For many young men, the engagement ring is one of the first large purchases made. Jewelry that is inherited from past generations or even newly purchased additions to a jewelry collection may be irreplaceable. These are just a few examples where jewelry insurance is an important avenue to consider in order to protect these items. For any couple or individual with jewelry that has high material or sentimental value, an insurance policy is simply a way of honoring not just their financial value but what they represent.
There are a few ways to insure your engagement ring, wedding ring, or other valuable jewelry. Ring insurance can be purchased as an extension (also called a "rider") for your renters' or homeowners' policy. While renters and homeowners policies are designed to cover the stuff in the home, they only cover up to a certain dollar value, which will most likely not cover a diamond ring. When you shop for a "ring rider" policy, make sure to read the fine print: A good policy will cover every potentially ring-threatening situation from theft to damage to accidentally dropping it in the garbage disposal. Another option is to insure your ring through a company that specializes in jewelry insurance or through the jeweler directly, which might offer more coverage than a standard homeowners' policy.
Another means for insuring valuables is to schedule them by listing them separately on your current homeowner’s policy. The advantage of scheduling an item is that no deductible applies if you have to put in a claim. Blanket coverage is a good option for those who have a collection of less expensive pieces. A blanket policy sets a coverage amount at say $25,000 for the entire collection and doesn’t require you to estimate the value of each item.
Whether you choose to purchase a rider policy or insure your ring through a separate company, you'll need to provide your receipts, as well as an appraisal from a certified gemologist for rings older than three years. You want to go to an independent appraiser, not someone who offers to buy the piece from you, who might lowball the value.
The average cost to insure your ring is $1 to $2 for every $100 that it would cost to replace. So, for example, if your ring would cost $9,000 to replace, you might expect to pay between $90 and $180 per year to insure it -- or slightly more in cities where the risk of theft is higher.
Always keep a current an inventory of your jewelry, and assess your policy each year to account for new additions or inflation. For jewelry that is not worn everyday, it is recommended to keep these items in a safe deposit box or home safe, for an extra level of protection.
Purchasing or increasing insurance policies to cover wedding rings or heirloom jewelry is an important step to ensure that those sentimental pieces are adequately protected from both natural elements such as house fires and floods to human error such as loss or damage.