The Pros and Cons of Engagement Ring Insurance

A diamond engagement ring in a jewelry box.

Before you got engaged, you didn’t think it was possible to love a piece of jewelry this much. Whether you were completely caught off guard with a proposal or you picked out the ring together, that sparkly bauble is your new favorite thing. Your new ring is also a huge responsibility—and may well be one of the most expensive things you own (gulp!). But as much as you love your new ring, there is always a possibility of losing it, damaging it, or, yes, that it gets stolen.

To protect your ring and your financial investment, it’s recommended that you procure engagement ring insurance so that if you damage one of the stones at the gym or lose it somewhere in the sand on the beach, you can get the ring repaired or replaced.

There are two ways to insure your engagement ring:

  1. Through your homeowners/renters insurance policy: You can add in an extension or a “rider” for your engagement ring on your homeowners or renters insurance policy, which essentially is a one-off item on your policy.
  2. Through a specialty jewelry insurer: If you don’t have homeowners or renters insurance or you are interested in special additional protection, you could also insure your ring through a jewelry insurer. These companies, like Jewelers Mutual, offer more comprehensive plans.

Here’s a breakdown of all the pros and cons of engagement ring insurance and how it can be used to protect that priceless piece of jewelry.

Pro: Insurance Protects Your Investment

A diamond engagement ring lost in the sand on the beach.

The most obvious pro of engagement ring insurance is that it protects your investment. As sentimental as this particular piece of jewelry is—it’s a very large investment that you (or your spouse-to-be) have made and it should be protected just like any other asset you own. Depending on the way you insure your ring (through your homeowners/renter policy or a specialty jewelry insurance policy), you can protect your ring from disappearance, fire, theft, and sudden physical damage. Pay special attention to how the rider or insurance policy is worded so that you have an accurate understanding of what is covered and what is not. For example, some insurance extensions may not cover disappearance of a ring if you can’t prove that it was stolen.

Pro: Engagement Ring Insurance Is Not Generally Expensive

While your ring may have been expensive, the good news is that it’s not that costly to keep up with insurance. Most insurance companies will charge you about 1–2% of the total appraised value of the ring. This means that a $5,000 engagement ring will cost between $50–$100 to insure annually. These figures can vary depending on the city and state you live in as well as the size and value of the ring. If you want an exact figure on your ring, call an insurance company for a quote on what your specific annual cost will be.

Pro: Adding Insurance for Your Wedding Ring Isn’t Difficult

A woman sitting in her living room with a laptop open and talking on the phone.

Talking about insurance isn’t generally the most exciting thing you’ll be doing after you first get engaged, but the process for protecting your ring isn’t all that complicated or difficult. In fact, for those who are adding on an extension to their additional policy, all it takes is a quick phone call to your existing insurer and you can be insured within a few minutes.

Pro: You Will Have Peace of Mind

Losing your engagement ring or wedding band would be (understandably) devastating. Why not save yourself any potential agony and insure the ring so that you can have peace of mind if the unthinkable happens? Even if you consider yourself responsible and you’ve never lost anything in your life, it’s still a good idea to be overly cautious with something so precious.

Con: Insurance Companies Can Sneak Things into the Fine Print

When you are securing insurance for your ring, you have to be very cautious and read all of the fine print to ensure that you completely understand what your policy covers and what it doesn’t. Some insurance companies will limit where you can shop for a replacement or will provide you with a lot of obstacles if the ring has simply vanished. To make sure that you are completely protected in the way that you expect, ask your insurance agent questions up front so that you aren’t surprised later when it’s too late.

Con: Some Insurance Companies Have a Maximum Limit

If you spent quite a bundle on your ring or you already have jewelry that is insured through your current insurance company, it’s possible to hit a ceiling on the maximum amount they will cover. If this is the case, you should consider adding an extra policy with a specialty jewelry insurer so that you know 100 percent that you are protected.

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