Engagement Ring Insurance – Wedding Ring Insurance

In our part one of this article, “Jewellery Insurance – Diamond Ring insurance” , we discussed what is Jewellery Insurance and what does it typically cover. In today’s topic of “Engagement Ring Insurance – Wedding Ring Insurance”, we will continue on from where we left. You will better understand how why you need an engagement ring insurance, how does engagement ring insurance works, what is the cost and what are the purchase questions you should ask to safeguard your asset. Take note that engagement ring insurance and wedding ring insurance are designed to serve almost the same purpose. These policies provide almost the same type of cover in nature. As such, the terms “Engagement Ring Insurance” and “Wedding Ring Insurance” has been used interchangeably throughout this article. So, let’s begin

Who Needs Engagement Ring Insurance?

It can be anyone but usually it will be couples (obviously) so long as they have jewelry that is pricey or has sentimental value. If your engagement ring or your wedding ring or any other Jewellery that is important you can be insured. Does not matter how much you bought it for, you could have bought your jewel for $1000 or $10,000, covering it with Engagement Ring insurance is important. With an engagement ring insurance, you are not only honoring its financial value but what they represent to you sentimentally. Yes, we can never replace the sentiments, but the engagement ring insurance can help you get your ring replaced if it was covered when you lost it in your house or outside in travels.

How Engagement Ring Insurance Works?

Usually this insurance will help you pay the cost of replacement in the event the ring was stolen and, in some cases, lost or damaged. During the purchase of Engagement ring insurance or Jewellery insurance, you will be asked to produce receipts of purchase. You can also be asked to produce an appraisal, that you can get it done for a small fee from a certified gemologist.

Take note, most Jewellery insurance insures your Jewellery from loss or damage at a particular risk location. For example, it will insure your ring that you have placed it in your house. In the event, the loss of the ring takes place in your mother in law’s house, you can be denied a payout. You have lost it not in an insured location. This being the case, most engagement ring insurance providers allows you to add a “rider” that protects your asset not only in your house, but also when you are in travels. I


How much does Engagement Ring Insurance cost?

The cost of engagement ring premium depends on few factors. Risk location is the first consideration. If you are living in an area prone to plenty of house break in and high theft rate, chances are your premiums will be loaded. Loaded here implies, adding additional cost to the usual premium rate. The type or dwelling also plays a part. If you are living in a private apartment protected by security personal and security devices, your premiums can be lower. Finally, your claim experience can also be a factor. If you have made frequent past claims, chances are, your premiums can be loaded or denied in full. Generally, most engagement ring insurance premium will cost you around 1-2% of your jewelry’s value. For example, if the cost of your engagement ring was $2000, you will be asked to pay approximately $20 annually.
Some insurers will have deductible. In mean, for example, every $1000 of claim, 20% can be a deductible. It means you will be paid $800. Also, as mentioned earlier, you should consider comprehensive wedding ring insurance. It will cover your ring even when you are moving around from place to place. It’s a tiny investment to protect something priceless.

Now that you know what the factors and the costs are of insuring your engagement ring, let’s look at some of the questions that you need to ask.

Engagement Ring Insurance – Wedding Ring Insurance 2

Wedding Ring Insurance Questions

  • Your insurer has many wedding ring insurance plans? Ask him what are the differences between the plans.
  • Are there any deductibles in your wedding ring insurance plans? If so, how much and can you cover the deductible cost with an additional rider?
  • Does your wedding ring insurance plan cover your jewel when you are on the move or is it tied to loss or even occurring at a particular address?
  • Where can you repair your ring or get it replaced? Usually, insurers will have authorized companies who can do this for you. Ensure these companies are reputable, big and operate near your location.
  • Ask your agent what does it cover and will not cover? For example, some engagement ring insurance will cover theft and not misplaced items. Some will cover loose stones and other will not. So, be very clear with the answers.
  • Are the any pre-requisites on the place where you store your ring? For example, some insurers based the premium rates based on the type of safe you store in. In the event, you have changed your safe brand or model, do you need to inform your insurer?

Hassel free claims from Engagement Ring Insurance?

Here are some additional tips that can help you protect your jewel and also help with speedier claims if the event arises.

  1. Keep proof of how much you paid for your wedding ring. Keep ALL original receipts in a safe location. As some receipt ink runs white over time, it is also a good idea to capture a photo image of the original receipts.
  1. What is the true value of your engagement ring? Inflated jewel value just creates high premiums and disputes if you ever make a claim. Get an appraisal done by a certified gemologist. Inaccurate appraisal can mean big premiums and financial loss. Make sure you find a reputable and honest appraiser. Be uncompromising in your search.
  1. Diamond, gold and other precious metal value fluctuates over time. In current market, Gold cost you 3 times more at least as compared to 10 years ago. As such, get the latest appraisals and current value of your jewel.
  1. What is the document needed in the event of a claim? Valuation report? Home security setup report? Police reports? What else do they need?
  2. If you are insuring diamonds and other precious stone, get its certification and grading from independent laboratory. Gemological Institute of America (GIA), is one of the most respectable place you can start from.
  3. DO NOT compromise on any important feature. Remember, low-cost of premiums can also mean lower coverage or sum insured. Scrutinize the policy contract of your wedding ring insurance policy.

Get your wedding ring insurance / engagement ring insurance

We hope this two-part series of our article was of help and knowledge to you. We hope it helps you make an informed decision on engagement ring insurance. Do not stop here, do more research and talk to more agents before you sign up for your engagement ring insurance.