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Let's face it. Getting engaged, finding the right engagement ring, and arranging just the right setting for your proposal are all big challenges. Probably the last thing on your mind is getting insurance for the engagement ring. When you picked up the ring at your local jeweler, it may have crossed your mind, "What if I lose this before the proposal?"
In one recent research study, more than 40% of engaged couples indicated they did not get insurance coverage for their engagement rings. Why? The biggest reason given was they thought it was too expensive. A close second was that people didn't know where or how to get insurance. About one out of ten just put it off and neglected to get coverage.
How Expensive is Engagement Ring Insurance?
You might be surprised at how affordable it is to insure your engagement ring, especially because it's probably one of the biggest purchases of your life to date outside of buying a car or a house. The average spend on a diamond engagement ring in 2021 was around $7,000. The annual cost to insure that $7,000 ranges from about 0.5% to 3% of its value (only $73 to $175 per year) if you go with an insurance company that specializes in jewelry insurance. Specialty jewelry insurance is primarily replacement or repair of a jewelry item, not a cash reimbursement. Getting an agreed-value insurance policy to receive cash for a claim will almost certainly cost you more to insure.
The same research study of engaged couples mentioned above rated the relative cost of jewelry insurance compared to other major purchases or ownership. Respondents revealed that health insurance is the insurance type they consider most expensive, followed by homeowners insurance and auto insurance. Jewelry insurance falls towards the lower half of the list, ranking as one of the most affordable insurance types among those who currently have it.
Doesn't Homeowners or Renters Insurance Cover an Engagement Ring?
Depends. If you rely on your homeowners or renters insurance to cover personal property, you may not have full coverage for loss or damage to a ring or necklace since those insurers typically cap coverage at $1,000 up to $2,000, along with a deductible. If you file a claim for a lost $5,000 engagement ring, expect to pay between $3,000 to $4,000 out of your own pocket to replace it. Making a claim for a lost or damaged piece of jewelry also risks a future increase in your homeowners premium and in some cases can contribute to a policy cancellation.
While some people can add a floater for separate coverage on their existing homeowners or renters policy, these riders are typically subject to deductibles and can be more expensive than specialty jewelry insurers. And, should you make a claim, you may be forced to get a replacement stone from the insurance company's preferred network rather than working with your local jeweler.
Does a Jewelry Warranty Cover a Lost or Damaged Engagement Ring?
No. A jewelry warranty is not intended to cover the kinds of situations that specialty jewelry insurance offers. Warranties do not protect your ring for any types of loss, theft, disappearance or damage that are standard coverage with specialty jewelry insurance.
How Much Does it Cost to Insure Wedding Rings?
With the average cost of a woman's wedding ring in the low thousands, it still makes sense to consider getting it insured with specialty jewelry insurance. Besides avoiding impact on making a claim through your homeowners policy, your cost could be as low as four dollars a month. One study in England found that one out of seven men lost their wedding ring in the past five years. So your odds of needing to make a claim might be higher than you initially thought. Don't take the risk as the cost to replace your valuable jewerly is significantly higher, get an insurance quote right away to make sure you are protected.
Where Can I Find Affordable Jewelry Insurance?
A number of specialty jewelry insurance companies sell coverage and you have different insurance options. BriteCo jewelry and watch insurance has been evaluated by Benzinga and rated best overall value for specialty jewelry insurance with costs on the lower end ranging from 0.5% to 1.5%. And affordable doesn't mean you have to sacrifice coverage. BriteCo policies cover up to 125% of appraised value of a jewelry item and no deductibles for standard policies. Its website lists insuring a $8,500 engagement ring in Chicago for only $4.68 a month. As an added bonus, your appraisal value for each insured item is updated every year to make sure your coverage stays current, and you don't have to get a piece reappraised as required by some jewelry policies.
The good news is you can get a no-obligation custom quote to insure engagement rings and specialty jewelry through BriteCo from your smartphone in 60 seconds or less. If you like your quote, you answer a few standard questions and can get full coverage in a matter of minutes. You will be asked to upload a photo of the insured piece from your phone and provide documentation such as an appraisal, a detailed sales receipt or a gemology lab report. That's it. No hassle. No excuses. No worries if something happens. And total peace of mind.
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