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.

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. 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.

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. 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.

The content on this site is offered only as a public service to the web community and does not constitute solicitation or provision of legal advice. This site should not be used as a substitute for obtaining legal advice from an insurance company or an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. The comments and opinions expressed on this site are of the individual author and may not reflect the opinions of the insurance company or any individual attorney.