What is an Engagement Ring Insurance and Why You Should Get One

An engagement ring is an investment for a lifetime. Its value is worth more than its price. You might think that engagement ring insurance is just an additional burden you have to pay for when you purchase an engagement ring.

But, there are more benefits to engagement ring insurance than you think. If you want to be prepared for anything that can happen after your joyful and memorable milestone, you should seriously consider protecting the value of your engagement ring by insuring it.

Shira Diamonds is the only TRUE diamond wholesaler open to the public. We have all types of loose diamonds, diamond studs, and custom diamond engagement rings for sale.

What is Engagement Ring Insurance?

Like other types of insurance, engagement ring insurance aims to protect the value of your engagement ring should it be lost, damaged, or stolen. It is a contract that agrees to cover the risk management of your engagement ring.

Engagement ring insurance expert Tyler Krowiorz puts it this way:

“If you think you would be devastated by the sentimental loss, afraid to wear other uninsured jewelry, or unable to cover the cost of replacing the item, it would be wise to make sure your engagement or wedding ring is covered by insurance.”

How Does Engagement Ring Insurance Work?

You may think that your homeowners’ insurance policy is enough to cover the cost of your engagement ring in the event that it gets lost, damaged, or stolen. However, getting engagement ring insurance will provide you a more expansive coverage. What are the steps in obtaining engagement ring insurance?

1. The ring will be appraised by a certified and licensed gemologist. You will be provided documentation of the value of the ring so that you will insure it. Either this or a receipt will be required. You can start the process of engagement ring insurance before the ring’s appraisal is completed.
2. Know the coverage of your current homeowners or renters policy by asking these questions:
   • What does the policy cover? Does it include theft, mysterious disappearance, damage, or loss due to a disaster?
   • What are the replacement terms when a claim is filed? Will a check be sent, or will the ring be replaced with another ring similar or the same?
   • What is required as evidence or proof that the ring is lost?
   • Will the total value of the ring be covered?
3. When something happens to the ring that is included in the policy for which it can be covered with insurance, you will file a claim with the insurance company.
4. Depending on the policy and the conditions stated by the insurance company, you may receive a check to cover the value of the engagement ring.

Other engagement ring insurance also includes covering the cost of repair for damaged engagement rings that can still be repaired. Replacements can also be an option. However, these two processes can be more complicated because they require more paperwork.

Who Needs Ring Insurance?

It can be overwhelming at first to consider buying insurance for your engagement ring. The additional cost can be a financial burden, especially when you are not ready for it. But, when you think of the value that will be lost when your engagement ring gets stolen, damaged, or lost, the burden can be bigger-financially and emotionally.

Here are some reasons getting engagement ring insurance can be worth considering:

• You value your engagement ring so much that you would want it to be replaced if it gets stolen, lost, or damaged.
• It is more likely that you will lose your engagement ring because of valuable things you’ve also lost in the past.
• It can cost a lot of money to get an engagement ring replaced when lost, stolen, or damaged.
• Your engagement ring has precious stones, especially a piece of diamond or diamond stones, with a minimal cost of $3,500.

One of the best signs that you need engagement ring insurance is attachment, which is a sentimental value that no monetary amount can replace. If your engagement ring is damaged, lost, or stolen, and you will do everything you can to have it replaced to keep the symbol of a cherished memory, it’s high time you purchase engagement ring insurance.

When Is the Best Time to Buy Engagement Ring Insurance?

Well, the best time to buy insurance for your engagement ring will be the time you buy your ring. This will ensure even if you lose the ring sometime between your time of purchase and the time it gets into the finger of your loved one, you will not worry about having it replaced. You will still be able to pop the question with an engagement ring!

Costs of Engagement Ring Insurance

Typically, you will have to pay around 1-2% of the value of the engagement ring in annual premiums. So, for example, if you purchase an engagement ring for $5,000, you will expect to pay $50 to $100 every year for insurance. However, this cost can vary depending on other factors that will have to be considered in computing the cost, like your location and the size of your deductible.

Finding the Right Engagement Ring Insurance Provider

How do you know which ring insurance provider you will go with? There are a hundred engagement ring insurance providers out there and choosing the right one considers serious thought.

According to MyWalletJoy, consider asking these questions when choosing your insurance provider:

• Does ring insurance cover stolen and lost rings?
• Does it cover all types of damage?
• What is the coverage for a diamond or other precious stones that fall out?
• Does the coverage include loss, damage, or theft while traveling abroad?
• How will the ring be replaced?
• Will the reimbursement cover the full price of the engagement ring?
• Can I select the jeweler who will repair or replace the ring?
• What is the required paperwork for filing a claim?
• What happens when I cannot find a suitable replacement?
• What are circumstances that are not covered by the insurance?
• In the case of inflation, will the policy be adjusted?

It is crucial that you understand the engagement ring insurance policy very thoroughly. This will prevent further issues that may arise. When you get answers to these questions, you will have a better understanding of which insurance provider will be best to work with.

Also, make sure that you provide the most recent or updated appraisal of your engagement ring so that it will be protected for its full value.

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