Friday, December 27th, 2013 by Claire

Hitch or Ditch? Engagement Ring Insurance


lost ring

It’s a few days from the New Year, and with it, more than 100,000 new engagement rings making their debut. We love this time of year.

After hearing heart-breaking stories of lost and stolen rings, we asked (and answered) the top questions about jewelry insurance.

Q: What is engagement ring insurance?

A: Engagement ring insurance can protect against loss, theft, or damage. We most often hear about diamonds falling from the prongs (but maybe you have a flair for the dramatic like this couple and tied your ring to an owl). That’s the type of thing insurance should cover. Be careful though, some policies don’t cover all things (more on that later).

 

Q: Do I really need it? I'm already on a tight budget.

A: Probably. If you don’t have the cash to buy the ring again tomorrow (and couldn’t live without one until you saved enough to rebuy), insure it.

 

Q: Where should I buy it?

A: Let’s start with the good news: your current renter’s or homeowner’s insurance likely includes some coverage. Call your agent or check your policy to review coverage types and deductibles.

Shop around. Get a quote from a company specializing in jewelry (our favorite is Lavalier). It’s surprisingly quick and you’ll learn a lot about different coverage types and costs. It’s much easier than buying other types of insurance.

Your jeweler will likely also work with a company providing coverage. Get a quote, compare it.

 

Q: How much does it cost?

A: Typically: 1-2% of the value of the ring. A $5,000 ring will cost $50 - $100 a year to insure.

 

Q: What should the insurance cover?

A: Insurance companies are happy to take your money and sell you more than you need. Jewelry insurance is one of the few categories where we recommend comprehensive coverage though. The price difference between a policy that excludes things like ‘mysterious disappearance’ or damage (like a diamond cracking) is just too small to buy anything else. On a $5000 ring, a comprehensive policy is only $5-$10 more a year. It also makes shopping for insurance much easier by reducing all the options (that’s worth $5 alone!).

  

Q: What deductible should I choose?

A. That’s really up to you. A higher deductible lowers your premium, but also means more money in the event of a claim. In our research, we saw a sweet spot around $500.

 

Q: My engagement ring is an antique, how could having insurance possibly replace it if it was lost or stolen?

A: Insurance will cover the dollar value of any ring, new or antique. It can’t cover sentimental value, which is often the highest value if it’s a family heirloom. But a good insurer (like Lavalier, which is a reason we like them), will let you work with a jeweler who can build a replica of the antique.