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Do You Need Ring Insurance?

by David Weliver

When you are choosing an engagement ring for your significant other, there are a whole lot of factors to consider. You have to choose the setting, the stone, and so much more. Yes, choosing an engagement ring, or really any ring of any kind, can be extremely stressful. However, what many people don’t consider here is what happens if the ring gets lost.

Yes, engagement rings do get lost, they can get damaged, and yes, they can get stolen too. For this reason, you might want to consider getting some kind of protection for your ring, and here we are talking about insurance. Yes, there is such a thing as ring insurance, otherwise known as engagement ring insurance.

Now, this is a relatively new thing, as it has not been around for a very long time, although it is quickly growing in popularity. People are slowly recognizing that because engagement rings can be so valuable, that having an actual insurance plan for them may be beneficial in the event that they are lost or stolen.

After all, engagement rings can cost thousands of dollars, so it would seem to make sense that insuring them is a good idea. So, do you need ring insurance? Well, there are a few different things that you want to consider when choosing whether or not to get ring insurance for your engagement ring.

Let’s figure out whether getting ring insurance is a good idea for you or not. Right now, we are going to cover all of the most important aspects you need to be aware of when considering ring insurance for an engagement ring.

What is Engagement Ring Insurance?

So just to be clear, if you get engagement ring insurance, this is a type of insurance or contract that helps to protect you from any kind of financial repercussions in the event of damage, theft, or physical loss.

Insurance policies usually extend to all types of jewelry items that are submitted under the coverage scope of the insurance plan, and if damage, theft, or physical loss occurs, the piece of jewelry will be subject to cost reimbursement, replacement, or repair.

In other words, if you get engagement ring insurance, if you lose or damage the ring, you may be able to get the cost back, get it repaired, or get the full replacement.

Obviously, if you are afraid of damaging or losing the ring, or you are afraid of it getting stolen, then getting engagement ring insurance might be a good idea. With that being said, whether or not you want to get engagement ring insurance is going to depend on a variety of factors, such as the ones that we are going to discuss below.

How Much Does Ring Insurance Cost?

One thing that you probably want to know is how much engagement ring insurance is going to cost you. Well, for the most part, you can expect ring insurance to cost you around 2% of the ring’s total value in insurance premiums per year.

Therefore, if you have an engagement ring that is worth $10,000, you can expect to pay up to $200 every year in insurance premiums.

In terms of the overall cost, this is quite affordable. If you consider the fact that you might not be able to replace the engagement ring due to your own financial restrictions, paying just a few hundred dollars each year for insurance doesn’t seem all that expensive.

Do You Need Ring Insurance

How Much is Your Engagement Ring Worth?

When deciding whether or not to get engagement ring insurance for your engagement ring, one of the main considerations that you always need to keep in mind is how much it is actually worth. Keep in mind an engagement brings a promise that you and somebody else have made with each other and is probably going to be one of the more expensive pieces of jewelry that you have in your possession.

That said, you always want to consider how much monetary value the ring has compared to the sentimental value of it. The simple reality is that engagement ring insurance is going to cover the dollar value of the ring, but of course, there is not any kind of insurance plan out there that is going to cover the sentimental value of it.

A ring can have a whole lot of sentimental meaning for you without actually having much monetary value. Therefore, you need to consider how sentimental the ring is to you, versus the monetary cost of it. The simple reality is that an insurance plan isn’t going to replace that emotion that you feel with a ring, especially if it is something like your great-grandmother’s engagement ring.

So, if the ring has a whole lot of monetary value and is worth thousands and thousands of dollars, then yes, getting it insured with engagement ring insurance is probably a good idea. However, if the engagement ring doesn’t have much financial value, and is more valuable on a sentimental front, than getting insurance is probably not the best idea, because insurance can’t cover that sentimental value. It might just not be worth it.

What About Your Homeowners’ Insurance?

The vast majority of renters’ and homeowners’ insurance policies do offer some kind of personal property coverage. This doesn’t just apply to the furniture and other belongings in your home, but also to items like jewelry, and this is the case even if you aren’t home.

So, related to the above point, if your ring is fairly inexpensive and has more sentimental value than it does monetary value, then the insurance coverage provided by either your renters’ insurance or homeowners’ insurance might be enough for you.

