Life event 2: Got engaged!
You found your life partner! So exciting! Great amounts of time, energy, and thought were placed into the engagement ring. Now certain steps need to be followed to make sure your symbol of everlasting love is kept safe.
Step 1: Take photos of your ring for your personal property records. Copy your gemology report for your records.
Step 2: Make copies of your jewelry receipts. Store these copies in a safe place such as safety deposit box or the cloud.
Step 3: Insure your ring and other jewelry pieces.
Insurance type needed:
Option one: Rider on your Homeowner’s or Renter’s insurance.
Option two: Jewelry insurance through your jewelry store.
The necessity:
Coverage for your engagement ring, and for other jewelry, covers any sudden damage to your ring caused by theft, loss, damage, and disappearance.
What is covered in the policy?
Jewelry that can be covered includes rings, watches, earrings, bracelets, necklaces, pendants, charms, smart jewelry, and loose stones.
Speak to your insurance agent about how the reimbursement is given out after a claim. Some insurance companies will replace your jewelry while others will provide you with a lump sum and you will be responsible for replacing the jewelry.
How much coverage is needed?
The policy coverage amount is determined by the jewelry appraisal from a certified gemologist. Most jewelry stores provide a gemology report when you purchase your engagement ring and wedding bands. If you do not receive this report, then ask your jeweler for a reference where you can receive an appraisal.
The insurance company uses your gemology reports and receipts from the jeweler to set up your policy.
If you are planning on adding a rider to your homeowner’s or renter’s insurance for your engagement ring or other piece of jewelry, then you will want to review your personal property limits in the policy. Your engagement ring is considered personal property under your home insurance. You will want your personal property limits to be high enough to include replacement of an expensive ring. Your personal insurance agent will be able to review your insurance specifics with you.
If your homeowner’s or renter’s insurance doesn’t provide enough coverage to include the ring, then a separate policy can be taken out through the jeweler.
The cost:
On average, the typical jewelry policy costs $1-2 / $100 cost to replace the ring. Thus a policy to cover a $4000 ring will cost $40 – $80 per year.
This is a relatively low price for peace of mind!
Questions to ask about your jewelry coverage:
- What are the situations of loss covered in the policy? Are theft, fire, damage, and disappearance covered?
- How is the ring replaced? Is there a comparable replacement from a specific jeweler or a cash lump sum?
- Is the ring replacement based on full cost of the ring or based on appraised value at time of loss?
- Under what circumstances is the loss of the ring not covered?
- What are the steps in making a claim? What evidence is needed to support your claim?
- Are preventative repairs to the jewelry covered? This includes prong retipping, clasp replacement, stone retightening, and necklace restranding.
Read the fine print of the coverage to make sure the coverage is appropriate for your lifestyle. For example, if you know that you and yours are outdoors enthusiasts, and you will be wearing your wedding bands for such activities, you will want to make sure your policy covers these activities.
The final take away from this information is for you to insure your jewelry and make sure the coverage stays current as you move from property to property. You don’t want a lapse in your coverage, as Murphy’s law will have it, that is when something bad always happens!
Now you are in the know! Use this information to keep your belongings safe and sound!