Congratulations! You’re newly engaged or married, with some serious new sparkle on your finger.
Getting ring insurance probably doesn’t sound like the most exciting to-do right about now, but it’s pretty important.
“An engagement ring is typically the second-largest consumer purchase in someone’s life, behind an automobile,” says Dustin Lemick, founder and CEO of jewelry appraisal and insurance service BriteCo.
It’s true. The average price millennials paid for engagement rings was $5,000, according to WeddingWire’s 2019 Newlywed Report.
That’s a lot to pay for a ring even as a one-time purchase, but it can hurt to pay even more to replace or repair a ring. “If rings are not insured, a couple’s not necessarily in a financial position to replace or repair it without a ton of sacrifices being made,” Lemick says.
If your ring gets lost, damaged, or stolen, engagement ring insurance can potentially save the day. Let’s take a look at how to insure engagement rings and wedding bands.
What is Engagement Ring Insurance?
Engagement ring insurance is like other insurance: It protects you financially against a potentially large cost. In this case, that’s the cost of repairing a damaged ring or replacing it if it gets lost or stolen.
Who needs ring insurance?
It can be a smart move to insure your engagement ring, but you might wonder if it’s worth the cost. Do you really need engagement ring insurance? Here are some signs it could be a good idea:
- You’d want to replace the engagement or wedding ring if it were lost, damaged, or stolen.
- The ring would cost more than $1,500 to replace. In this case, the ring would be unlikely to be fully covered by an existing homeowners or renters insurance policy. Without extra insurance, you’d be stuck with the costs to replace or repair a ring.
- You’re more likely to damage or lose a ring. For example, a partner might be in a profession that can be rough on rings, or perhaps just more forgetful than average.
Of course, not everyone fits into the above categories and others might place little meaning in a ring and not feel attached to it. Couples who wouldn’t be in a rush to replace a ring may have less of a need for insurance.
Learn More: How to Buy an Engagement Ring
For most people, however, engagement rings and wedding bands are among the most significant symbols of love — and the most valuable. If you’re in this group, purchasing ring insurance can be a smart move to protect your ring and could make it easier and more affordable to replace it if needed.
When to buy ring insurance
It’s best to get insurance as soon as you buy the engagement ring — even before popping the question! Getting engagement ring insurance in place helps ensure you’re protected against mishaps or misfortunes from the start. “This type of insurance is easy to put off,” says Lemick, unlike homeowners or car insurance that’s often required. “But if a loss happens, it can be painful.”
Costs of engagement and wedding ring insurance
The cost of engagement ring insurance and other jewelry insurance isn’t too steep. Generally, you’ll pay about 1-2% of the value of the ring in yearly premiums. So if you have a $5,000 engagement ring, for example, you could expect to pay $50 to $100 per year for ring insurance.
How to Insure a Ring
If you’ve bought other types of insurance before, shopping for engagement ring insurance is similar. But there are specific steps you might want to take when insuring a ring. Here are tips on how to insure a ring and find the coverage that you need.
1. Find out what your insurance already covers
If you already have renters or homeowners insurance, you might already have some coverage for items you own — including jewelry like wedding or engagement rings.
In fact, I made a claim under my standard renters insurance policy to get $1,500 toward replacing a stolen ring. It wasn’t the full value of the ring, as I didn’t have additional ring insurance. But it definitely helped take the sting out of the misfortune of having a treasured possession stolen.
Check with your insurer to see what coverage is included in your policy. Most insurers will pay around $1,000 to $2,000 toward replacing a ring, according to the Insurance Information Institute.
Ask, too, about which causes of loss are covered. Most homeowners or renters insurance only provides coverage for loss due to theft or fire — not accidental loss or disappearance of the ring.
2. Compare engagement ring insurance policies
If you want more coverage than your existing policies offer, you can look into these two options. The first is to add a rider or floater policy to your existing renters or homeowners insurance. Purchasing this additional coverage will allow you to insure the full value of your wedding or engagement rings with no deductible. It also expands the causes of loss or damage it will cover to include “mysterious disappearance” or accidental losses.
Another option is to purchase a standalone jewelry insurance policy for a ring. This engagement ring insurance will be separate from other policies you may have and offers similar coverage.
In addition to weighing the types of insurance you can get, compare specific insurance rates and offers, too. Lemick suggests comparing perils or causes of damage or loss that are covered, the coverage limits, and any exclusions. Compare premiums and deductibles, as well, to ensure you’re getting the coverage you need while minimizing out-of-pocket costs.
3. Prove your engagement ring’s value
Insurers will require proof of the value of your ring to cover it. Providing this could be as simple as printing off your receipt – if your rings were newly purchased.
If you have an antique or heirloom ring, you’ll need to get it appraised to assign it a value for insurance coverage. Most insurers can recommend an appraiser or gemologist to provide this service.
For diamond ring insurance, it’s also a good idea to get a diamond evaluation or grading report (or a copy of it if your stone is already graded). The stone will likely be the most valuable and expensive part of your ring, and quality can vary significantly from diamond to diamond. Having a diamond grading report can make it easier to prove the quality of this stone so you can keep it properly insured.
4. Choose a policy — and read the fine print
Once you’ve compared policies and provided proof of your ring’s value, you can choose a policy. Make sure it’s one that is both affordable and provides the amount and types of coverage you want from your engagement ring insurance.
Carefully review the engagement ring policy agreement, including the fine print, to fully understand the terms before you agree to them. Take note of when you’re entitled to make a claim against your ring insurance, too.
Keep copies of all relevant documents related to your ring in a safe place, including your original receipt or appraisal, diamond certificate, and policy agreement. Preserve these and keep them accessible in case you need to file a claim.
The Bottom Line on Ring Insurance
Engaged couples have enough to manage with planning a wedding and building a foundation for their future marriage. Getting ring insurance can feel like just one more task on your to-do list, but as Lemick points out, “Hindsight is 20-20, and “it’s pretty inexpensive coverage compared to what you could pay with a loss,” Lemick adds.
You don’t want to find yourself wishing you had insured your ring when you had a chance. It’s worth the time to decide on the best way to protect and insure your engagement or wedding rings — and your peace of mind.