Here, you would just consider it as a deductible that you would apply to a personal property claim, because you don’t want it taking away from the replacement value.

With that being said, if that piece of jewelry you have is extremely valuable, then relying on homeowners’ insurance alone is probably not good enough. The reason for this is because you are usually always going to run into claim limits on high value items like jewelry.

This limit may be as low as a $1000, depending on the plan that you have. Therefore, for instance, if you have a ring that is worth $20,000, but only a $5000 limit on jewelry, then you will lose that $15,000 difference. Once again, it really all depends on how valuable that ring is.

One thing that you need to keep in mind is that if you file a jewelry claim on your homeowners’ insurance, it may very well affect the insurance plan as a whole. In other words, the premium for your homeowner insurance could drastically increase due to actual reclaim.

Think About Personal Property Insurance

If you are planning on getting some kind of insurance for your engagement ring, getting some regular personal property insurance can be a good idea. This is because personal property insurance tends to be cheaper than other types of insurance.

For instance, if you are wondering what the cost of an insurance plan for your engagement ring is going to be, on average, you can expect to spend up to 2% on the piece’s value per year.

Therefore, if you have an engagement ring that is worth $5000, you would likely end up paying somewhere around $100 per year in insurance premiums. However, there are certain factors to consider. If you live in an area that has very high crime and theft rates, you may be paying higher premiums.

With that being said, if you consider the fact that replacing your engagement ring could cost you tens of thousands of dollars, paying a few dollars every month for an insurance premium seems like a pretty good idea.

Can You Afford to Replace the Ring?

One of the most important considerations to keep in mind is if you can afford to replace the ring if it were stolen or lost. This is also something that you need to consider when you are considering whether or not to get the extended warranty or supplemental insurance. With that being said, the rule that most people follow is that you should ensure whatever you can’t afford to replace.

For instance, if your wedding ring costs $1000 and you can easily replace that, insuring it doesn’t really make much sense. However, if you have a $20,000 engagement ring, and you only make $40,000 per year, then getting insurance for it is probably a good idea. The bottom line here is that if you can’t afford to easily replace the engagement ring, then you should probably get it insured.

Do You Need Ring Insurance

Getting Engagement Ring Insurance – Getting an Insurance Provider

Now that you have decided whether or not to get ring insurance for your engagement ring, it is time to cover the actual policy.

First and foremost, you want to get yourself a policy that is going to cover you on all fronts, whether your primary stone comes loose, you lose the ring, it slips off your hand, or it gets stolen. Then you also want to consider whether or not you want to get an insurance plan where the insurer imposes a deductible on.

When you are choosing an insurance plan for your engagement ring, there are plenty of questions that you need to ask yourself.

You need to consider if you can choose who repairs the ring if it is damaged, if you are going to get a cash payout or a replacement, if you can purchase a new ring, where you can purchase a new ring, what is going to happen if you can’t find a suitable replacement, and how you are going to have to prove that the ring is gone before you can make a claim.

You also need to consider if there are circumstances that aren’t covered, if you are going to be insured if this happens when you are out of the country, if you are insured for damage, or just theft and loss, if the policy will be adjusted accordingly due to inflation, and so on and so forth.

As you can see, there are plenty of considerations to keep in mind when choosing an insurance plan for your engagement ring. What you definitely want to do before choosing any kind of insurance plan for your engagement ring is to get the ring appraised. Then, the type of insurance plan that you get for your engagement ring is going to depend on how valuable it is.

If your ring has a higher value, for example, over $5000, an insurance provider is probably going to require you to get an appraisal. Just make sure that the person you get to appraise your ring has the proper credentials. For insurance purposes, you will want to reappraise the ring every few years.

Before you get it appraised, however, you want to get a grading report or diamond certificate. These are used to evaluate the carat weight, clarity, cut, and color of the diamond, important information that you will need for your insurance claim if the diamond or engagement ring is ever stolen.

Do You Need Ring Insurance – Final Thoughts

The bottom line is that if your engagement ring has great monetary value, you can’t easily replace it on your own, and its value is not covered by your other forms of insurance, then getting some kind of engagement ring insurance is a probably a good idea.

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