Engagement Ring Insurance – Ultimate Guide

Engagement Ring Insurance – Ultimate Guide
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Having an auto insurance cover or a home / renter’s insurance is very common. We all have it. We have also heard celebrities insuring their body parts. Singers insure their voice, painters insure hands, dancers insure their legs. Wedding or engagement ring insurance is a new wave in the world of keeping your priced possessions safe. It may seem a little unromantic when we add paperwork to the most lovable moment in our lives. However, protecting something that precious just gives us peace of mind.

The good news is that insuring your engagement ring is not as hassle as it seems. With a little research and planning, your homeowners or renter’s insurance policy may help insure the wedding ring. You can also look at stand alone jewelry insurance providers.

What is a ring insurance ?

Engagement is one of the most memorable time in a couple’s life. Imagine your most cherished wedding ring getting lost or stolen. Nothing can bring in more grief. Most couple’s spend a fortune on their wedding rings. It is an investment – both financially and sentimentally. It’s a bond between two people. In order to keep this little symbol of love, you need to protect it or cover it with an insurance. If any eventuality occurs, you are compensated for the monetary damages.

Insurance of engagement ring is done in many ways.

a. Rider in renter’s / home owner’s policy

It can be purchased as a rider for you renter’s or homeowner’s policy. Homeowner policies covers the stuff at home but only up to certain value. Valuable items like jewellery, engagement rings are guaranteed through an insurance policy. However, most of these riders only cover a fraction of the total cost of the ring.

b. Jewellery insurance

Another popular is to insure wedding rings is through a company that specializes in jewellery insurance. These insurance companies cover the wedding ring for the full value. They provide a more comprehensive jewlery insurance in comparison to home owner’s rider policy. The cover extends beyond home.

Who needs ring insurance?

wedding-ring-insurance

The ring insurance can be done by any couple. Ring insurance policy is a way of respecting not only the monetary value, but also the sentiments behind it. The sentiment behind your engagement ring is priceless, but the rings themselves can be replaced—if they’re insured—in the event that something happens to them.

Why do I need an engagement ring insurance?

a. If its lost

We have heard many stories of engagement rings getting lost in a very strange way like finding their way into wash basin drain, in the swimming pool, in the gym locker, in the movie theater, when playing a sport. You need coverage on your ring in case its lost.

b. If its misplaced / disappeared

Sometimes we just happen to misplace it. However, with the right insurance policy, you wouldn’t have to worry about this. With the right engagement ring insurance, damage of any magnitude would not matter. If you misplaced your ring, the jewelers insurance got you covered.

c. If its damaged

At times, the ring is damaged due to an accident and is beyond repair. The ring insurace policy would take care of replacing it in such cases.

The proper insurance policy can assist in this financial loss.

d. It its stolen

People usually spend lot of money on their wedding as it has to a precious gift to their loved ones and this becomes the reason for easy theft. If its stolen and police is unable to trace the ring, the insurance company would replace it for you.

Average cost for ring insurance

The annual cost to insure a ring may be around 10% of the cost of the ring itself. In the laymen terms if your ring costs $ 10,000 to replace you have to pay between $100 to $ 200 per year to insure it.

Who should buy the coverage: The ring buyer Or The recipient?

The most perplexed question is who should insure the ring – the buyer or the recipient and the answer given by the insurance companies that it should be insure by the owner.

If the couple isn’t living together, then the person, who is currently holding onto the ring, whether on a finger or at home, is the person who should make sure it’s insured. It this case, it would be the buyer of the ring.

However, once the ring is handed over to the partner, it then comes in possession of the ring holder and the ownership changes. In this case, the insurance must be bought by the new owner.

How Is jewellery covered? Are there limits?

If you have a valuable jewellery like an engagement ring you buy a “floater “ or “endorsement”- essentially as an add –on –to your existing homeowners or renters policy called scheduled personal property coverage.

If you are planning to get your engagement ring insured, make sure you talk to the agent or insurance broker about your current personal property overage limits and what options you have to protect your investment, so you won’t have to wait at the wedding altar.

How Ring Insurance Works:

You are entitled to produce the original receipt along with a jewelry appraisal given by any Gemologist. And if you move after the wedding makes sure the ring rider follows you. Some people get the ring insurance at the bride’s house, but forget to add it to the policy for their new home when they move in together.

Questions to ask before you choose a ring policy

  • Does the insurance policy cover if the ring is lost accidentally or stolen?
  • How is the company going to replace the ring do they require you to purchase replacement through a specified jeweler?
  • How is the company going to document the quality and size of the ring?
  • Is the ring covered under full cost or only a part?
  • How will you have to prove if the ring is lost? (What if your ring slips while you are swimming)

Now you have a better understanding on the ring insurance policy. Make sure you take a cover for your priced possession.