Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but this does not affect the opinions or ratings of our editors.
If love fuels the desire to get down on one knee and pull out an engagement ring, then have an insurance plan in place as well. Yes, we realize it might kill some of the romance right now, but it’s safe to say you wouldn’t like it if something terrible happened to this ring before or after asking the question.
Not only could a lost or damaged ring be more painful than getting hit by Cupid’s arrow, it could also be costly. In 2020, an engagement ring cost an average of $ 5,500, according to the wedding website The Knot. Over 70% of consumers said their engagement ring was one of the most expensive items they owned, according to an April 2021 survey by Jewelers Mutual.
“The engagement ring measures up to a home or vehicle in terms of major investments,” says Bryan Howard of Jewelers Mutual, a jewelry insurance company. “Unlike a house or vehicle, engagement rings (and other jewelry) are one of the smallest items and most likely to get lost.”
Does your home insurance cover an engagement ring?
A typical home insurance policy covers jewelry, including an engagement ring, that is stolen or destroyed in a disaster like a fire. However, an engagement ring typically falls under a coverage limit of $ 1,500 in the event of theft. You can pay extra to increase this limit, say to $ 2,500 for each piece and $ 5,000 for all jewelry, but even that may not make up for the full value of an engagement ring.
Howard cautions against assuming that your home insurance policy will adequately cover an engagement ring. Contact your insurer for details, he recommends.
Beyond increasing the coverage limit, you can purchase a “personal items float”, also known as personal property planning. The price of a float exceeds the price of raising the coverage limit, but it can also provide a higher level of protection. This is because a float exceeds the ordinary coverage limit under a home insurance policy. When planning an engagement ring, it is detailed and rated on policy. A float describes what would not be covered, such as the engagement ring floating in flood waters.
A float also offers better coverage than a regular home insurance policy because it covers accidental loss, including an engagement ring that slides down the kitchen sink drain. That’s a serious consideration: In a 2019 Jewelers Mutual survey, 60% of respondents admitted that they did not remove their engagement rings before washing their hands and 50% did not remove them before washing their hands. take a shower or sleep.
Whether you rely on home insurance, floating insurance, or special jewelry insurance, ring insurance will travel with you, for example, if you are going on a honeymoon in Aruba.
Should you take out independent jewelry insurance?
If the engagement ring has tremendous monetary and sentimental value, you may want to consider independent jewelry insurance. One of these policies can cover a range of circumstances, such as the accidental loss, theft or mysterious disappearance of an engagement ring, and can be delivered without a deductible.
Independent jewelry insurance could even go so far as to cover a lost or damaged diamond. Jewelers Mutual claims that covering an engagement ring worth $ 5,500 would cost around $ 55 to $ 110 per year.
Half of respondents to the Jewelers Mutual survey say they would have a hard time paying for a replacement ring if their ring was lost, stolen or damaged. Almost three-quarters of those polled said they would be very upset if anything happened to their ring and would have peace of mind knowing the ring is insured.
When it comes to purchasing an independent jewelry insurance policy, Jewelers Mutual recommends that you ask yourself these questions:
- Would I be devastated by the loss of my ring?
- Are there any limits of coverage with my current insurance?
- Would I be unable to comfortably cover the cost of a replacement ring?
If you answered “yes” to any of these questions, it is worth considering a stand-alone policy.
Start a collection?
While an engagement ring represents the start of a new chapter in life, Tannie Ng, senior underwriter of art, jewelry and valuable collections at Chubb Personal Risk Services, notes that an engagement ring can also mark the start of a jewelry collection. Therefore, Ng advises looking at a jewelry policy that includes automatic protection for newly acquired pieces. For example, Chubb’s valuables policy offers automatic coverage for 90 days up to 25% of the limit for itemized jewelry.
“It’s a good idea to have your engagement ring and other jewelry periodically reassessed and to make sure your insurance is updated to reflect these values,” suggests Ng. “The price of diamonds and precious metals can go up or down over time, so updated valuations will ensure your current policy values are reflected. “