce the financial burden of replacing your ring should it be lost, stolen, or damaged.

Insurance Policies That Cover Engagement Rings

There are a few different insurance policies that cover engagement rings and these are the three most common:

1. Home Insurance or Renters’ Insurance

Some couples think the full value of their engagement ring is insured under their home insurance or renters insurance policy, but it’s typically not. Homeowners and renters policies only cover items up to a certain price. For example, jewelry is typically covered up to $2,000 if it’s stolen but the average value of an engagement ring in America is $5,000. That means the policy owner will have to pay $3,000 out of pocket to replace the ring. Worse yet, if the ring is stolen or damaged there’s usually no coverage. The good news is, ring insurance can be purchased as an extension of your homeowners insurance or renters insurance policy and it’s typically quite affordable.

2. Stand-alone Policy

Instead of getting insurance for your diamond ring through your homeowners or renters policy, you can insure it through a company that specializes in insuring jewelry. This is often referred to as a stand-alone policy. Insuring your diamond ring through a stand-alone policy may get you more comprehensive coverage than a basic home insurance or renters policy.

3. Working with Your Jeweler

Another option for insuring your engagement ring is going through your jeweler. Some jewelers work with insurance companies so they can offer ring insurance to their customers.

No matter which method of insuring your diamond ring you choose, your insurance provider will ask for a receipt for the ring and a current written appraisal from a certified gemologist.

What You Might Pay for Ring Insurance

Annually, the cost of insuring your engagement ring will be about one to two dollars for every $100 it costs to replace the ring. If your ring costs $6,000 to replace, you might pay in the range of $60 to $120 per year to have it insured.

Before you buy an insurance policy for your engagement ring, make sure you have a solid understanding of what scenarios the policy will cover. For example, does the policy cover damage to the ring? Will it reimburse you if you lose the ring, or just if it is stolen?

Although protecting your engagement ring may not be the first thing on your mind after getting engaged, it is easy to do and well worth it. Give a licensed agent a call so he/she can make sure you have an insurance policy that adequately covers your ring.