Insuring an engagement ring is important and should be factored in to the cost of buying the ring. You need to protect your financial investment and the emotional one that comes along with such a special purchase.
Engagement Ring Insurance
Generally speaking you have a few options. You can add the ring to your existing renter/homeowner insurance policy or get a Personal Articles Floater/Policy which means that you cover the ring separately.
Most homeowner insurance policies will have limitations and only cover you for specific named perils or events so you need to ask your insurance company what is covered and under what conditions.
Jewelry Insurance Coverage
Make sure that you’re covered for all perils, damage, theft, loss, mysterious disappearance, chips, lost stone, etc.
Make your insurance agent explain to you the difference between replacement cost and agreed value insurance. The latter replaces your engagement ring with cash or an equivalent on a pre-determined agreed value while the other covers you for the cost of replacement on the day of the claim.
If your agent isn’t able to provide you with the type of coverage you need, try Jewelers Mutual, they are probably the best known and most respected jewelry specific insurance company in the U.S.
Personal Articles Floater
The safest and most protected route is the separate Personal Articles Floater. It can be done through a jewelry endorsement for a specific amount with additional and expanded coverage or as a completely separate policy. Beware that an agent may recommend blanket coverage for your ring because it’s easier for both you and them but rarely will you get the same type of coverage.
An added benefit to insuring an engagement ring in of a separate policy is that it can have no deductible, unlike your homeowner policy which may have a deductible of $1000 or more.
Whichever way you decide to go, make sure that you are covered for all perils, damage, theft, loss, mysterious disappearance, chips, lost stone, etc. You need to ask your insurance agent specifically about all the coverage they offer.
Engagement Ring Insurance Policy Questions
Research your insurance options and get an independent jewelry appraisal (discussed below) specifically for insurance purposes. Ask the following questions:
What’s the claim procedure? Will they give you a check or will they replace the stone or ring? We recommend the check so that you know exactly what you are getting.
What is the repair policy? Do you need to go to a specific jeweler or can you take the ring anywhere that you want to.
How much does the policy cover towards the ring’s value? (All of it or only a portion?)
What exactly and specifically am I covered for?
What, if anything, am I not covered for?
Are there any circumstances that could affect my coverage?
What if the ring appreciates in value, will I only receive what we paid for it?
Generally speaking insuring an engagement ring will cost somewhere between 1 and 2 percent of the value of the ring per year. So if you paid $6000 for your ring you can expect to pay between $60 and $120 per year for insurance. Cost will vary depending on the country, state or even city.
Finally, we can’t talk about insuring an engagement ring without discussing diamond appraisal.
The key word in an independent diamond appraisal is independent. Most jewelry stores have appraisers but remember that they’re in the business of selling and buying stones (and jewelry) so you can never be too sure of what factors went into your appraisal or their motives for giving the appraisal that they did.
That’s not to say that there aren’t lots of good and honest independent appraisers who work in stores, there are, but it is something to consider.
The most reliable way to validate the authenticity of your engagement ring & diamond is with an independent appraisal—particularly if your diamond didn’t come with any GIA type of certification.
Engaging Tip: Always try and buy a diamond that comes with a certificate, especially if it’s larger than .30 carats. It isn’t necessary for smaller diamonds or ones that are part of the setting because the value is always in the center stone.
Another reason for an appraisal is for insurance purposes. All good jewelry is a financial, as well as, emotional investment and it needs to be protected.
If you paid a pretty penny for your engagement ring and that diamond make sure that, at the very least, it’s covered by your existing insurance policy. Ideally, you want a separate jewelry insurance repair and replacement policy that will cover you in the event of loss, theft, and damage.
Diamond Appraisal Resources
The best way to ensure you find an independent jewelry appraiser that you can trust is through a larger association that upholds its members to strict standards and ethics.
In the U.S., check out the American Gem Society (AGS). Their website is terrific and lets you search for an accredited jewelry appraiser by state or by zip code:
For Canadians, the Canadian Jewellers Association (CJA) has a similar search. You simply enter your location and they bring back the results for your city or town. By the way, AGS also offers a Canadian search.
For those of you who live in other parts of the world, the main diamond certifications come from IGI (International Gemological Institute), the EGL (European Gemological Laboratory) HRD Antwerp so there is a good chance your diamond appraisal may come with a certificate from one of these organizations.
You can also do a quick search online to find a comparable organization in your country if none of these service your part of the world. Pricescope.com is also a good resource for finding appraisers worldwide.
Engagement rings have sentimental value as well as being major investments. Whether you choose an engagement ring insurance policy that is part of your homeowner’s insurance, renter’s insurance, or one from an outside jewelry insurance company, it’s important that you take the necessary steps to insuring an engagement ring.