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.
The biggest addition to coverage that you get with a floater or endorsement is that the ring will be covered if it's lost. Insurance companies call this "mysterious disappearance." It means that you don't need to know what happened to the ring or have a police report showing it was stolen.
It covers the ring for the agreed value based on the appraisal you provided.
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 is engagement ring insurance?
The cost of an engagement ring insurance endorsement will vary among insurers. 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.
Prices can differ significantly, so it's recommended to obtain home insurance quotes from multiple insurance companies and compare coverage and costs to find the most affordable option that meets your specific needs.
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:
- When you take off your ring, always put it in the same place. A ring-holder can be helpful.
- Don't place your ring on the counter next to the sink when you wash your hands — unless the drain opening is covered.
- Sunscreen is slippery, so consider leaving your ring at home when going to a beach or pool.
- 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.
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