Congratulations! You’re getting engaged! Some of life’s most exciting times are finally upon you. Engagement is truly a blessing, but also a significant commitment for many couples. All the more reason it is important you be educated on everything there is to know about engagement ring insurance.
There’s nothing quite like the sparkle of a new engagement ring on your finger, no matter the shape, size, cut and cost. The sentimental value and emotion behind your rings are sure to brighten your days for years to come.
So with something so valuable, both emotionally and monetarily, there’s a strong incentive to protect it.
That’s where engagement ring insurance comes into play.
When most people think insurance, they think car insurance, health insurance, and any other type of regular payment to protect yourself and your assets.
Engagement ring insurance works the same way, but with the added peace of mind that the representation of your special day is always safe.
We’re bringing you insider knowledge of how to insure your diamond the right way.
Engagement Ring Insurance Process: Step #1, The Appraisal
You can’t insure your diamond without knowing its value. This means getting an appraisal by a professional jeweler.
Always talk to your jeweler and ask specifically what the characteristics of a quality ring are and how to spot a lesser quality piece of jewelry prior to purchase.
Make sure the following points are assessed when the jeweler is appraising your engagement ring:
- Carat weight
- Cut
- Color
- Clarity
- Stone shape
- Band metal type
- Band karat
- Any identifying marks
- Features unique to your ring
It’s also important to compare your appraisal to other similar rings. If your appraisal is higher than the value of your ring, your engagement ring insurance will include a high monthly premium.
Rings with a center stone of half a carat or more need to take extra caution with appraisals.
Always have high-value rings graded by an independent gemological laboratory.
The Gemological Institute of America (GIA) is a highly respected organization we recommend for obtaining a diamond certificate and ring report.
Choosing Your Engagement Ring Insurance Provider
You have two different options when shopping for engagement ring insurance.
The first, “ring rider” insurance, is covered by your homeowners policy. It functions as an extension of your current policy and varies across providers,
Your second options is insuring through an independent party that specializes in ring insurance. The jeweler sometimes offers insurance policies during the ring purchasing process.
“Ring Rider” Insurance
Engagement ring insurance through your home owners policy is often the easiest route. Payments will add onto your existing policy, making the process hassle free.
Having done business with this insurance company before gives you leverage to get a better deal. Overall you’ll stand a better chance of negotiating better coverage due to your already mutual relationship.
Remember, this type of insurance revolves around your home. Newlyweds who change apartments or buy a new home will need to include “ring rider” insurance on their new policy.
Third Party Insurance
Insuring through a third party comes with less negotiating room, but often better coverage. These insurers specialize in exactly what you’re looking for, engagement ring insurance.
They’re likely to offer plans that cover everything from lost diamonds to your dog accidentally eating the ring.
Some jewelers offer third party insurance by partnering with jewelry insuring companies, including Adiamor. Working with these jeweler insurance providers can yield excellent coverage.
The Important Questions
Asking certain questions about your level of coverage and insurance protocols is paramount no matter which insurance avenue you choose. You want to make sure you know the details of the plan before signing the dotted line.
Questions to ask include:
- “Can you choose who repairs your ring?“
- “Does the company pay out a lump sum or replace your ring?“
- “Are you allowed to purchase your new ring?“
- “What substantiates proof of claim?“
- “What circumstances are covered?” (Theft, lost ring, lost diamond, scratched band, dog ate the ring, etc.)
- “What factors influence your rates?” (high crime areas, credit score)
Know your policy inside and out before signing any paperwork.
Average Insurance Costs
Engagement ring insurance costs on average $1 to $2 for every $100 your ring would cost to replace.
A ring that costs $10,000 to replace (appraised for $10,000) will cost around $100 to $200 dollars a year to insure.
Avoiding these rates isn’t likely, but structuring your personal payment plan is.
Like any other insurance, deductibles are offered with engagement ring insurance.
Higher deductibles mean you’re willing to pay more if your ring is stolen, but come with lower monthly premiums.
People living in low crime areas might opt for a high deductible to keep their monthly payments low. Assuming more risk when risk is lower will save you money in the long term.
However, those living in high crime neighborhoods or participating in activities that might damage the ring (scuba diving, certain professions etc.) might opt for a low deductible.
Reappraisal and Documentation
Jewelry is one of the few things that steadily appreciates in value over time.
Have your ring reappraised every few years to ensure your policy payout is large enough to compensate for your ring’s appreciation.
An outdated policy might result in receiving a ring or payout worth less than your current engagement ring.
Make sure to document all appraisals and report their results to your insurance company of choice. This protects your ring from payouts based on appraisals that no longer reflect your ring’s value.
Protecting the sentimental and monetary value of an engagement ring is an investment many people overlook.
Don’t make the mistake of foregoing engagement ring insurance and letting one of your life’s most cherished items just slip away with no recourse.
We’re firm believers that a diamond is worth more than what you’ve paid for it.
The act of giving another person something the Earth itself took billions of years to form proves devotion between two people.
We strive to allow individuals the opportunity to make their engagement about more than their ring.
If you’re in the market for an engagement ring that marks your love for your significant other, get in contact with us.
Our company specializes in not only selling rings, but also helping you pick out a gift that symbolizes commitment.
Diamonds are our business, and we’re happy to share our passion with anyone open to listening.
There’s more to the sparkling gems than meets the eye.
