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Engagement Ring Insurance Breakdown & Advice

While insurance definitely isn’t the most romantic part of a proposal or engagement, it will be helpful to you if you do happen to lose or damage the engagement ring. Much like any valuable item you have, whether it’s a car, a house or even your health - an engagement ring is also another thing that requires insurance.

While the hurt of the loss isn’t something can be quite as easily fixed, it may give you some peace of mind knowing that you won’t be left completely empty handed. So what are some things you should know about engagement ring insurance?

When should you get it?

We would recommend as soon as possible - as long as your ring has been purchased and within yours or your partner’s possession you should endeavour to get it insured and protected.

Choosing a coverage provider:

When it comes to insuring valuables like jewellery, you can purchase an extension of your homeowner’s or renter’s insurance called a ‘rider’. This will cover your engagement ring specifically. If you don’t have renter’s or homeowner’s insurance, you can take a policy through a company that specialises in jewellery protection.

Another type of cover worth researching is a ‘personal effect cover’, also known as the ‘portable contents insurance’ - which is an upgrade of your Home & Contents Insurance. You can choose between ‘unspecified portable effects’ or ‘specified portable effects’. Unspecified usually has pretty low limits, which may not necessarily cover the cost of the ring. If specified, then a specialised quote will be generated based on the value of the ring.

The drawbacks of insuring your ring with ‘portable content insurance’ is that they generally choose which jeweller to repair or replace your ring at, and because they aren’t jewellery experts - they won’t be able to gage the true value of your ring and gemstones, even if there are fluctuations in the market. This is why it might be worthwhile sourcing a specialist insurer.

How is the price of your engagement ring insurance determined?

The type of cover you choose is one of the many factors that will determine the cost of your insurance. Specialist jewellery insurers will generally cost more than if you added personal effects to your home & contents insurance.

It will also depend on factors including where you live and whether it’s an area with a higher rate of theft, as well as the value of your ring - as the more expensive it is, the more it costs to replace, therefore the higher the premiums.

Estimated costs to insure rings are usually between $1-2 for every $100 that your ring is worth & would cost to replace. So if you had a $10,000 ring, you could expect to pay $100-$200 on top of your annual home & contents insurance.

Ask the right questions

This will ensure that you get compensated correctly or have less issues processing a claim in the case of an accident.

For example, you may want to question:

  1. What proof is required that you lost your ring?
  2. Can you choose who repairs your ring?
  3. Will you continue to be insured outside of the country?
  4. Are there any circumstances that aren’t covered?
  5. Are you covered for damage? Or just theft & loss?

There are many other questions that you should ask before you determine the right provider. Make sure you do your research to make sure that you have all your bases covered.

Get an appraisal

You can’t protect your ring if you don’t know how much it’s worth. A thorough appraisal will identify the value of your ring through the cut, clarity, colour, carat - and a variety of other factors.

Engagement Ring Insurance Traps to Avoid!

One of the biggest traps that people easily fall into when it comes to insurance is believing that they are fully covered without looking at the limits. So don’t be one of those people who go through the effort of valuing the item correctly, finding a cover that seems to be perfect, but forgetting to read the fine print.

For example, your ring may be valued at $8000, and your insurance may cover $10,000 for personal effects… However, then the fineprint may state that there is a $1000 limit on claiming back on any one item listed under your personal effects. So you may in fact only be able to get back $1000, which isn’t even close to covering the cost of your ring!

Another thing to check is where & at which jeweller you will get your ring replaced in the case of loss. Many insurance companies tend to have a large network of jewellers, allowing them to gain large discounts. So if your ring was originally valued at $8,000 - your ring might be replaced by one that is half that cost. And even if you opt for a cash settlement, you may find that the value you receive will be less than that of your ring originally. See if you’ll be able to get the ring replaced at a jeweller of your choosing.

  1. Get it valued
  2. Review your policy (especially the fineprint!)
  3. Choose a specified personal effects cover, rider, or research more about specialist insurers
  4. List your engagement ring on that cover - as well as any high-cost items if necessary
  5. Provide a valuation certificate
  6. Pay your premium - purchase your policy & enjoy peace of mind knowing your engagement ring if covered

Maybe you’ve already bought an engagement ring, or maybe you’re still looking? GoldeNet has a range of customisable options that are perfect for everyone! If you need some more advice on engagement ring insurance, don’t be afraid to speak to one of our friendly staff. Having been in the business for so long, they will be able to point you in the right direction when it comes to getting your ring insured! Call us today on 1800 361 873 or visit us in our Brighton showroom!