So you’ve decided to get your jewelry insured, that’s great! But you’ve probably heard so many opinions and stories about how to insure wedding ring bands, engagement rings, and other jewelry that it’s a bit overwhelming. And there is even false information about insuring an engagement ring that gets passed around and eventually becomes a myth that people believe is true. Engagement ring insurance is often misunderstood. Let’s dive right in and bust some of those false myths about engagement ring insurance.
Jewelry Insurance Is Expensive
You might be surprised to learn that the cost to insure jewelry insurance is really not that expensive. Compared with the price of replacing the ring without insurance compensation, insurance is very cheap. Jewelry insurance costs approximately 0.5%-3% of the value of the jewelry. For example, insurance for a $5,000 engagement ring would cost $25 to $150 a year. You can pay the insurance monthly, or pay it annually and get a discount. Another way of working out how much jewelry insurance will cost is to calculate $1-$2 for every $100 of value, paid annually. There are a number of factors that go into determining the cost of jewelry insurance including where you live, and whether you have a home security system. You can go online and get a free quote for jewelry insurance.
You Don’t Need Jewelry Insurance If You Have Homeowners Insurance
It is possible to include your engagement ring in your homeowners insurance policy but it is not recommended. Homeowners insurance will not cover the whole cost of replacing or repairing your engagement ring if something happens to it. Jewelry is considered high-value property because it can be easily lost or stolen. So homeowners insurance only gives it limited coverage (usually up to $1000-$2000). Unlike stand-alone jewelry insurance, homeowners insurance does not cover every kind of risk that could happen to jewelry. You can add a “floater” for your jewelry which will supplement the coverage, but this means paying more. If you’re going to pay more anyway, why not get a specific policy for your jewelry? And don’t forget that if you make a claim on your homeowners insurance it will go on your home insurance record and will affect your future home insurance rates. It is better, and safer to opt for a stand-alone jewelry insurance policy from a company that specializes in jewelry insurance.
When You Make a Claim on Jewelry Insurance You Get a Check
No, you don’t get a cash payout when you make a claim on your jewelry insurance policy. When you make a claim on jewelry insurance the compensation will cover the cost of replacing or repairing your engagement ring but it is paid directly to the jeweler. When you make an insurance claim for lost or damaged jewelry the insurance provider will pay the jeweler you have selected to replace or repair your ring. You’ll get a new ring or a repaired ring, but you won’t see any cash from the insurance policy.
You Can Only Make an Insurance Claim When the Ring Is Lost, Stolen, or Damaged
This is true for some jewelry insurance policies but some insurance providers offer preventative maintenance. This means that even if your jewelry has not been lost, stolen, or damaged, you can still claim for work done on the ring such as tightening the ring setting, straightening bent prongs, or replacing a clasp on a necklace. The insurance company will pay for this because it could prevent the loss or damage of the ring in the future. Not all companies provide this perk so shop around online for a dedicated jewelry insurance company.
The Purchase Receipt Is Enough Proof Of the Ring’s Worth
In rare cases, the purchase receipt could be enough to prove the value of the jewelry but generally, you need to get an official evaluation by a professional appraiser. Ideally, you will have the purchase receipt and an appraisal certificate.
Only Expensive Jewelry Needs Insurance
Experts recommend insuring all jewelry valued at $1,000 or more. Ask yourself whether you could afford to replace the engagement ring if something happened to it. If the answer is no then you need jewelry insurance.