Couples can spend thousands of dollars on a wedding ring, but the limited jewelry coverage provided through renter’s and homeowner's insurance offers just a fraction of a ring's worth, should it become lost or damaged.
Check Your Current Coverage
Before making any additional policy purchases or changing your current insurance, check the existing coverage you already have through your renter’s or homeowner's policy, to determine if it's sufficient, relative to the cost of the ring. For example, if your insurance policy has a personal property limit of $1,000 per item of jewelry, added coverage would obviously be unnecessary if the value of your ring falls below that threshold. It's also important to know if there are any group limits on your jewelry, i.e. a limit for the collective value of all items. If such a group limit exists, and you own several items of jewelry, reassess the sufficiency of your coverage, against the total value of what you own. (See also: Making Sure Your Jewelry Is Insured.)
- For those who own expensive rings, the limited coverage of jewelry provided through renter's and homeowner's insurance offers just a fraction of a ring's worth, should it become lost or damaged.
- Those who elect to acquire added coverage should know the finer points of the new policy, including what is and isn’t covered, how coverage will be provided, and how the value of a ring will be determined, be it original cost, initial appraisal or current value.
Get An Appraisal
An appraisal of your ring is often required when purchasing supplemental insurance coverage. To find a local appraiser with proper training and credentials, search the directory of the American Gem Society, and prepare to pay $50 to $150 per hour, for the service. (See also: Introduction To Gemology.)
Consider Coverage Options
If the value of your ring exceeds your current coverage, consider additional insurance options, such as adding an extension or a rider to your current renter’s or homeowner's policy, or insuring your ring through a company that specializes in jewelry insurance. In all cases, read through the fine print of potential policies, to determine the following:
- What is and what isn’t covered (theft, damage, and accidental loss).
- How coverage will be provided (replacement rings, bank checks, entirely new rings, provided by specific jewelers).
- How comprehensively the insurance policy will cover a ring (fully, partially, etc.)
- How the value of a ring will be determined (original cost, initial appraisal, current value).
- What is needed to file a claim.
In addition to these fine-print considerations, compare the costs of the insurance deductible against the coverage. These numbers can differ significantly from company to company and policy to policy. (See also: Looking To Insure Your Wedding Ring? Here's How.)
While insurance agents can provide an exact quote, policies generally command an annual cost of $1 to $2 for every $100 your ring is worth. For example, the average $5,855 engagement ring would cost around $59 to $118 annually to insure.
Insurance companies may lower premiums for those willing to install a home security system or purchase a safe or safe deposit box in which to store rings when they aren't being worn. It's also vital to keep all relevant paperwork, such as appraisals, receipts and photos stored in a secure and dry place.
The Bottom Line
Given the high average costs of modern day wedding rings, acquiring insurance is a prudent move. But if you own less expensive rings that are adequately covered under the modest personal property allowance of your current renter’s or homeowner’s insurance, extra coverage by not be necessary. (See also: How To Insure Your Wedding Dress.)