Engagement Ring Insurance 101
We get it, the ring of your dreams is now securely on your finger and you're understandably over the moon. And because you're not letting it out of your sight, engagement ring insurance could be the last thing on your mind. Newsflash: it shouldn't be. After all, your sparkler is a serious investment, and it should be protected in the event of loss, damage, or theft.
A Jewelers Mutual survey found that 70% of households consider an engagement ring to be one of the most expensive items they own. If that sobering statistic isn't enough to spur you to action, we recommend you read on. Speaking to experts from three of the nation's top jewelry insurers, we've compiled an indispensable guide on the topic that answers the most common Qs and then some. Oh, and since wedding planning is now on your agenda, we should probably mention that you can ensure those, too.
Meet the Experts
Krystle Craycraft, Jewelers Mutual's Senior Vice President of Marketing: Founded in 1913 by a group of Wisconsin jewelers, Jewelers Mutual offers over 100 years of jewelry insurance expertise. The insurance company's strong financial position is reflected in their 37 consecutive ratings of "A+ Superior" from AM Best Company, as of December 2023.
Melissa Becker, Vice President of Lavalier Jewelry Insurance: Lavalier specializes in jewelry insurance, offering flexible coverage since 2011. Lavalier is part of Berkley Asset Protection, a W. R. Berkley Corporation member company whose insurance company members are rated A+ (Superior) Financial Size Category XV by A.M. Best Company.
Dustin Lemick, founder and CEO of BriteCo.: Created by third-generation jeweler Dustin Lemick, BriteCo. Is a direct-to-consumer, specialized jewelry insurance online platform. BriteCo's structure is what's known as a program administrator, meaning the company works with an AM Best A+ rated insurance carrier to underwrite policies and service policyholders.
What is Engagement Ring Insurance?
Engagement ring insurance refers to a specific policy that's designed to cover an engagement ring in the event it is lost, stolen, or damaged. "Some engagement ring insurance may also cover preventative maintenance such as tightening prongs for a diamond setting," Lemick says.
There are more than a few ways to insure your engagement ring. You can choose to purchase it as an extension (also called a "rider") for your renters or homeowners policy. While most renters and homeowners policies cover items inside your home, they only do so up to a certain dollar value. Expensive or sentimental items, like engagement rings, art, and even electronics, are guaranteed through scheduled personal property coverage—an insurance policy extension that covers specific items.
Another option is to insure your ring through a company that specializes in jewelry insurance, which might offer more coverage than a standard homeowners policy, like replacing a lost or stolen ring rather than paying a set amount of cash. For example, a jewelry insurance policy from Jewelers Mutual is a repair or replacement policy. "Instead of receiving a check and searching for a replacement on your own, our experts step in and work directly with your jeweler of choice to either replace your ring with the same kind and quality as the one that was lost or stolen or to repair a damaged piece," Craycraft says.
It's important to note that engagement ring insurance is not the same as a warranty for your ring. Warranties are meant to cover only defects in manufacturing such as imperfections in design, materials, or workmanship.
Does home or renters insurance cover engagement rings?
Some homeowners insurance policies do cover jewelry to some extent. In many cases, however, your coverage is limited by:
- Limitations or exclusions on situations covered
- Requirements to use jewelry replacement companies
- Needing several estimates before settling a claim
- Coverage value limits (leaving the rest of the replacement cost up to you)
"Plus, a jewelry claim could affect your insurance premium or even the status of your entire policy," says Craycraft. "That's why it's important to evaluate your insurance options. Call your homeowners or renters insurance and ask for the details of your jewelry coverage. Never just assume you're covered."
Why You Should Get Engagement Ring Insurance
Purchasing engagement ring insurance is a personal financial decision that only you can make. However, if you're upset at the mere thought of your engagement ring being lost or damaged, it's a good idea to spring for added protection. "You should be able to wear your ring without worry," Craycraft adds.
