Protect that bauble: engagement ring insurance

Engagement ring insurance can protect your bauble in the event of a worst-case scenario…

So you’ve taken one of the biggest steps of your life by buying a ring and proposing to the woman of your dreams. This is where practical considerations come to mind… Like, what if my wife is washing her hands and the ring slips down the drain. Or what if the diamond falls out of the setting. Or what if the dog somehow swallows it.

There are different types of jewelry insurance. You should carefully examine each policy to determine what is right for you. Each varies in annual fees and fee procedures.

Many people rely on their homeowner’s/renter’s insurance to cover them in the event of a jewelry mishap. Unfortunately, the homeowner’s or renter’s insurance may not or not fully cover the cost of a lost or stolen diamond. However, you’ll want to review your policy thoroughly to discern exactly what is covered and what is not. It is common for home/rental insurance to cover between $500 and $1,000 for jewelry theft. However, such policies may not cover damaged or lost engagement rings or anything that happens to the ring away from home.

A replacement policy will reimburse the cost of replacing the ring with an identical new piece (ie, comparable diamond size, setting, and metal) at the current market value.

Current value insurance policies are the most popular among consumers and also the cheapest. This type of insurance policy replaces the cash value of your engagement ring, but deducts for impairment. In other words, if you have a $3,000 engagement ring, but it’s four years old, money will be deducted from the value of the ring based on wear and use.

Valued on Policies are rarer and more expensive. You set the value of your ring, which can be even higher than the appraised value, taking into account factors such as emotional sentiment. If something happens to the ring, the insurance will reimburse you for the value you put the ring on.

Ask the jeweler where you bought your ring for insurance policy recommendations. They may have relationships with insurers and may be able to offer you a discounted policy. Also look around the internet to see what deals you can find. Be sure to research the company with the Better Business Bureau to see if they have a solid reputation historically

Here are some questions to ask potential insurers:

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– Is there a deductible and how does this affect the costs?

– What kind of paperwork do I need to provide?

– Under what circumstances is the ring covered?

– Is the ring covered for the full replacement cost?

– Will the settlement be in cash or for a replacement ring?

– Are repairs for damaged rings covered?