A new engagement ring has a sparkle all of its own. Not only that, a ring represents a new period of life: hope, change, a fresh start, a marriage. So, with as much joy as there is when giving that special gift, there can also be caution about the tradition of big engagement rings. Diamonds are pretty, but an engagement ring is also a high-value item. So, how can you ensure that this special offering is preserved?
Engagement ring insurance can help you breathe easily: it offers replacement and repair costs if you lose your ring, have it stolen, or damage it. And at very reasonable premiums, it doesn’t cause eye-watering sticker shock. Once you have the basic information on what engagement ring insurance is, what to look for in an engagement ring policy, how much engagement ring insurance will cost, and six businesses offering great coverage, you’ll be shopping like a pro in an instant.
What Is Engagement Ring Insurance?
Engagement ring insurance, including diamond ring insurance, typically provides coverage to pay for the cost of repairing and replacing an engagement ring if it is lost, stolen or accidentally damaged. Like any insurance policy, you will need to pay a premium to get and keep coverage on your ring, then if a loss occurs resulting in a claim, you will advise your insurer by filing a claim. If your loss is approved, you will be asked to pay the deductible (if your policy has a deductible) and your insurer will pay to repair or replace your ring up to its appraised value.
Engagement Ring Insurance Cost
How much does engagement ring insurance cost? I couldn’t find an easy answer to that question, since the cost is relative to several factors. According to Jewelers Mutual, annual premiums usually end up costing around 1 per cent to 2 per cent of a ring’s value. In anticipation, I dive into a few review quotes – and the estimation seems to bear out. The price of no-if-lost coverage of a $5,000 engagement ring in San Diego, California, averaged at around 1.5 per cent of the ring cost, or $73.77 per year, after goodolicious sleuthing among several of the leading insurance providers.
But, what factors can end up influencing the cost to insure an engagement ring?
Ring value: The more it costs to replace the ring at a retail store, the higher the premium.
Location: Recently, insurance companies have begun to look at zip codes in setting rates because area theft rates impact the likelihood of filing a claim.
Deductible: Your insurer may give you a choice of a deductible amount. Do you want to pay a little bit more for your premium so that your deductible is less, or do you want to get a lower premium knowing you’ll need to pay more when you file a claim? (Lavalier Jewelry Insurance offers $0, $100, $250, $500 and $1,000 deductibles for its $5,000 in coverage. A $0 deductible plan costs $75 a year. A $1,000 deductible plan costs $61 a year.)
Discounts: Many insurers will shave a percentage off your premium for a variety of reasons: Jewellers Mutual will do so if you have a home security system, for example, or a home vault, or if your ring has an inscription that matches a Gemprint identification number.
How much does that cost? Jewellery insurance cost for an engagement ring can vary a bit between insurers, so shop around and gather quotes from the top jewellery insurance companies.
How to Insure an Engagement Ring
Insuring an engagement ring is incredibly easy, with dozens of competitors all just a few clicks away. You can shop around for quotes, apply and get approval within just a couple of minutes – but, if you put in a few extra minutes to ensure you have the top-tier coverage you need for your expensive bauble, it’s time well spent.
1. Get an Appraisal
First, ask for an appraisal, which is an itemised description of your ring, its features and value, created by a certified appraiser. (Not all insurers ask for appraisals upfront – but chances are good that you’ll need one if you have to file a claim, anyway, and it also ensures that you get the correctly valued coverage amount for your ring.
And if an insurer requires an appraisal in advance, that might be subject to additional stipulations. Lavalier, for example, requires appraisals dated within the previous year for all rings costing $5,000 or more. Read the fine-print stipulations such as the dollar-value threshold or time limit on an insurer’s appraisal requirement.
2. Get Quotes
Then shop around for the best price. You can do that at your couch online at the website or app of a specific insurer. Or you can call in and get a quote over the phone. Or you can go to brokers or comparison shopping websites.
To get quotes, you’ll need to provide a few pieces of information, such as:
The estimated or appraised value of your engagement ring
Your name
Your email address
Your zip code
Your desired deductible
The insurers will then provide you with policy details and pricing estimates.
3. Compare Quotes
When you’ve collected at least three quotes, put them side by side. Look for differences in cost, but also what each plan covers, and in what order. Jeweller’s Mutual, for example, offers loss, theft, damage, disappearance, flood or earthquake and worldwide travel. Meanwhile, Travelers Insurance offers only loss, theft and fire.
You’ll want to get an engagement ring insurance policy covering loss due to mysterious disappearance to protect against just that.
Finally, take into account the size of discounts, payment options, customer reviews of the company, the NAIC’s rating of customer complaints, and AM Best’s financial strength rating.
