Valentine’s Day has come and gone, but engagement season never ends. People say “yes” all year round, particularly in December, when 16 percent of the year’s marriage proposals occur, according to WeddingWire.
And, the rings that seal the deal cost an average of $5,598, according to a Real Weddings Study conducted by The Knot in 2014. In some states, such as Minnesota, New Hampshire and Alabama, upwards of $8,000 is commonly spent on this symbol of commitment.
You may have purchased a ring yourself and planned the perfect romantic proposal. But you probably didn’t plan on what could go wrong—there’s always the chance that an accident could happen.
Let’s say that you’ve secured a secluded table on a dock in your fiancé’s favorite vacation spot, with a spectacular sunset as the backdrop for your proposal. But amid the excitement, hugs and tears, the ring slips from your hands and plummets into the ocean. If you can’t recover the ring, and you haven’t insured it, a beautiful moment can quickly become tragic.
Is Ring Insurance Really Necessary?
Yes. To avoid losing the thousands of dollars you spent on the ring, consider insuring it immediately for loss or theft —even before you leave the jewelry store. Some insurance providers will allow you to obtain coverage immediately upon purchase of the ring and will require an appraisal to be sent in to finalize the coverage.
When shopping for jewelry insurance, consider the following tips.
- Have your ring appraised regularly and update your insurance policy accordingly. You can’t properly insure your cherished piece if you don’t know its true value. Many factors go into determining its value, including the cut, color, clarity, weight and carat of the diamond. Appraisers can easily determine the quality of the stone(s) to get you the most accurate appraisal value. Typically, a policy will insure the ring for its appraised value, not the amount for which it was purchased. Your first appraisal will determine the base value of the ring. If it is not damaged over time, the value can go up exponentially, so consider having your ring reappraised every two to three years. When you do go in for a reappraisal, make sure to bring a copy of your previous appraisal to streamline the process.
- Shop around for the right policy. There are many coverage options to choose from, so it’s best to shop around and select the policy that suits you and your unique ring. If your ring is an expensive family heirloom or contains an exceptionally large or rare diamond, you may want a scheduled personal property endorsement to ensure that you have adequate coverage.
- Ask questions. Insurance can be complicated. When seeking coverage for your jewelry, make sure you know the policy you’re considering inside and out. For instance, there might be limitations on where replacement jewelry can be purchased. Your ring may be covered for damage or loss in certain circumstances, such as a home fire, but probably not for everyday damage. It’s important to ask questions before you purchase insurance.
- Check with your current homeowners insurance, condo insurance or renters insurance provider. You may have existing coverage for your engagement ring, but not as much as you need. Most insurance companies cover expensive jewelry under personal property coverage. However, there usually is a dollar limit set at $1,000 to $2,000 to replace lost, stolen or damaged valuables, according to the Insurance Information Institute. Additional coverage in the form of a scheduled endorsement can be added to a homeowners insurance policy to potentially cover a variety of mishaps involving your ring.
- Add coverage for your other valuables. Scheduled endorsements can—and should—be extended to more than just your prized engagement ring. Additional high-value items within your home, such as your rare collection of oil paintings, Italian pottery set or home entertainment system, can likely all be added for full coverage under your homeowners policy.
To ensure that your valuables stay protected, contact your independent insurance agent today to discuss your coverage.