Insurance probably isn’t top-of-mind for most when purchasing an engagement ring and planning a proposal. That’s to be expected. But a ring is a substantial purchase, and though considering insurance isn’t quite as exciting as a proposal, it’s the best way to protect the purchase in the event it’s stolen, lost or even dropped down the garbage disposal.

Personal property coverage exists for these sort of situations, and for incredibly high priced items. Just like with a home or auto policy, it helps if you know what your options are in terms of coverage limits and options. Especially with an expensive item such as an engagement ring. If you need help looking at policies, try our online, free tool. 

Adding an Engagement Ring to a Homeowners Insurance or Renters Insurance Policy

While standard homeowners and renters insurance policies typically provide coverage for jewelry, they only do so up to the policy’s limits. So it depends on the type of policy that you have. For example, if a homeowner has a $2,000 policy limit and loses a ring worth $10,000, the insurance company would only pay out $2,000 — less the deductible — for the claim. So for pricy items, such as engagement rings, insurance companies generally not only allow, but encourage people to purchase a “rider” or “endorsement” that provides additional coverage on a specific item. The good news here is that you won’t have to take out a separate policy. 

Given that Americans spend an average of about $6000 on an engagement ring, additional insurance coverage is likely needed in order to have full protection on the ring. This means knowing what type of coverage to have and what the limit will be. So what are the steps to secure a rider on an engagement ring?

Once a ring has been purchased, the buyer should keep the receipt in a safe place and also secure a digital copy of it. This is needed to help determine the ring’s value, but a receipt isn’t enough in many cases, especially for more expensive rings. The buyer should take the ring to a professional appraiser who can provide a verified description of the ring and its features so the insurance company can properly cover its value. Note: A ring’s value may change over time, having a new appraisal done from time to time is good practice.

Don’t have homeowners or renters insurance?

Not everyone who purchases an engagement ring has homeowners or renters insurance, but that doesn’t mean they can’t insure the ring. An option for those without insurance or who don’t want to purchase a rider through their current policy is to explore specialty jewelry insurers.

How much will it cost to insure my ring?

The price to insure a ring depends on a few variables, but the biggest variable is the ring’s worth. The insurance cost per year is typically around 1 or 2 percent of the cost of the ring. So if someone spends $6,000 on an engagement ring, they should expect to pay somewhere between $60 and $120 per year to insure it. The insurance company where the policy is purchased and where the insured lives will also likely impact the cost of the rider.

Questions to Ask Your Insurance Company

As is the case with purchasing any insurance policy, it’s important to understand what is and isn’t covered. Some questions to consider asking the insurance company are under what circumstances is the ring covered? For instance, is it covered for damage as well as theft? If it’s stolen, what proof will you need to file a claim?

Some policies are insured for a ring replacement, while others offer a cash payout. In the event the ring is replaced, it’s important for the insured to know if there are limitations on which stores they can buy the replacement ring.

Asking the right questions and understanding the policy terms is an important step to ensure the coverage is sufficient in the unfortunate event of a claim. While it may not seem like the most romantic situation to imagine, keeping your valuable items protected will let you breathe easy in case anything happens. Whether it’s for an engagement ring, a family heirloom, or another precious and expensive item, having adequate coverage can provide peace of mind. 

We also have a free tool that will let you compare quotes from different companies. This way, you can find a competitive price if you’re in the market for a new insurer, or at the very least can see what prices look like, ensuring you’ll get excellent service.

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