Engagement ring insurance 101

Mon Oct 30 2023

A diamond engagement ring placed on a pink gold cloth

Recently engaged? Your ring may be the most sentimental piece of jewelry you'll ever own, and it holds significant financial value. So while you're dreamily staring at your gorgeous new engagement ring, take a moment to protect it!

Does home insurance cover engagement rings?

Most homeowners insurance policies provide jewelry coverage. The same goes for condo insurance and renters policies. However, the amount is usually limited even if you have excellent coverage.

Jewelry is covered under the personal property coverage of your standard home insurance policy. It and other valuables or luxury items, like furs, artwork, and antiques, may also be grouped into categories within your policy. These categories are often assigned maximum amounts (coverage limits) that you can be paid to replace those items in the event of a covered loss.

For example, your home insurance policy might limit jewelry coverage to $1,000 per piece of jewelry and $2,500 for all the jewelry in the household. You likely need more personal property coverage if you have a single piece worth more than $1,000 and all of your jewelry together is worth more than $2,500.

Moreover, most standard homeowners or renters insurance policies only provide jewelry coverage in response to specific covered perils, or causes of loss. These perils seldom include  damage (e.g., bent prong and lost stone) or accidental loss (e.g., you lose your ring while swimming).

How to insure your engagement ring and other jewelry

The first step is to review your insurance policy to see how much personal property coverage you have. If it’s not enough, then you may want to get a scheduled personal property endorsement. This endorsement increases the individual coverage limits on specific items, such as your engagement ring. Each valuable piece can be listed (scheduled) on the endorsement, with a corresponding value for which it is insured.

Scheduled personal property endorsements typically provide open-perils coverage, which means that the scheduled items are covered for more risks, not just the standard covered perils outlined in the primary policy. Unfortunately, Kin does not currently offer this endorsement.

However, we have introduced a new product in Florida called the Signature Coverage Collection. It provides eligible homeowners with higher limits on many valuables, including jewelry. Give us a call at 855-717-0022 or get a quote online now.

Who needs engagement ring insurance?

Anyone with a valuable engagement ring or other piece of jewelry needs insurance coverage that helps you replace a stolen or lost piece of jewelry without extensive out-of-pocket costs.

Few people picture themselves as the victim of a crime. However, the most recent statistics from the FBI show that over $1 billion in jewelry and precious metals were stolen in the US in 2019. Only 3.5% of that property was recovered in the same year. Simply stated, if your engagement ring is stolen, you probably won't get it back.

How much does engagement ring insurance cost?

As always, insurance costs vary by insurance company and your unique set of risk factors, like the coverage you want, the value of your ring, and where your home is located.

That said, the cost to insure a single piece of jewelry is usually around $1 - $2 for every $100 in value. Using this estimate, the premium for an $8,000 engagement ring might be around $80 - $160, on average. If you have more valuable pieces or an extensive collection, the cost of coverage increases.

How can I get engagement ring insurance?

The best way to get coverage for your engagement ring is to talk to your insurance company. You can do this when you purchase your policy, but you can usually add coverage any time during your policy term. Your insurer will most likely ask for a jewelry appraisal for your engagement ring or any items you want to insure.

Appraisals not only confirm that the item you want to insure actually exists, they also confirm its value and provide a description if there is a loss.

There are three different types of jewelry appraisals:

  • Replacement cost appraisals determine how much it would cost to replace a piece of jewelry at retail value.

  • Market value appraisals determine the cash value of an item for sale, resale, or charitable donation and reflects what you could possibly sell it for if you could find a willing buyer.

  • Liquidation value appraisals determine the fair market value for estate, auction, divorce, loan collateral, or tax purposes and often happen in urgent circumstances.

Remember that the cost of your jewelry or other valuable items can change over time. This means jewelry should be appraised every 3 - 5 years, and your insurance policy should be adjusted accordingly. Likewise, antiques, artwork, silver, and other collectibles should also be appraised and inventoried regularly, and your insurance policies updated to reflect any change in value.

Is engagement ring insurance worth it?

In most cases, engagement ring insurance is worth it – especially if your ring is worth more than the standard coverage offered by your homeowners or condo insurance. Then getting engagement ring insurance is a no-brainer.

You do have to put in a little effort in getting appraisals and documenting your ring's value, and your home insurance costs will go up. But it’s far less costly to properly insure your engagement ring than it would be to replace it if it were lost. Making sure your valuables are properly insured means you’re more likely to recoup your losses even in the worst of circumstances.

Not sure if your personal property coverage is up to the task? Start figuring it out with a home inventory.


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