Congratulations on your Engagement! Have you insured the ring?
Updated: Feb 26, 2020
With all the excitement of this happy occasion, you may not be thinking of something happening to the shiny new addition on your left hand. But, what happens if it's misplaced, stolen or damaged? Insurance can offer financial protection and peace of mind when you need it most.
Not sure where to start? Here's everything you need to know:
1. Get a Diamond Certificate or Grading Report
If your center stone is around half a carat or larger, your jeweler will often provide a diamond certificate or grading report from an independent gemological laboratory like the Gemological Institute of America (GIA), the organization that founded the "4Cs" used to evaluate diamonds: color, cut, clarity, and carat weight. This assessment of quality—while not an appraisal—lists all of the measurements your appraiser will need to make the most accurate determination of value. (This detailed information can also help track down your specific diamond if it's ever stolen.)
2. Get an Appraisal
You can't protect the value of your ring if you don't know its worth. "A thorough appraisal will include the carat weight, cut, color, and clarity of all the diamonds; the carat weight and shape of any colored stones; the metal type and fineness or karat; as well as any identifying marks, hallmarks, or stamps," says Elizabeth Doyle, president and co-founder of Doyle & Doyle. Most insurance companies will require an appraisal for higher value pieces (for example, rings worth $5,000 or more) while an invoice or receipt suffices for less expensive items.
3. How to Choose a Coverage Provider
If you already have homeowners' or renters' insurance, you can add a rider to cover the ring specifically. If you don't have homeowners' or renters' insurance, there are independent companies that specializes in jewelry insurance.
4. How Much Does this Insurance Cost?
The cost will depend on the value of the ring and how much coverage you desire. Important questions to ask when choosing a policy are:
Can you choose who repairs your ring?
If you're insured for replacement (instead of a cash payout), where can you purchase a new ring?
What happens if a suitable replacement cannot be found?
How will you need to prove the ring vanished if you make a claim?
Are there any circumstances that aren't covered?
Will you continue to be insured when out of the country?
Are you covered for damage or just loss and theft?
Will the policy adjust according to inflation?
5. Remember to Reappraise
Your ring is a valuable investment and, as with most investments, values typically increase over time. It's important to have your ring reappraised every two to three years to be certain it's insured properly.
As you take this next step in your life's journey, think about reevaluating all of your insurance. As newlyweds, you may have moved to a new home or you may save money by combining your auto policies. Additionally, you may want to consider life insurance coverage to provide financial security to your loved one in the future.