When you finally find that gem of a person you want to spend the rest of your life with, getting a new rock to solidify your affection may be the perfect next step. But should you get engagement ring insurance (sometimes called jewelry insurance), to boot? We’ve created this complete guide to help you decide for yourself.
Spoiler alert: if you’re buying a Michael-Scott-sized diamond ring for the special “Holly” in your life, you may want to look into ring insurance.
What is Engagement Ring Insurance?
Just as it sounds, engagement ring insurance is a protection policy for your engagement ring. In the event your ring is lost, stolen, or damaged, the insurance policy helps cover the cost to repair or replace it.
You can also add other pieces of fine jewelry to your engagement ring insurance policy. Keep in mind, however, that this will increase the cost of your premium.
How Much Does Engagement Ring Insurance Cost?
Engagement ring insurance typically costs around 1% to 2% of your ring’s value. So, for example, if your ring is worth $3,000, you could expect to pay around $30 to $60 a year to insure it. If you’re looking at a $10,000 ring, it’d be around $100 to $200 a year for insurance.
The average engagement ring costs around $6,000, according to The Knot 2021 Jewelry and Engagement Study, meaning the average person can expect to pay around $60 to $120 a year to insure their ring.
But as always, how much you should spend on an engagement ring is entirely up to you.
Read more: How Much Should You Spend on an Engagement Ring?
Who Pays for Engagement Ring Insurance, Me or My Partner?
The short answer is: whoever is in possession of the ring should pay for the insurance. If you’re still hanging onto it because you haven’t popped the question yet, you need to cover it. But once the ring is on your significant other’s finger, it’s on them to get it insured.
Here’s why: if the ring is insured under your name but it slips off your partner’s finger or gets stolen from their apartment, it won’t be covered under your insurance because it happened while they had the ring.
The good news is, if you live together, you can easily add the other person to your policy as an additional insured person — even if you’re not married. Once you tie the knot, both persons are automatically covered under one policy because you’re seen as one entity.
What Does Engagement Ring Insurance Cover?
No two engagement ring insurance policies are alike, but in general, engagement ring insurance covers the amount of money you’d need to replace or repair your ring should it get lost, stolen, or damaged.
The word “damaged” is super important here. If you wear your engagement ring every day, damage is bound to happen. You may lose a stone while sleeping or working out at the gym, your band may crack or break due to normal wear and tear, or your entire ring may snap in two while playing tug-of-war with your dog at the park.
A policy that only covers theft or loss isn’t worth it. Real life happens and although it’s totally possible to lose your ring on vacation, or have it stolen, damage may be your no. 1 culprit to watch out for.
Remember: read the fine print before you buy. You’ll want to know which situations are covered under insurance and which ones aren’t. Here are two fine print clauses that you should pay particularly close attention to:
1. Ensure Your Policy Covers You While Traveling Abroad
Some engagement ring policies won’t pay if you lose, break, or have your ring stolen while traveling abroad. (Shocking, I know.)
Before signing on the dotted line, make sure that your policy will cover you while traveling abroad, especially if you are a frequent traveler.
2. Ensure Your Policy Insures Against Damage
Depending on your policy, your insurance could only cover you if your ring is lost or stolen. Some insurers don’t offer protection for damage, so you’re on your own if your diamond falls out or your band breaks.
Think through which situations could impact you the most, and find an engagement ring policy that covers those instances. You may pay more money for certain added protections, but the peace of mind may be worth it if your ring can’t be easily replaced.
How Does Engagement Ring Insurance Work?
Engagement ring insurance usually works like this:
- You purchase an engagement ring insurance policy.
- You pay your monthly or annual premiums.
- You file a claim with the insurance company if your ring is lost, stolen, or damaged.
- Your insurance company works with you to repair or replace the ring. (You can also choose to get cash for the ring’s value if you don’t want to replace it).
Some engagement ring insurance policies have a deductible. Others don’t. If you want a cheaper monthly premium, you may opt for a policy that has a deductible. If you want your insurance to cover everything in full, you may go for a policy with no deductible, knowing you may pay a little more per month for it.
