It’s common for couples to ask questions regarding insuring an engagement ring, and jewelry insurance can be a little confusing for anyone new to this topic. To help, we’ve provided a general outline of how to this process works as well as tips to help you along the way.
The first thing you will need is an appraisal. The appraisal, typically performed by a GIA graduate gemologist, is a document that provides all the specifications of the ring, as well as a photo or photos, and will state the ring’s current retail replacement value. A good appraisal will document the piece in great detail with measurements, weights, stone grading, a narrative description, and photos. Some jewelry stores will include a complimentary appraisal with the ring, or you can take the ring to a third party jewelry appraiser, who will evaluate the ring and create an appraisal for you.
The appraisal is provided to the insurance company and is used as the basis for insuring the ring as well as potentially replacing the ring, in the case it is lost or stolen. It is recommended that you have the ring reappraised every five years, to accommodate rising diamond, gold, platinum, and labor prices and to readjust the ring’s current retail replacement value.
A good insurance policy should cover theft, loss and damage, such as a diamond falling out. Typically you can insure the ring through your home or renter’s insurance policy, but you should check with your insurance agent to make sure. Another option is taking out a specialty policy for your jewelry. A recommended specialty insurance company is Jewelers Mutual, which offers personal jewelry insurance and is endorsed by reputable groups such as the American Gem Society and Jewelers of America.
Regardless of whether you choose to umbrella the ring under your current policy or take out a new policy, be sure to review the policy carefully and always read the fine print. Make sure you understand the limits and terms of coverage. Some insurance companies will replace the lost ring with something as similar to the original as feasible, whereas others will issue you a check. Be sure to ask about the insurance company’s replacement procedures before you buy.
We hope you’ve found these insurance tips helpful. Don’t be afraid to ask questions when shopping around for a policy, and always read the fine print!