You're not required to insure your engagement ring, like you are with your car. So if you're going to make the (smart) choice to invest time and money into ring insurance, make sure it's for the right amount by getting a quality appraisal and covering the ring with the right policy for you.
A common misconception is that Standard jewelry coverage on a homeowners policy will cover a lost, damaged or stolen engagement ring but homeowners or contents insurance almost always has a monetary reimbursement limit, generally in the ballpark of $1,500. Considering the average cost of an engagement ring is nearing $6,000, there's no way you could replace yours with the small allowance afforded from standard homeowners coverage.
Also, a jewelry claim on your homeowners policy could increase the premiums for your entire policy - an increase that could stick with you even if you part with the jewelry you submitted a claim on.
In this post care of Bridechilla Partner, Jewelers Mutual Insurance Group, we share some quick tips to give you peace of mind and ensuring that your valuable and precious jewelry is appraised and covered correctly.
Photo by Gades Photography
Who insures the engagement ring? Bridechilla or Groomchilla?
The answer? Either. (Or neither! Anybody can.)
The ideal person to insure the engagement ring is whomever has it in their possession first. You can even apply for jewelry insurance right on your phone before you leave the jeweler.
As the ring purchaser, being in charge of such a small, valuable, important item can feel like taking the fate of the entire world (or at least your relationship) into your own hands. What do you do with it before you propose?
What happens if you lose it or it gets damaged?
Many soon-to-be-proposers come up with unique hiding places (really, a safe-deposit box is best), but the most important place to have the ring is safely documented on your jewelry insurance policy.
If you are on the ring-receiving end, your first wedding planning question should be: “Is this ring insured?”
A lot can happen between the day you're engaged and the day you're married (and beyond), especially if the ring hasn’t been sized yet and/or you aren’t used to wearing it on a regular basis.
Photo by Bridget Flohe
The Importance of Jewelry Appraisals for Insurance
Any time you insure something, you need proof of the item's value and characteristics in order to replace it, whether with a same kind and quality equivalent or cash.
In the case of jewelry, if you have an inaccurate appraisal, you may not recover enough funds from an insurance claim to actually replace your piece at fair market prices.
If you have an incomplete appraisal, what you know to be your cherished jewelry may not be how the insurer interprets the brief description of your piece.
Either way, you can wind up without an equal replacement for the jewelry you've been paying premiums to insure year after year. Kind of defeats the purpose, right?
Photo by Scott Webb
Details Insurers Look for on a Ring Appraisal
Your insurance company uses your appraisal to set the coverage limit on your policy. Basically, it helps them decide how much they'll pay out in the event of a claim (which also decides how much your premium is).
When you have a repair or replacement policy, rather than a traditional cash-payout, you definitely need all these details:
- Description of the ring
- Type of metal the stone is set in
- Stone information – think 4 C's: cut, color, clarity and carat weight
- Side stone information
- Value of the jewelry
If your insurer doesn't know exactly what your ring looked like before, how can they replace it with same kind and quality?
Tips for Getting a Good Ring Appraisal
Not all appraisals are created equal. Here are some tips to make sure you get a good one:
1. Ask your jeweler for an appraisal, insurance evaluation or detailed receipt right away – it will save you the trouble of having to go back and ask for one later.
2. Make sure the jeweler or appraiser uses official business letterhead with their contact information in case your insurer has questions.
3. Ask your jeweler or appraiser for their credentials. Not just anyone is qualified to give appraisals. Don't know where to start? Check American Gem Society, the National Association of Jewelry Appraisers or Gemological Institute of America for a list of qualified appraisers.
This is a sponsored post in conjunction with Jewelers Mutual.