Engagement Ring Insurance

While engagement ring insurance may not be something that you think of right away when purchasing an engagement ring, it is definitely something to take into consideration. Undoubtedly you will be spending a significant amount of money on the purchase of an engagement ring and the ring will hold a great deal of sentimental value so it would be advantageous to protect your investment.

Why Should I Buy Engagement Ring Insurance?

If you are wondering why exactly you should purchase engagement ring insurance you should think about the fact that you insure other items you buy which cost you a good deal of money. Also, considering the fact that the ring will be worn daily it will become vulnerable to everyday wear and tear which could result in the diamond or gem being loosened and lost. Plus, the engagement ring could become lost while being worn and not having insurance means that you will not receive any money to replace it.

Even though most people are careful with their engagement rings, accidents can and do happen. Even the most diligent people have damaged or lost their engagement rings and for those who did not have engagement ring insurance, the expense of replacing the ring was a burden. All kinds of scenarios can happen with an engagement ring which could result in it becoming damaged or lost. Just bumping into a hard surface could loosen the setting or could even cause the diamond to fall out. If you enjoy an occasional swim now and then the water could result in the ring slipping off your finger without you even realizing it. Rings also have been known to fall off and end up in drains or even toilets. These types of occurrences are not rare as they do happen so it is essential to have engagement ring insurance to protect your valuable ring that means so much to you.

While your homeowner’s or renter’s insurance may provide you with some coverage, it is typically not sufficient. This type of coverage may not cover all circumstances regarding the loss or damage of your engagement ring. Also homeowner’s or renter’s insurance features low limits which typically do not exceed $500. It is therefore a much better idea to buy special engagement ring insurance offered by a insurer that specializes in jewelry insurance.

Cost of Engagement Ring Insurance

The cost of engagement ring insurance varies depending on a few factors. First of all, insurance rates vary considerably from one state to another. If you happen to live in a high-crime area you can expect to be charged more for engagement ring insurance than you would be if you lived in a proven safe geographical location. And of course, insurance companies themselves charge different rates so you will have to shop around a bit to find a good policy that you consider to be affordable. Generally speaking, engagement ring insurance rates are quoted per $100 worth of coverage and a typical rate is one or two dollars per $100 or 1 to 2 percent.

It is also possible to tack your engagement ring insurance onto your current homeowner insurance through something that is referred to as a ‘rider’ or a ‘ring rider’ extension. Before you call your insurance company to take out an extension, it is a good idea to shop around a bit as you may find that buying a separate engagement ring insurance policy is the wise thing to do. You might be able to take advantage of a discount offered by your home/car insurer but if none is available, look for a company that offers special jewelry insurance.