Engagement Ring Insurance – What You Need to Know

Have you ever wondered about insuring your engagement or wedding ring?  Today’s post comes to us from our friend and guest blogger, Rhett VanScoter of the VanScoter Insurance Agency in Greece, NY.

The majority of wedding engagements occur from Thanksgiving to Valentine’s Day.  This isn’t just some statistic that you read on the internet, I know this to be “fact” because my engagement fell in the window of loving bliss.  Jewelry stores love (pun intended) this time of year because this is when they do the most business.

I know when I went ring shopping, I’m sure the store clerk could see the hearts floating above my head and the bulls eye on my forehead.  Ring shopping for guys can be a stressful situation, not only are you trying to make a statement to your significant other on how much you love them and want to spend the rest of your lives together, but it also a statement to all of their friends and family.

When you tell people that you got engaged, the first thing they ask is to see the ring and the next is how did he propose?  So how much do you spend on a ring?  The so-called experts say 3 months salary.  When they talk about 3 months salary, they’re not talking about your take home pay after taxes, healthcare, retirement savings and other deductions, they’re talking about gross salary!  So it’s really more than 3 months salary.

That’s a lot of cash to be plunking down on a little rock.  When you make that big of an investment, you want to make sure that it’s covered.  I’m pretty sure that my head would physically explode if Christine’s engagement ring was stolen or the diamond fell out of the setting.

There are 3 options that you have to insure your 3 months salary that is walking around on your bride-to-be’s finger.

1.  If you have homeowners or renters insurance, your policy will usually provide coverage up to $2,500 if your ring is stolen.  Some policies may even go as high as $5,000.  This is the most basic of coverage.  If your engagement ring along with other jewelry is stolen, they are all going to be subject to the $2,500 or $5,000 limit.  You’ll also want to know if within that $2,500 or $5,000 limit if there is a per item limit.  Some insurance companies will only provide up to $500 or $1,000 per item limit.  Not only is the dollar amount limited, but most policies won’t provide coverage if the diamond falls out of the setting and is lost.  This happens more often than you think, it’s important to get your engagement ring cleaned and inspected by a jeweler regularly.

2.  You can list your engagement ring separately on your homeowners or renters insurance policy.  This is a better option than the first because you can insure the ring for the appraised value, so you won’t be stuck with the low limit of coverage built into the policy.  By listing your engagement ring separately on your policy you can also choose  a different deductible for your ring, you can even select $0 as your deductible for the ring.  Using this option to insure your ring will also provide you with broader coverage as well.  This would provide coverage if the diamond fell out of the setting and was lost or when you go swimming in the ocean on your honeymoon and the engagement ring falls off of your wife’s finger (true story, this happened to another couple at the same resort we went to for our honeymoon).

3.  The third option is to get a separate jewelry policy, just for your engagement ring.  This option is very similar in coverage options as #2.  The ring would be insured for the appraised value and would provide the broader coverage.  Most people would use this option if they didn’t have a homeowners or renters insurance policy.  Maybe you still live with your parents so you don’t have a need for either of those policies.  Or you could get a separate policy, so if you do end up having a claim related to your engagement ring, you won’t affect the rates related to your homeowners or renters insurance policy.

So after you empty out your bank account, make sure that ring is insured!  If you would like us to review your insurance to make sure you are properly covered and provide you with a no obligation quote, give us a call at 585-663-2004.

Rhett VanScoter is the owner of VanScoter Insurance Agency, LLC, located in Greece, NY.  He is an independent agent that represents multiple insurance companies providing auto, home, renters, condo, business insurance and much more.