Now that you’ve decided to insure your incredible engagement ring, it’s time to find out how much it will cost. Although prices may vary between different insurance companies, the main thing to look at is the policy and what it covers. Start by choosing a jewelry insurance company, not just any general insurance company that covers everything from pets and houses, to travel and dental work. So let’s dive in and find out how much is engagement ring insurance.
An Overview of the Cost of Engagement Ring Insurance
An engagement ring insurance policy should provide replacement coverage for loss, theft, damage, or mysterious disappearance. The cost of insuring your engagement ring will probably be between 0.5% and 2% of the appraised value. So if your ring is worth $5,000, you’d pay $25-$75 per year for your ring insurance. But that said, there are still other factors to take into consideration.
Appraisal and the Price of Engagement Ring Insurance
The insurance company needs to know the value of your ring before they can insure it. This is done by providing the insurance company with an appraisal. Sometimes the purchase receipt is also needed or may be accepted in place of an appraisal. You may be able to get an appraisal from the place where the ring was purchased. Otherwise, you could ask your insurance company to recommend an appraiser. The American Gem Society has a directory of appraisers. The appraiser will assess the metal, gems, and setting of the ring to determine its value. An appraisal can cost $50-$200.
Other Factors That Affect the Cost of Insuring an Engagement Ring
- One-of-A-Kind – If your engagement is a family heirloom, if it is custom-made jewelry, or if it is unique in any way it is worth mentioning this to your insurance provider. You need to make sure that the policy covers the cost of replacing a unique ring.
- Upgraded Engagement Rings – If you have your ring upgraded after you’ve bought an insurance policy, for example, if you’ve had the gems replaced with more valuable diamonds, you must get it reappraised. Once you have the reappraisal inform your insurance company. The premium may go up but at least you’ll be covered for the new value of the ring.
- Special Circumstances – You may be able to reduce the cost of your engagement ring insurance by discussing any unique circumstances. For example, installing a safe in your home, a home security system, or keeping your jewelry in a bank deposit box.
- Change of Value – If the value of your ring changes due to the price of precious metals or gems, you should discuss reappraisal with your insurance professional. Some companies like BriteCo automatically update the value annually and cover 120% of the ring’s appraised value. Generally, you should get a reappraisal every 3-5 years, especially if your ring is vintage.
- Jewelry Insurance Package – If you are insuring several pieces of jewelry together the price of covering your engagement ring will be included in the overall package and may be cheaper in the end.
- Insurance Payments – Choose a company where you can opt to pay your insurance monthly or annually. Usually, the annual payment comes with a discount.
- Deductible – Some insurance policies for engagement rings require you to cover the first $100 or more of the claim. That means when you make a claim on a lost, stolen, or damaged ring, you’ll be paying money-out-of-pocket for to replace or repair the ring. Take this into account when you are calculating the cost of the jewelry insurance policy.
- Location – If you live in an area where the crime rate is high, your engagement ring premium might be higher.
- International Coverage – Check that your ring insurance covers loss, theft, or damage that occurs abroad.
Can You Put A Price on Love?
Just like you can’t put a price on love, you can’t put a price on something that has sentimental value. Your engagement ring represents the beginning of your journey together, and its sparkling diamonds represent the spark that brought you together. You might want to pass this ring on to future generations, and you will certainly want to wear it throughout your life. So ensuring your ring is about much more than financial value. In the event of loss, theft, or damage to your ring, insurance will allow you to replace the ring or have it repaired. This is something that you might not be able to afford without the insurance money.
