When you finally find that gem of a person you want to spend the rest of your life with, getting a new gem to cement your attachment can be the perfect next step. But should you insure your engagement ring (sometimes called jewelry insurance)? We have created this complete guide to help you decide for yourself.
Spoiler: If you’re buying a Michael Scott-sized diamond ring for the special “Holly” in your life, you may want to insure the ring.
What is engagement ring insurance?
No matter how it sounds, engagement ring insurance is a policy to protect your engagement ring. If your ring is lost, stolen or damaged, an insurance policy will help cover the cost of repairing or replacing it.
You can also add other jewelry to your engagement ring insurance policy. Keep in mind, however, that this will increase the value of your premium.
How much does engagement ring insurance cost?
Engagement ring insurance typically costs between 1% and 2% of the value of the ring. So, for example, if your ring is worth $3,000, you can insure it for $30 to $60 a year. If you’re looking for a $10,000 ring, insurance will cost $100 to $200 a year.
The average engagement ring costs around $6,000, according to The Knot 2021 Jewelry and Engagement Study, meaning the average person can expect to pay between $60 and $120 a year to insure their ring.
But, as always, how much you should spend on an engagement ring is up to you.
Read more: How much to spend on an engagement ring?
Who pays for wedding ring insurance, me or my partner?
Short answer: whoever owns the ring has to pay for the insurance. If you’re still clinging to him because you haven’t asked the question yet, you need to cover him up. But once the ring is on your significant other’s finger, they must insure it.
And here’s why: if the ring is insured in your name, but it slipped off your partner’s finger or was stolen from his apartment, it won’t be covered by your insurance because it happened while he had the ring.
The good news is that if you live together, you can easily add another person to your policy as an additional insured person, even if you are not married. As soon as you tie the knot, both people automatically fall under the same policy, because you are considered one.
What does engagement ring insurance cover?
No two engagement ring insurance policies are the same, but in general engagement ring insurance covers the amount of money you will need to replace or repair the ring if it is lost, stolen or damaged.
The word “damaged” is very important here. If you wear your wedding ring every day, damage is bound to happen. You might lose a stone while you sleep or work out at the gym, your band might crack or break due to normal wear and tear, or your entire ring might break in half when you play tug of war with your dog in the park.
A policy that only covers theft or loss is not worth it. Real life happens, and while it’s entirely possible to lose your ring on vacation or have it stolen, the damage may not be yours. 1 culprit to watch out for.
Remember: read the fine print before buying. You will want to know which situations are covered and which are not. Here are two points in small print that you should pay particular attention to:
1. Make sure your policy covers you when traveling abroad
Some engagement ring policies will not pay off if you lose, break, or have your ring stolen while traveling abroad. (Shocking, I know.)
Before you sign the dotted line, make sure your policy covers you while traveling abroad, especially if you travel frequently.
2. Make sure your policy is insured against damage
Depending on your policy, your insurance may only cover you if your ring is lost or stolen. Some insurers don’t offer damage protection, so if your diamond falls out or your bracelet breaks, you’re on your own.
Consider which situations might affect you the most and find an engagement ring policy that covers those situations. You may pay more money for certain additional protections, but the peace of mind may be worth it if your ring cannot be easily replaced.
How does wedding ring insurance work?
Engagement ring insurance usually works like this:
- You buy an engagement ring insurance policy.
- You pay monthly or annual premiums.
- You file a claim with the insurance company if your ring is lost, stolen or damaged.
- Your insurance company works with you to repair or replace the ring. (You can also get paid for the cost of the ring if you don’t want to replace it).
Some wedding ring insurance policies are deductible. Others don’t. If you want a cheaper monthly premium, you can opt for a deductible policy. If you want your insurance to cover everything in full, you can opt for a no-deductible policy knowing that you can pay a little more per month for it.
Who Should Insure an Engagement Ring?
If you’re still thinking about wedding ring insurance, let me help clear things up for you. Engagement ring insurance may be right for you if…
- You couldn’t afford to replace your wedding ring if it was lost, stolen or damaged.
- This is a priceless relic.
- You are worried about the stones falling out or the strap breaking.
- You hate the idea of wearing your ring in public for fear of losing or breaking it.
- You are financing the ring and you still have years to pay off.
Read more: How to finance an engagement ring
Who Shouldn’t Insure an Engagement Ring?
On the other hand, you may be missing out on engagement ring insurance if…
- You can easily replace your wedding ring if it has been lost, stolen or damaged.
- The ring has little sentimental value.
- Your ring was inexpensive and would be fully covered by your home or renter’s insurance if it were lost or stolen.
- You are not worried about breaking the ring or losing stones.
How to insure an engagement ring
If you’ve decided that engagement ring insurance is right for you, you’ll want to get the policy as soon as you receive the ring—perhaps even before you leave the store (or deliver it if you’re buying online)!
Read more: How to buy an engagement ring online
Once you’ve found the perfect ring, it’s time to take out your insurance policy.
To do this, I recommend asking your current homeowners or renter’s insurance companies if they offer jewelry insurance. If so, your insurance agent can add it to your policy and you can be sure that your ring is protected.
Be aware, however, that most standard homeowner or renter insurance policies limit the amount they will reimburse you for jewelry and do not cover scenarios such as mysterious disappearances or unexplained losses.
For example, your renter’s insurance policy can only cover up to $1,500 for jewelry. It may also have a clause stating that it must be lost or stolen due to certain “perils” (such as theft or natural disaster) to be eligible for a refund. This means that if your ring is worth more than $1,500, or the ring slips off your finger while running errands, you won’t be fully protected.
TL;DR? If you want your ring to be fully insured, you will most likely need a separate rider or engagement ring insurance policy.
If your insurer not If you have a jewelry-related policy, you must collect many quotes from different insurance companies in the insurance market. From there, you can decide which policy is right for you and apply for coverage.
Read more: What does homeowners insurance actually cover?
What documents do I need to insure an engagement ring?
If you’ve just bought a ring, a receipt should be all you need to prove its value and secure insurance coverage. If the ring is a family heirloom or has not been purchased recently, you will need to have it appraised by a certified jeweler.
Where to insure an engagement ring
You have two main engagement ring insurance options:
- Add it as an add-on to your current homeowner/rental insurance policy.
- Get a separate engagement ring insurance policy.
The easiest way is the first option (add it to your existing home or renter insurance policy).
One of the companies that offer one of the best extra insurance for engagement rings is Lemonade. With Lemonade, you add your engagement ring as an “extra cover” to your existing policy. There is no deductible if you need to file a claim and it covers just about everything, including accidental damage and accidental loss.
According to Lemonade, the only things it doesn’t cover are normal wear and tear and damage caused by war/nuclear fallout (I hope you and your shiny ring never experience it).
What is the process for filing an engagement ring insurance claim?
You typically follow these steps when filing an insurance claim for an engagement ring:
- You apply online or by phone.
- The insurance company will contact you for more information.
- If the ring is beyond repair, you decide whether you want a refund or a replacement.
- The insurance company will settle your claims.
- You get a repaired ring, a replacement, or money, depending on what you choose in the third step.
When you decide to get married, be sure to weigh the pros and cons to see if engagement ring insurance is right for you.
If you don’t like a big shiny ring with a high price tag, you can just skip it.
If you’re just not sure, you can always ask the price to find out how much it will cost and then make your decision from there.
Featured Image: Atsushi Hirao/Shutterstock.com