Who Should Insure an Engagement Ring?
If you’re still on the fence about engagement ring insurance, let me help you clear the air. Engagement ring insurance may be right for you if…
- You couldn’t afford to replace your engagement ring if it was lost, stolen, or damaged.
- It’s a priceless heirloom.
- You’re concerned about stones falling out or the band breaking.
- You hate the idea of wearing your ring out in public for fear of losing or breaking it.
- You’re financing the ring and still have years to pay it off.
Read more: How to Finance an Engagement Ring
Who Shouldn’t Insure an Engagement Ring?
On the other hand, you may want to skip engagement ring insurance if…
- You could easily replace your engagement ring if it was lost, stolen, or damaged.
- The ring doesn’t have a lot of sentimental value.
- Your ring was inexpensive and would be fully covered under your home or renters insurance if it was lost or stolen.
- You’re not concerned about the ring breaking or losing stones.
How to Get Engagement Ring Insurance
If you’ve decided engagement ring insurance is right for you, you’ll want to secure a policy as soon as you get the ring — perhaps even before you walk out of the store (or have it delivered if you buy online)!
Read more: How to Buy an Engagement Ring Online
Once you’ve found the perfect ring, go ahead and start the insurance policy process.
To do this, I recommend asking your current homeowners or renters insurance company if they offer jewelry insurance. If so, your insurance agent can add it to your policy and you can be rest assured your ring is protected.
Keep in mind, however, that most standard homeowners or renters insurance policies cap how much they’ll reimburse you for jewelry, and they don’t cover scenarios like mysterious disappearances or unexplained loss.
For example, your renters insurance policy may only reimburse up to $1,500 for fine jewelry. It may also have a clause that says it must be lost or stolen due to certain “perils” (such as theft or a natural disaster) in order to qualify for reimbursement. This means if your ring is worth more than $1,500 — or your ring slips off your finger while running errands — you won’t be fully covered.
The TL;DR? If you want your ring to be fully insured, you most likely need a separate rider or engagement ring insurance policy to cover it.
If your insurer doesn’t have a jewelry-specific policy, you should collect a variety of quotes from different insurers through an insurance marketplace. From there, you can decide what policy is right for you and apply for coverage.
Read more: What Does Homeowners Insurance Actually Cover?
What Documents Do I Need to Get Engagement Ring Insurance?
If you just bought the ring, the receipt should be all you need to prove its value and secure insurance coverage. If the ring is a family heirloom or wasn’t bought recently, you’ll need to get it appraised by a certified jeweler.
Where to Get Engagement Ring Insurance
You have two main options when it comes to engagement ring insurance:
- Add it as a rider to your current homeowners/renters insurance policy.
- Get a stand-alone engagement ring insurance policy.
The easiest route is option one (add it to your existing home or renters insurance policy).
One company offering up some of the best engagement ring add-on insurance is Lemonade. With Lemonade, you add your engagement ring as an “Extra Coverage” to your existing policy. There’s no deductible if you need to file a claim and it covers nearly everything, including accidental damage and accidental loss.
According to Lemonade, the only thing it doesn’t cover is normal wear and tear and damage caused by war/nuclear fallout (something I hope you and your shiny ring never experience).
What’s the Claims Process for Engagement Ring Insurance?
You’ll typically follow these steps when you file an insurance claim for your engagement ring:
- You file a claim online or by phone.
- The insurance company contacts you for more information.
- If the ring is unrepairable, you decide if you want a cash reimbursement or a replacement.
- The insurance company settles your claim.
- You get your repaired ring, a replacement, or cash — whichever you chose in the third step.
The Bottom Line
As you are deciding to get married, be sure to weigh the pros and cons to see if engagement ring insurance is the right decision for you.
If a big, sparkly ring with a high price tag isn’t your thing, you may be just fine to skip it.
If you’re just not sure, you can always get a quote to see how much it’ll cost — and then decide from there.
Featured image: Atsushi Hirao/Shutterstock.com