If you’ve taken the time to select and purchase the perfect ring, it only makes sense to protect it. You’ve gone to great lengths to choose the right metal, learn about diamond grades and values, find the style to suit your or your beloved’s fashion sense and all of this comes at a cost. Insuring this valuable and sentimental treasure against loss, damage or theft is a wise decision.
Do I need insurance?
Insurance may not be romantic but neither is the disappointment and grief (not to mention the cost) or replacing your irreplaceable wedding or engagement ring. It’s something you and your intended need to discuss with a qualified agent whether your ring is valued at £350 or £7,000 or more. Even if it’s an inherited family heirloom you didn’t have to pay for, it should be properly insured. You’re about to start a new life together and that life will be filled with practicalities like this. The piece of mind you’ll have from knowing your investment is safe will make keeping the romance in your relationship a lot easier!
How do I have my ring insured?
One popular way to insure your ring is to add it as a “rider” to your renter’s or homeowner’s policy. A typical policy covers anything in your home up to a certain dollar value. Under the usual coverage anything particularly expensive, like your ring or fine art, high-end computers and electronics or additional jewellery, may have a dollar limit on their replacement that could be far below their actual value. An extension that covers these items for a higher replacement value is called scheduled personal property coverage.
The scheduled personal property coverage will increase the limits on your current policy to insure the ring (or other items) at their full appraised value. That means you will have to have the ring appraised as well as provide the receipts for its purchase to the insurance company. (The appraisal will cost a small fee and you should have it done by a certified gemologist.) Talk to your agent to see what other steps you will need to take.
Who buys the insurance policy?
This decision is usually made by the couple. If they two do not live together, oftentimes the person wearing the ring will have it added to his or her policy until the after wedding when they move in together. If you move after wedding, don’t forget to add the ring to your new homeowner’s or renter’s policy as soon as you can.
How much does ring insurance cost?
Policy costs will vary widely based on a number of variables. The value of the ring, the crime rate in your area, the amount of your deductible – all these will factor into your monthly cost. You can usually count on an annual cost of about £1 to £2 for every £70 it would take to replace the ring.
Be sure to talk to you agent about what exactly you’re paying for – replacement value or actual value. Replacement value will get you back what you paid but if the ring value increased (like when the price of gold recently skyrocketed) you won’t get its current value. Find out if the coverage is just for theft or if accidental damage is also covered. If your ring is vintage, find out how your unique piece will be valued. Will you get a check or does the insurer require you to buy a replacement through a specified seller?
You’re bound to have questions about protecting this special piece of jewellery. Talk to your agent before you buy!