4. Apply for Coverage
When you have found an insurer that seems like the best match, on the whole, you will likely be able to continue the application process through an online application. The steps vary by company, but often you need to:
Enter your contact information (name, address, phone number, and email)
Provide personal identifying information (your birthdate and gender)
Disclose who will wear the ring (you or someone else)
Answer questions about past criminal convictions
Answer questions about past jewelry insurance claims
Upload your appraisal and enter the appraisal date (may be optional)
Answer questions about alarm systems in your home or other discounts
Select a start date
And you have to agree to the insurer’s terms of use, privacy policy, overview and fraud warning, and paperless delivery disclosure. Then on to the application.
5. Purchase
If the underwriter approves the application, the insurer will require you to remit the premium, which will activate your coverage. If an appraisal is needed, but you haven’t provided it by the time the underwriter reviews your application, then the insurer may provide you with 10 or so days to do so. If you comply within the allotted timeframe, coverage should remain in force.
Should I Insure My Engagement Ring?
Should you insure your engagement ring? It’s a personal question. It depends on how you weigh these few logical (but not entirely logical) factors. Logical:Materials are valuable. Diamond engagement rings alone can cost thousands of dollars. Emotional:Who broke it off?
On the utilitarian side: the value of the ring, the probabilistic value of a loss, and the cost of an insurance policy. Ring insurance costs about 1-2 per cent of the value of the ring per year, which means that, if the ring is any good, the insurance is pretty cheap. In addition, the more valuable the ring, and the harder it is to replace it, the more valuable insurance gets.
From the emotional side of things, it could be very stressful to feel like you could lose your ring any moment, which is probably an expensive and meaningful gift from your partner. Engagement ring insurance can help to take this weight off your shoulders.
Best Jewelry Insurance Companies
Need some help finding the right insurer for your engagement ring? Here are six of the best, (re)searched on your behalf! Why? Well…
Best for Engagement Ring Insurance: BriteCo
BriteCo offered the best deal, with the cheapest prices, the largest discounts, the widest coverage, and, not unimportant, an A+ financial strength rating from the independent agency AM Best. Oh, and it covers up to 125 per cent of your engagement ring’s appraised value. Make sure you get an online quote from the insurer while you shop around.
Best for No Appraisals: Jewelers Mutual Insurance Group
As a jewelry consumer, if you’re searching for a respected jewellery insurer to help you secure coverage ASAP, be sure to check out Jewelers Mutual Insurance Group, which boasts an A+ AM Best rating, lower-than-expected complaints by NAIC, and an easy-to-complete online application process that rarely requires an appraisal.
Best Online Application Experience: GemShield
So, you don’t have to type in your name and email address to get a quote? Nope, that’s another pain that GemShield prevents. Their quote page just asks for your zip code, estimated ring value, and your desired level of deductible. Are they paying attention to the other two boxes too? Yep, coverage is comprehensive, they’ve got no more than three complaints with the NAIC, and AM Best has classified them as A+ (Superior).
Best for Discounts: Lavalier
Although Lavalier’s price for engagement ring insurance was consistent with the other insurance companies we reviewed, it jumped to the front of the pack when it comes to discounts: having a home alarm, home safe or bank vault, and providing a gemstone grading report can all get your premium reduced! The site offers an easy online quotes process (no personal identifying information required).
Best for High-Value Engagement Rings: Chubb
With liberal appraisal requirments, Chubb is a great option if you need coverage fast and you have a high-value engagement ring. As long as it appraises under $100,000, you don’t need to provide anything more to Chubb than a description of the ring and a valuation, the rep tells me.
Great for Additional Coverages: State Farm
If your heart is set on a diamond engagement ring, State Farm offers inflation coverage, and even wedding gift coverage for your special gifts up to 90 days before and after your wedding.
How Does Ring Insurance Work?
With ring insurance, you will pay a premium to have your ring replaced if you lose it, if it’s stolen, or if it is destroyed in one of the covered situations outlined in your plan. You fill out an application for coverage, select the details of your plan, select your deductible, and pay your monthly or annual premiums. When you have a loss, you make a claim and the company determines whether or not your loss is covered. If it is, you pay your deductible and they help pay for your repair or replacement.
How to Insure a Diamond Ring
If you want to insure your diamond ring, have it appraised so you know how much coverage you need. Get multiple quotes from rated carriers. Compare quotes, the carriers and the coverage. Then apply and buy the coverage.
Does Travel Insurance Cover Engagement Rings?
Neroli Nelson, chief executive of World Nomads, one of the most popular travel insurers, tells me they cover baggage and personal items up to the value of a few thousand dollars (though neither she nor her colleagues would recall exactly), and that jewelry is included in that – but it’s very limited. Under the higher-end ($65-$80 per person*) Explorer Plan, for example, you get up to a total of $3,000 for baggage and personal effects if they get lost, damaged or stolen. But there’s a $1,500 per-item maximum and a $500 combined-maximum limit for jewellery, silver, platinum items, gold items and furs. It comes nowhere near to covering the average cost of an engagement ring.