After all the anticipation, there’s nothing as exciting as seeing that shiny new ring on your left hand. (Go ahead, look at it again before you keep reading!) So now that you’re wearing an engagement ring every day, you’ll do just about anything to keep it safe. And when it comes to protecting this (incredibly valuable) symbol of your love, the first thing that comes to mind is engagement ring insurance. You may have shopped for insurance before, whether it was to cover your doctor visits or to protect your home or car, but is the process of getting jewelry insurance the same? And unlike those other major types of coverage, do you actually need to insure your engagement ring?
If you’re considering engagement ring insurance, check out this helpful Q&A.
What is jewelry insurance?
Jewelry insurance provides coverage if your ring is accidentally lost, damaged, stolen, or mysteriously disappears. Jewelry insurance companies, like Jewelers Mutual, offer comprehensive coverage that goes above and beyond what your standard homeowner’s or renter’s policy covers. With jewelry insurance, you can cover the full value of your engagement ring, purchase coverage that goes with you anywhere in the world, choose the jeweler who will provide repairs or replacements, and get a replacement ring of the same kind and quality of the original in case of loss or theft.
Can’t I just add my jewelry to my homeowner’s policy?
You can, but there are limits to a homeowner’s policy. Your jewelry will only be protected against specific causes of loss, and up to a specified dollar amount. If you do decide to add jewelry to your homeowner’s policy, opt for a jewelry-specific rider that includes the full replacement value against most causes of loss.
So what’s the difference?
Homeowner’s policies will send you a check for the amount your jewelry is insured for, in the event of a loss. It will be up to you to try to get something similar to what you had before.
A jewelry-focused insurance company will work with your jeweler of choice to find a same-kind-and-quality replacement for your jewelry. That means all the work is done for you by someone who specializes in fine jewelry.
A jewelry claim against your homeowner’s policy could affect your entire policy: Your premium could go up or your eligibility could be affected at renewal.
With a standalone jewelry policy, those small and easily misplaced valuables are covered separately from the rest of your belongings, meaning your homeowner’s policy isn’t affected.
After getting engagement ring insurance with a homeowner’s policy, you’ll likely set it and forget it -- meaning the insured value will stay the same, even if the market value of your jewelry changes. That makes it nearly impossible to get a claim payment that’s significant enough to repair or replace your jewelry.
An insurer that specializes in jewelry, like Jewelers Mutual, understands the market, so they have an annual Insurance Value Adjustment (IVA) to help ensure your coverage limit matches what it would actually cost to replace your jewelry in today’s market. (This is basically a percentage increase in your coverage limit -- and consequently, your premium -- meant to keep you from being underinsured. You can opt-out if you choose.)