Your engagement ring and wedding bands are probably something that not only have a lot of sentimental value to you, but also a lot of financial value as well. Just as you would any other asset (like a car or home) you’ll want to ensure that your jewelry is well insured to protect that value. Like other insurance products, getting your ring insured can also be kind of confusing. But fear not, because we have the low down on the must-know items surrounding wedding ring insurance here.
1. Average Insurance Cost
One of the top questions on your mind regarding ring insurance is likely, “How much is this going to cost me?!” On average, the yearly cost of your jewelry insurance is one to two dollars per each hundred dollars that it would cost you to replace the ring outright. So, if your ring would cost $10,000 to replace, it would cost between $100-$200 a year to insure. There are other factors that play into this, such as the area you live and whether there are high rates of theft in that part of the country.
2. Lowering the Cost
One way to lower the cost of your insurance is to purchase and utilize a home vault or safe. Keeping your rings, appraisals, and other important paperwork in this vault and being able to provide proof of doing so to your insurance carrier can bring rates down.
3. What Types of Loss Are Covered?
Obviously, there are different ways for engagement and wedding rings to be lost or damaged. So, this leaves the question of what types of loss or damage is covered under insurance. If you cover your ring by adding additional homeowners or renters insurance measures to your current policy, usually theft, damage, accidental loss and other issues such as fire, windstorm, or other natural disasters are covered. However, if your ring is stolen from somewhere outside of the home or if your ring suffers partial damage (like some stones falling out), then you will need additional coverage for those items. For these types of mishaps, more specialized insurance is recommended.
4. Getting an Appraisal
In order to correctly protect your ring with insurance, you need an adequate appraisal of how much it’s worth. Things like carat weight, stone cut, clarity, quantity of diamonds, setting, and metal type are all factors that contribute to the value of your ring. Most insurance companies require an appraisal for pieces worth over $5,000 whereas an invoice or receipt for items less than that will usually suffice. If your ring is a one-of-a-kind piece or a passed down family heirloom, you’ll definitely want to get an appraisal to provide to your insurance provider to state the value.
5. Insuring Multiple Pieces
Once you get engaged, you should insure your ring ASAP. Afterwards, once you purchase wedding bands for you and your future spouse, those can be added to your insurance. As you collect more jewelry pieces throughout your life, those can be added to the policy as well. Keep in mind that the premium will increase with each piece that’s added to the policy.
6. Important Questions to Ask
As you are working to choose an insurance method and provider for your jewelry, there are a few questions you’ll want to get clarification on. First, decipher what your choices will be surrounding repairs if your ring becomes damaged. Some insurance policies will allow you to use a repair shop or jeweler of your choosing whereas others have a more limited scope. You should ask the same question surrounding a potential replacement to understand what that process would be like and what your options are.
Another question to ask is how you would go about updating or changing your insurance if you were to move to a different home or state. Finally, be sure to ask how to maintain your insurance going forward and ensure you understand how to keep your coverage current.
Overall, make sure you have a firm understanding on the fine print of the insurance policy you choose to ensure that all the boxes are checked on having the best coverage you can for these precious pieces.