There’s no doubt that the holiday season is a popular time to get engaged. And that your new ring is beautiful and signals your newly engaged status. But did you ever consider what you would do if the ring was stolen, lost or damaged?
Most standard homeowners insurance and renters policies only cover jewelry up to a specific dollar amount. This amount, which is known as a sublimit, applies to high-value items that are targets for theft. Usually the sublimit for lost or stolen jewelry is $3,000. That sublimit applies to any single piece of lost or stolen jewelry as well as the total amount of all lost and stolen jewelry.
With the average engagement ring costing close to $6,000, many couples wisely decide to individually insure their engagement rings. This is known as “scheduling” a ring.
When you schedule a piece of jewelry like an engagement ring, your ring is no longer subject to sublimit of $3,000 for jewelry. A special endorsement you can buy insures it for its true value, so you’re covered if the ring is lost or stolen. You can save money on your premium by naming a deductible – or you can choose to have no deductible. Your insurance agent can help you with that.
Insuring your ring for the right value
Always save the receipt for your ring and any appraisals you have done on it. They can both give you an idea of how much you should insure your ring for.
Not sure if you should get an appraisal? Fortunately, there’s a rule of thumb for deciding.
A general guideline is if the jewelry is less than $7,000 and / or newer than seven years, then no appraisal is needed.
One issue to keep in mind is that rings – especially ones that contain gold or diamonds – generally appreciate in value over time. For that reason, it’s a good idea to get your ring reappraised periodically to make sure you’re insuring it for the right amount.
We also recommend getting your ring cleaned and inspected on a regular basis. Losing a ring – or a stone from the setting – is more common than a ring being stolen. Many times that can be prevented by having your ring properly cleaned and inspected. A professional can tell if the prongs are becoming loose and fix the problem.
Getting the right coverage
Your jewelry store may offer to insure your ring. If they do, they most likely will be selling a policy underwritten by a smaller company. Your jeweler isn’t an insurance professional, so he or she might not be able to accurately answer questions about the coverage. To get accurate answers about insuring your ring, it’s a good idea to talk to an insurance professional like Goodwill Financial.