Congrats - you're engaged! You have a shiny new ring on your finger (which you probably can't stop staring at), and are excited to show it off! After calling your family and friends to share the good news, one of the next calls you should make is to your local insurance agent to get ring insurance to protect your new bling.
In this post, we'll define what ring insurance is, what it covers, how it differs from other types of insurance you may already have, and what it typically costs.
What is Ring Insurance?
Ring insurance is a product you can purchase to protect yourself from financial loss if something happens to your jewelry. Local State Farm agent Kaitlyn Raymond explains that her agency provides a specific insurance policy called a Personal Articles Policy which couples can purchase to protect the ring from situations like loss, theft, or damage. "The benefit of this policy is that it provides clients coverage on an all perils basis," explains Kaitlyn. "This offers much broader coverage than a home insurance policy, which is insured on a 'named only' peril basis."
A Personal Articles Policy can also cover other jewelry, such as wedding bands or watches, and other valuable possessions, such as a camera or laptop.
Why is Ring Insurance Important?
Not to freak you out, but imagine you put your ring down to wash something... and you can't find it. Or you get home from an afternoon biking and realize somewhere, somehow your diamond fell out. Yikes.
Obviously, losing a piece with such sentimental value is a blow emotionally - and nothing can fully protect you from that. However, ring insurance can protect you from the financial burden of wanting to replace that ring.
During a season in which couples tend to be on a tight budget (think: paying for your wedding, honeymoon, maybe a house, etc.) replacing an engagement ring out of pocket may not be financially feasible. That's where insurance comes in.
How does it work? You pay a small fee (called a premium) to the insurance company in exchange for coverage (a policy). If something happens to the ring, the insurance company will handle the financial burden of replacing it.
How is Ring Insurance Different from Homeowners or Renters Insurance?
Homeowners insurance or renters insurance typically covers the policyholder from specific named perils such as a fire, theft, wind etc. "Those policies are really intended for catastrophes," says Kaitlyn.
While it may feel catastrophic, losing your engagement ring is not a covered loss under a homeowners or renters policy. By contrast, a Personal Articles Policy provides protection against all possible perils including theft, loss, and damage. Misplaced your engagement ring while cleaning? That's a covered loss. Broke a prone and lost the center diamond while gardening? Covered. Had your hotel room broken into and your ring stolen? That's covered too. In short, this kind of policy covers pretty much everything.
How Much Does Ring Insurance Cost?
The cost of a ring insurance policy varies based on the overall value of the items covered. However, it's typically very affordable. Kaitlyn says most clients pay as little as $5 a month to insure their engagement ring.
How Do You Get Ring Insurance?
Getting your engagement ring insured is a quick and simple process. You can apply for ring insurance as soon as the ring is purchased. Kaitlin recommends getting coverage as soon as possible. "The number one claim is forgetfulness...people taking the ring off and losing it," she says. "These claims usually happen within the first few weeks because people aren't used to paying attention to their ring yet!"
If the ring is over $5,000 you'll need an appraisal to submit with your application. Typically you can get this directly from the jeweler.
Say Yes to Peace of Mind
Ring insurance is a smart buy to protect yourself against a major possible financial loss. For a small cost, you can rock your ring with confidence, knowing that if something were to happen you'll be covered.
If you're looking for a unique gift for a newly engaged couple, an IOU for ring insurance is an awesome gift. While the couple would have to apply for coverage themselves, you could write a check for an average policy cost ($60) with a memo to put it toward insurance. (Maybe send them this article too!) It's not something all couples think about automatically, and for less than the cost of an InstaPot you'll be gifting them with peace of mind.
Thank you to Kaitlyn for helping us break down ring insurance! She's available to answer any specific questions you have about your insurance needs.