Can I insure my engagement ring?

You can get insurance for your engagement ring.

You can get insurance for your engagement ring.

Congratulations! Your soon-to-be spouse has popped the question! But there’s another big question that you should be asking now that you own such an expensive piece of jewelry: How can I protect my engagement ring? Fortunately, there are tons of different types of insurance for covering different kinds of investments, including your engagement ring. So, we’ll give you a rundown of how to get insurance for your engagement ring and what engagement ring insurance truly is.

Can I insure my engagement ring?

Insurance isn’t just for your car or home anymore. You can insure your pet, your party, and yes, even your new engagement ring. But just like other types of insurance, you have to make sure you have the right coverage and limits to truly protect your ring.

Why should I insure my engagement ring?

In short, an engagement ring is a huge investment. It’s also rather small, and depending on what it’s made of, it can be very fragile. So, if it drops down a sink drain while you’re washing dishes or the stone falls out of its setting or the gold band has been twisted and warped beyond recognition, you’re going to want something that can help you make up some of that loss – at least money-wise.

How can I insure my engagement ring?

Your Atlanta home insurance policy may have limited protection for jewelry or valuables, so you might need extra coverage to insure your engagement ring.

There are two ways that can make sure you have enough coverage for your engagement ring. A common way is by adding an endorsement to your homeowners or renters’ insurance policy. Be aware, though, that you need to make sure you have enough insurance added to your home insurance policy to fully protect your ring.

The second way is to get an entirely separate valuable items policy. However, to get an entirely separate policy for any type of valuable item, it must be worth over $10,000 individually or part of a collection that’s worth $50,000 or more.

In either case, your insurance agent will need either a sales receipt for the ring or proof of appraisal to determine the coverage limits that are right for you. However, you’ll need to consider whether you want to insure your engagement ring for – its actual cash value (ACV) or replacement cost value (RCV).

Actual Cost Value vs. Replacement Cost Value

When insuring their personal property, a lot of people assume that their insurance will completely replace the items lost in a pinch.  However, there are two ways that your insurance covers property – for its actual cash value or for its replacement cost value.

If something is insured for its actual cash value, it’s insured for the amount that you bought it for minus depreciation. For example: Let’s say that your engagement ring was worth $3,000 when you bought it. If you insure it for its actual cash value and lose it three years down the road, your insurance may only help you pay for a depreciated value of $2,200.

However, if you insure your ring for its replacement cost value, your insurance could reimburse you for the full $3,000. This is why it’s important to get your ring appraised or keep the sales receipt when insuring it.

What does engagement ring insurance cover?

If you’re wondering about the specifics of what your engagement ring insurance will cover, there’s not a cut-and-dry answer. Different insurance carriers cover different situations. So, it’s important when finding coverage for your ring to talk to your agent. Find out if your policy will cover things like theft, accidental damage, and accidental loss. Learn how your coverage will be provided; it can be in the form of a cash reimbursement, replacement ring, or a new ring from a jeweler of your carrier’s choice.

How can I protect my engagement ring?

Although engagement ring insurance can come in handy, no one likes the feeling of losing something so precious or filing an insurance claim for that item. So, to keep your ring safe, keep these tips in mind:

  • Always store valuable items in a secure place, and don’t leave them out in the open.
  • If you’re not going to be wearing your ring much, invest in a small safe or safety deposit box.
  • Secure your home at night. (If you have a home security system, you may even be able to get a discount on your home insurance.)

So, that’s the nitty-gritty on engagement ring insurance. Overall, it’s a great type of inexpensive coverage that can save you a bit of heartache in the long run. Plus, our insurance experts can help you find the rider or policy that perfectly fits your needs.

Day in and day out, we help tons of people find customized and affordable  Atlanta home, renters, and auto insurance to protect the things that matter the most. To start saving money on the protection you need, all you have to do is give us a call or fill out our online form.

Do I have enough Atlanta home insurance to cover the cost of my jewelry?

Check your home insurance policy to see what it's limit of coverage is for jewelry.

Check your home insurance policy to see what it's limit of coverage is for jewelry.

Your home insurance is designed to protect you and your family from loss. But unfortunately that homeowners insurance comes with limits – knew there had to be a catch somewhere! One thing that might be subject to a strict limit is jewelry. You know that you need to protect your home from burglary, but you also need to consider what your insurance will cover where valuables are concerned. Some homeowners and renters policies have a limit as low as $1000 for jewelry. Depending on the bling you have, this may not be enough to cover everything if your jewelry is stolen or destroyed. You’ll have to review your policy carefully to see what your jewelry limit is.

If you find that you don’t have enough coverage for all of your jewelry, you have a few options to make sure it’s fully protected.

Valuable items endorsement:

An endorsement is an addition to your policy that can change it. They can cover belongings that are excluded from your policy, raise the limit paid out for covered losses, and even add to the list of covered perils. Items included in the endorsement are scheduled onto a list. Basically, in the case of jewelry, an endorsement can add protection that wouldn’t otherwise be there by raising your limit of coverage. It’s usually wise to consider endorsements for items valued over $2,500.

Floater:

A floater is another way to add coverage for your jewelry. It covers items that are easily moved, and they’re used to increase the limit of coverage for valuable belongings. If you have a pricey bracelet, brooch, ring, or necklace, for example, a floater can help you increase your coverage for the piece.

Valuable items policy:

If you have a very expensive piece of jewelry, for insurance a diamond necklace worth more than $10,000, you can get an entirely separate policy to cover it. Items that are very expensive may not get enough coverage from a floater or endorsement, which is why you might need to consider taking out a completely separate policy rather than adding it to your home insurance.

How much extra insurance do I need?

That depends on the item you want to insure. At any rate, you need to make sure that whatever method you use to insure your jewelry will cover replacements made of similar materials and type. Also, you should consider taking a home inventory so that you know exactly which pieces of jewelry you need to get additional coverage for.

To figure out what kind of limits you should be looking at, you’ll need to have your jewelry appraised by a specialist. Ask them to list each item you’re having appraised separately and to note a description and the value. Keep in mind that you’ll need to update your appraisals every once in a while because prices change and markets fluctuate. You need to have a current appraisal so that you can keep your insurance up-to-date and make any necessary changes to your policy.

Pro tip: Don’t forget that your monitored security system can qualify you for a discount on your home insurance.

In conclusion:

Home or renters insurance policies usually have strict limits of coverage for jewelry, and these limits may not be enough to fully cover all of the valuables in your possession. You need to review your policy, and if the value of your jewelry exceeds the limit specified in your policy, you’ll have to talk with your agent about ways to add extra coverage. Make sure you have the insurance you need to protect your jewelry and don’t underestimate the value of your belongings. When in doubt, have the jewelry appraised. It’s worth it to ensure that you’ll get the money you need to replace the piece of pieces that were stolen or destroyed.

Do you need home or renters insurance? We’d love to get you some free quotes for your coverage – it’s what we do. We can help you build an insurance plan to protect your home, valuables and all. Just fill out our online quote form or give us a call today to get started.