Everything You Need to Know About Engagement Ring Insurance

From the moment you say "yes," chances are you'll be rocking a shiny new addition on your left hand—an accessory that needs to be protected. Though engagement ring insurance may be the last thing on your mind during such a happy time, with great rings come great responsibilities, and you want to be covered if anything unexpected happens to the beloved rock. Whether you've left your engagement ring accidentally behind on the beach, lost a stone at the gym, or had your ring stolen, engagement ring insurance can offer financial protection and peace of mind when you need it most.

By definition, engagement ring insurance is a contractual means of risk management to protect you from financial repercussions in the event of physical loss, theft, or damage. The policies typically extend to all jewelry items submitted to the coverage scope and result in either replacement, repair, or cost reimbursement. Moreover, while anything that happens to your engagement or wedding ring is heartbreaking, knowing it's properly insured can help to soften the blow. "Jewelers Mutual covers real life with your jewelry," shares insurance expert Tyler Krowiorz. "We realize you can’t always pinpoint how or where your items disappeared, so we cover mysterious disappearance, loss, theft, damage, and worldwide travel."

We've compiled a comprehensive guide to engagement ring insurance and asked Krowiorz to weigh in on what it takes to make sure you'll be able to enjoy your ring for years to come—no matter what life throws at your left hand. Here's everything you need to know about getting your wedding rings insured.

Do You Really Need Engagement Ring Insurance?

Ultimately, it's up to you to decide if your accessory is valuable enough to require financial protection, but most experts agree any proposal piece is a good candidate. "If you’d be upset if your ring was ever lost, broken, or stolen, then it’s valuable enough to insure," says Krowiorz. "If you think you would be devastated about the sentimental loss, afraid to wear other uninsured jewelry, or unable to cover the cost to replace the item, it would be wise to make sure your engagement or wedding ring is covered by insurance."

Engagement Ring Insurance Cost

"Rate is determined by multiple rating variables and factors (like an auto or home policy) to provide a customized rate based on the individual risk characteristics," notes Krowiorz. These variables and factors include the value of your ring, where you live (and theft rates in the area), and whether or not your policy has a deductible. Premiums will always be higher for policies with lower or no deductibles.

Krowiorz further adds that insurance typically costs one to three percent of the value of the item being insured, but can be outside this range based on individual risk characteristics. So, on average, you can anticipate paying $1 to $3 for about every $100 your ring is worth. In theory, then, you can anticipate a premium of $100 to $300 a year for a $10,000 bauble.

Tips for Insuring Your Engagement Ring

What happens if you lose your ring? If someone steals it? If it gets damaged? These are all reasons why you should consider engagement ring insurance. Ahead, we provide a few tips to help you get the best protection and coverage.

Get Engagement Ring Insurance ASAP

Your soon-to-be fiancé or fiancée can insure the ring as soon as it's purchased and in their possession—much like you would insure a car prior to driving it off the lot. You might not initially be thinking of anything happening to your precious and sentimental token, but the sooner it's insured, the sooner you'll be protected. Krowiorz does note that the timeline can vary depending on the individual case, but, in general, coverage can be provided right away (after the application, appraisal, and sales receipts are submitted) or may take a few business days if subject to underwriting review.

Choose a Coverage Provider That's Right for You

When it comes to insuring your engagement ring (or other valuable pieces, for that matter), you have two options. If you have homeowner's or renter's insurance, you can purchase an extension (also called a rider) that covers your engagement ring specifically. But, there is something to keep in mind: "A jewelry claim filed against your homeowner’s policy could affect your entire policy," notes Krowiorz. "So, if your engagement ring was ever stolen or lost, your premium could go up or your eligibility for your entire homeowner's policy could be affected at renewal."

If you don't have homeowner's or renter's insurance, you can take out a policy through an independent company that specializes in jewelry insurance like Jewelers Mutual. "We encourage you to trust your home to your homeowner's or renter’s insurance specialists and your jewelry to the jewelry insurance specialists," says Krowiorz. "Most homeowner's insurance policies do cover jewelry to some extent, but, in many cases, coverage is limited by situations covered, requirements to use jewelry replacement companies, and coverage value limits."

Ask the Right Questions

Being adequately informed is of the utmost importance in deciding which insurance option or provider is best suited to your needs. Make sure to ask a potential policy provider important questions like:

• Can you choose who repairs your ring?
• If you're insured for replacement (instead of a cash payout), where can you purchase a new ring?
• What happens if a suitable replacement cannot be found?
• How will you need to prove the ring vanished if you make a claim?
• Are there any circumstances that aren't covered?
• Will you continue to be insured when out of the country?
• Are you covered for damage or just loss and theft?
• Will the policy adjust according to inflation?
• What types of repairs contribute to the deductible?

"Whenever you insure something valuable, the most important thing you can do is understand your policy thoroughly," says Krowiorz. As you get answers to these questions, you'll have a better sense of which provider can offer the best ring insurance.

Get an Appraisal

You can't protect the value of your ring if you don't know its worth. An appraisal will account for all the key elements of value including carat weight, cut, color, clarity, and quantity of diamonds; types of metal and weight; shape and carat weight of other stones; and any distinctive markings, model numbers, or stamps. Current retail prices in the regional market, origin of the materials used, and craftsmanship of the piece are also taken into account. Most insurance companies will require an appraisal for higher-value pieces (for example, rings worth $5,000 or more), while an invoice or receipt may be sufficient for less expensive items.

Get a Diamond Certificate or Grading Report

If your center stone is around half a carat or larger, your jeweler will often provide a diamond certificate or grading report from an independent gemological laboratory like the Gemological Institute of America (GIA), the organization that founded the "4Cs" used to evaluate diamonds: color, cut, clarity, and carat weight. This assessment of quality—while not an appraisal—lists all of the measurements your appraiser will need to make the most accurate determination of value. (This detailed information can also help track down your specific diamond if it's ever stolen).

Make Sure Your Appraiser Has the Right Credentials

Find a reputable appraiser with sparkling reviews, preferably one who also holds a graduate degree in gemology and is a member of a national appraisal society. (The GIA recognizes these associations.) And, make sure that the appraisal value is accurate and not inflated. Sure, you might be thrilled when the sparkler that cost your partner $2,000 appraises for double, but you could end up losing money in the long run. You'll pay a higher monthly premium for a ring that appraises for $4,000.

Remember to Reappraise

The good news is your engagement ring was a smart investment. As its value has likely gone up since it was purchased, it's important to have your ring reappraised every two to three years for insurance purposes. Most reputable appraisers will retain a copy of your original appraisal and can work from that instead of starting from scratch (this also helps to cut costs). Just to be sure, bring along a copy of your original appraisal in the event that they don't keep records for that long.

Reevaluate Your Overall Insurance Needs

There might be more to think about than just how to insure engagement rings. As soon-to-be newlyweds, you may want to consider ramping up your insurance coverage to account for expensive or hard-to-replace wedding gifts.