Engagement ring insurance: How does it work?

What is engagement ring insurance?

Engagement ring insurance is a specialized jewelry insurance policy that provides insurance coverage specifically for that piece of jewelry. It is used when the value of a ring exceeds the jewelry limits on your homeowners or renters insurance policy. It is either an endorsement on your home policy or a standalone floater.

This type of jewelry insurance policy covers the item listed on the policy for its appraised value. Insurance coverage for jewelry on a standard homeowners or renters insurance policy is limited, usually to $2,500. Jewelry insurance riders or floaters provide comprehensive coverage for expensive jewelry, including for loss or damage.

Does homeowners insurance cover engagement rings?

Yes, homeowners insurance includes coverage for an engagement ring, but the coverage on a standard policy is limited.

“Beyond the sentimental value of jewelry, they are often some of the most valuable items in a customer’s home and it is important to ensure that they are protected,” says Sarah Jacobs, Nationwide’s vice president of personal lines product development. “An agent can help you understand how jewelry is covered under your homeowners or renters policy, as larger items like engagement rings may exceed the basic limits.”

You can increase the limits of your coverage for jewelry in general or fully protect your engagement right with a scheduled personal property endorsement or a separate policy called a floater.

How does engagement ring insurance work?

Engagement ring insurance is a special endorsement on your insurance policy that insures the ring for its appraised value. You'll need to take the ring to be appraised (if you just bought it, an appraisal may have come with it) and provide that information to the insurance company.

You'll pay an additional premium, and the endorsement will have a specified deductible. Once in place, this endorsement will pay the full value of the ring minus the deductible if it's lost or stolen.

You can also purchase jewelry insurance as a standalone policy known as a floater.

What does engagement ring insurance cover?

Standard home insurance has limits not just on the amount it will pay for your jewelry but also on what type of loss it will cover. Generally, home insurance covers theft and damage from covered perils, like fire.

A floater or endorsement will cover more types of loss, including

• Mysterious disappearance, covering any situation where you don't know what happened to it
• Loss, even if you just forgot it somewhere
• Theft anywhere in the world
• Lost stones
• Damage, including to prongs and settings

Furthermore, you ring will be covered for its appraised value, with no depreciation.

How to get insurance on an engagement ring

As soon as you have the ring in your hands (yes, even before the proposal), you should contact your home insurance company to get it covered. Based on the value and the available coverage on your policy, the company will recommend one of the two following options.

Add jewelry coverage through an endorsement or floater

As discussed above, an endorsement or special schedule can give you significantly more coverage. For a high-value engagement ring, this is the best course of action as it will insure the ring for it's actual value

You'll need an appraisal to prove the value, and the insurance company may ask for an updated appraisal when it renews.

Raise the limit of your jewelry coverage

Another way to make sure your jewelry gets additional protection is to raise the limits on jewelry on the base policy. This will provide a higher blanket limit, which means the overall limit for all of your jewelry.

This may be an acceptable option if the engagement ring's value fits within the available limits, but remember that the limit you choose covers all of your jewelry. Consider the value of other jewelry before you decide this is the way to go.

How much does it cost to insure an engagement ring?

Engagement ring insurance cost will vary among insurers and depends on the value of the ring as well. Many plans charge between 1% to 2% of the scheduled jewelry’s value. For example, it might cost $50 annually for an endorsement on a $5,000 ring. However, the deductible assigned to particularly expensive jewelry pieces might be higher than that for other personal property.

It's usually cheapest to insure your ring with the company that insures your home, but it's worth exploring quotes from other companies that write standalone jewelry insurance policies. Jewelry insurance cost is generally affordable and worth the investment if you have a particularly valuable ring.

How to file an engagement ring claim

To file an engagement ring claim, follow these steps:

• Contact your insurance company's claims department
• Provide details of the loss, including when and where it happened
• If you have recently had your engagement ring appraised, provide that documentation
• Follow any instructions provided by the adjuster, including providing any additional required documentation, such as a police report for theft

You will receive a payout based on the terms of your policy, minus your deductible.

Best practices for safekeeping jewelry

A little common sense and a healthy dose of extra caution can go a long way toward protecting your jewelry so you never have to make an insurance claim. Here are some tips for keeping your jewelry safe:

1. When you take off your ring, always put it in the same place. A ring-holder can be helpful.
2. Don't place your ring on the counter next to the sink when you wash your hands — unless the drain opening is covered.
3. Sunscreen is slippery, so consider leaving your ring at home when going to a beach or pool.
4. Resize a ring that doesn't fit. A loose ring is more likely to fall off.

Insurance can never replace the sentimental value of an engagement ring, but it can give you some peace of mind and protect your investment.

Helpful home insurance tools and calculators

• Home insurance calculator
• Condo insurance calculator
• Renters insurance calculator
• When to file a home insurance claim