5 Things You MUST Do when Insuring a Diamond Engagement Ring

by Gary Castle

You’ve met your soul mate. You’ve purchased the ring. Maybe you’ve already popped the question. Congratulations, you’re getting married! 

During this exciting time it can be easy to overlook important details, but the moment you take possession of a diamond engagement ring, insuring it should be a top priority. 

Odds are the value of the ring you purchased represents a significant amount of money in context of your income.  Here’s how you protect that symbol of love in a seamless and cost effective manner. 

1. Your Ring is a “Special Article”

You might have asked yourself, “I have insurance for my apartment, co-op, home etc.  Why do I need insurance for my ring?” 

The typical insurance policy covering a residence has very limited or no coverage for Jewelry and other special articles, depending on the cause of loss.  It is therefore recommended that specific coverage be purchased for your Jewelry.  

2. Know the Fine Print

While the chances are low, should you need to put in a claim for your ring, your insurance policy will determine the Loss Settlement Valuation.

Some policies offer Agreed Value, others, Replacement Cost.  Some will offer Repair & Replace options only.  Your broker should explain the differences between these settlement options to you prior to selecting your policy.  

Your jeweler, for example, might offer you insurance at the point of sale.  While the ease of using that service might be appealing, the policy that is offered might not suit your specific needs for settlement.  An experienced agent can help you navigate the options to arrive at the correct choice, while providing you with just as seamless an experience. 

3. Know the Rates

Jewelry rates vary widely for each insurance company. An independent insurance agent can quickly compare companies and pricing. 

To get the rate even lower you can discuss adding an insurance policy for your home, if you don’t already have one.  More insurance companies will compete to quote the ring, if in combination with insurance for your residence. 

But again, even as a standalone policy, an independent agent can find the most competitive pricing in the shortest amount of time. 

4. Determine the Value

It is recommended that the ring be insured for an amount equal to what it would cost to replace.  This might be lower than the retail price your jeweler suggests for your ring if you managed to purchase it wholesale. 

In any event, the amount you spent on the ring is likely the best indication today of replacement cost.  This will need to be verified with either an invoice, bill of sale or an appraisal from a jeweler, which includes a full description of the item.  Your jeweler should be able to provide this to you.  

Remember, your objective should be to be able to replace the ring with like kind, quality and cost.  Jewelry should be re-appraised periodically, with the insurance adjusted accordingly to reflect changes in values.  

5. Ask for Discounts

Discounts are available through some insurance companies if the ring is kept in a bank vault or a  safe at home.  And the more policies you bundle together, the lower the insurance rates can go. 

Given each person’s unique set of circumstances, it is recommended you get guidance from an independent insurance broker when making your decision on insuring jewelry or any other special article.

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