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He put a gorgeous ring on it and gave you the proposal of your dreams. While your mind might be filled with dreamy thoughts of silk and tulle and beachy honeymoon spots, you may want to take a practical step first and consider insuring your engagement ring. Experts say it’s the best way to rest easy while showing off that valuable sparkler.
You could rely on your homeowner’s or renter’s insurance policy, but those policies generally offer limited coverage for losses for expensive jewelry, and typically have deductibles ranging from $500 to $2,000, says Janet Ruiz, a spokeswoman for the Insurance Information Institute. You can better protect expensive jewelry by buying a rider—also called a floater or endorsement—attached to your homeowner’s or renter’s policy, that offers greater coverage with no deductibles, she adds.
Homeowner’s and renter’s insurance policies at NJM Insurance Group in West Trenton typically limit coverage for jewelry at $1,500 in the case of theft, one of the most common reasons for a jewelry claim, says Pamela Septer of personal lines property underwriting at the company.
She recommends purchasing a scheduled personal property endorsement with your homeowner’s or renter’s policy. The endorsement would provide “all-risk” coverage for the appraised value of the ring, and cover claims arising from things like theft, loss or damage without a deductible.
“By having it under the endorsement, you’re covered for more causes of loss and for greater value, especially for the peril of theft,” Septer says. “You’d be insuring it for greater value than what is provided under the homeowner’s or renter’s policy.”
You typically need to have your ring appraised to obtain the jewelry rider, and Septer recommends you keep your receipt and photos of the ring. “In the event of a loss, they’re very helpful for settling the loss,” she notes.
If you don’t have a homeowner’s or renter’s policy, a Wisconsin company offers standalone jewelry insurance policies. The policies from Jewelers Mutual Insurance Group of Neenah, Wisconsin, typically cost 1 to 2 percent of the value of the ring, and rates are based on where you live and what you’re insuring.
The Jewelers Mutual policies provide worldwide coverage, with no deductible to repair or replace the ring for claims arising from loss, theft, damage and mysterious disappearance, which is when you can’t pinpoint where the ring was lost, says Tyler Krowiorz, the company’s brand marketing manager. The policies are geared toward someone insuring an engagement ring. “We find more often than not these folks are young enough to have not purchased a house yet,” Krowiorz says. “This kind of standalone policy works really well.”
Yes, you will have to pay an annual fee for this coverage, but it might help you sleep better knowing that your ring is covered. “It’s the peace of mind that comes with it,” Krowiorz says. “It seems like a very sensible investment for a bride and groom to be making before they are taking the next steps in their wedding planning.”