According to Becker, asking yourself a few simple questions should determine whether or not engagement ring insurance is right for you: Can you afford to replace the ring if it was lost? Would it be a financial burden to repair your ring if it were damaged? Are you a frequent traveler or a person who loses things often? Are you generally a worrier whose coverage would provide peace of mind? If you answered "yes" to any of these questions, you shouldn't hesitate about purchasing coverage.
How Much Does Engagement Ring Insurance Cost?
Engagement ring insurance is surprisingly affordable. A specialty jewelry insurance policy for a ring should cost about .5% to 2% of its appraised value. That means insurance for a $5,000 engagement ring would average about $50 a year. "The biggest cost variable depends on your location," Lemick adds.
How to Insure Your Engagement Ring
Much like for the engagement ring buying process, you'll want to do a fair amount of research to ensure you're comfortable with your purchase and feel confident you're getting the most value for your money. Your ring is unique—so too should be your engagement ring insurance policy.
1. Get your engagement ring appraised.
Simply put, a ring appraisal is a document that verifies the facts about the rings or rings you've purchased. A certified appraiser completes it and includes details about the characteristics of the ring, including its approximate monetary value.
2. Reach out to insurance companies for quotes.
Many insurance companies offer quotes online. You simply fill in your location as well as some basic details about your jewelry (the type, its appraised value). A quote will usually specify your deductible (what you have to pay before an insurance company will replace your item) as well your premium (the annual cost you pay to maintain insurance coverage).
3. Find out what's covered (and what's not).
What's covered and what's not varies depending on the insurer and the specific policy. Below, is a list of what is typically covered—as well as what's not. This is by no means exhaustive, so be sure to ask your policy provider for more specifics.
What is typically covered:
What is typically not covered:
- Civil authority, if your jewelry is confiscated by law enforcement.
- Deterioration or inherent vice, like a manufacturer's defect (this should be covered by a warranty)
- Intentional acts: purposely damaging or losing your jewelry
- Nuclear hazard: a fire resulting from a nuclear reaction
- Damage resulting from vermin, rodents, or insects
- Voluntary parting: selling your covered jewelry and having the check bounce
- War and military action
- Wear and tear
4. Request a sample policy.
Request a sample policy to better familiarize yourself with the specifics of what is and is not covered. It's important to keep in mind your actual policy may vary depending on your state and the underwriting company issuing your policy.
5. Evaluate the costs and compare your options.
Purchasing ring insurance is a personal financial decision only you can make. As such, it's never a bad idea to shop around to ensure you're getting the best deal possible. Compare quotes from several different insurance companies before you make up your mind. If a policy is more expensive, ask yourself if the cost is justified. Perhaps the coverage is more thorough? Does it have any other major pros that other policies don't? That should help you narrow it down, assuming you've already determined that purchasing ring insurance makes sense for your lifestyle and budget.
6. Read the fine print.
With any purchase, you should know exactly what you're getting when you ink your name on the dotted line. Read the fine print of your ring insurance policy—and don't be afraid to ask follow-up questions. Some additional things to consider: Will your ring need multiple appraisals over time? Will the value of your ring change over time?
Questions to Ask Before You Choose A Policy
- Whenever you insure something valuable, it's important to understand your policy thoroughly. Before you choose a policy, ask the following questions:
- What is specifically covered?
- What is specifically not covered?
- How does the claim process work?
- What happens if my ring is lost, stolen, or damaged?
- Will it be repaired or replaced with the same kind and quality as the original?
- Will I be able to choose your trusted jeweler?
- Will a claim impact your homeowners or renters' policy?
- Are there deductibles? If so, how much?
- Does the policy cover full replacement value based on my appraisal?
- Does the policy have a monthly pay option or a discount for paying a full year's premium?
- Where can I find real customer reviews of the insurance company and its customer service?
- Can I qualify for a policy premium discount if I store my jewelry in a safe?
Did you know personal jewelry insurance protects your ring from loss, damage, theft, and during worldwide travel and mysterious disappearances? Insure it. Wear it. Learn more at JewelersMutual.com.