Should You Insure Your Wedding Rings?

Yes, for rings more expensive than what standard homeowners insurance covers

Reviewed by Chip Stapleton

Should you insure your wedding rings? It certainly doesn’t sound as fun as planning the honeymoon. But when it comes to engagement rings, wedding bands, and other wedding jewelry, securing sufficient protection can prove as essential as any other wedding-related task.

The national average spent on engagement rings varies. For example, The Knot’s 2023 Jewelry and Engagement Study notes the averages around $5,500. However, that figure can certainly be higher depending on where you live, the type of metal, and the type and quality of the gemstone used.

If you’re looking at an expensive engagement ring, consider a plan to insure it. Add in the cost of wedding bands for both spouses, and it’s clear that the average $1,500 of jewelry coverage offered by standard renters and homeowners insurance won’t cut it for your carats.

Key Takeaways

• Consider insurance If you plan to buy an expensive engagement and/or wedding ring.
• Couples may spend thousands of dollars on engagement and wedding rings, but the limited coverage of renters or homeowners insurance often offers just a fraction of an item’s worth.
• Options to insure expensive wedding jewelry include adding a rider to a current homeowners policy that itemizes the pieces or buying a separate insurance policy.
• The general rule to insure engagement and wedding rings is $1 to $2 for every $100 of value, paid annually.
• Those who elect to acquire added coverage should know the finer points of the new policy, including what’s covered, how they’ll be reimbursed, and the way the ring will be valued.

Are Wedding Rings Covered by Homeowners Insurance?

The short answer is yes, jewelry is included in renters and homeowners insurance policies that cover the value of items in your home. However, coverage for jewelry only goes up to a certain dollar limit, and there may be group limits on it, such as a limit for the collective value of all items. Circumstances such as loss or damage may not be included. And, in most cases, coverage is subject to a deductible before you receive any reimbursement.

Engagement and wedding rings can be covered more comprehensively with the purchase of a rider or floater, or by an extension to your current policy. This is also called scheduling property. Scheduled personal property goes over and above the typical renters or homeowners policy so the full value of the designated, high-priced item is covered in the event of a claim. Generally, you do not pay a deductible on a scheduled item.

The simplest step would be to add a floater itemizing your jewelry to your existing insurance policy. However, if you don’t have a renters or homeowners policy or if the coverage offered through your existing provider doesn’t meet your needs, then you can purchase a separate policy specifically for your rings. Your jeweler might recommend a certain insurer.

Important

Shop around to find an insurance company that suit your needs. You might consider looking for a specialist in jewelry coverage.

Wedding Ring Insurance: What to Look For

As with any other type of financial contract, the fine print of an insurance policy always matters when it comes to choosing a provider and policy for your ring(s). Here’s what to consider.

Coverage

You cover all your bases when it comes to your home and vehicle. So why not do the exact same thing with your wedding jewelry? After all, you’ve invested a lot of money (and time) into purchasing it, so you should ensure you get the right coverage.

A good policy should cover all contingencies when it comes to your engagement and wedding rings. This includes loss, theft, and even damage as a result of an accidental drop down the garbage disposal. Make special note of any circumstance that isn’t covered.

Replacement

There are certain questions you should ask and get the answers to before you sign up for coverage. For instance;

• How will the insurance company replace your rings?
• Will it try to find a replacement for you?
• Would you have to obtain it at a certain jeweler?
• Can you just opt to receive a check as compensation?
• Will repairs or partial losses be covered?

Make sure you evaluate the replacement policy against your financial and sentimental concerns.

Assessment of Value

This is key. How will the insurance provider assess the value of your ring for reimbursement? Will it use the current appraisal value or will it only consider the original purchase price?

Documentation requirements

Note all of the required paperwork for your policy so that everything is readily available if you need to file a claim. These documents typically include receipts, photos, and up-to-date appraisals.

Get an Appraisal

If you’re a homeowner or ever considered purchasing one, you may already be familiar with the appraisal process. Getting one done will tell you the value of the property. The same principle applies to your wedding ring(s).

An appraisal of a ring is often required when purchasing supplemental insurance coverage. The store that sold it might provide one, but if a lot of time has gone by since the purchase, then you’ll need to get an independent appraisal, which some insurers prefer anyway.

A professional jewelry appraisal can help verify facts about the ring while assessing its value for insurance purposes. You can ask the jeweler for recommendations. The American Gem Society also has a directory of qualified professionals that can be searched by ZIP code. Appraisal rates generally range from $50 to $150 an hour.

Consider Coverage Options

It’s important to compare not only the cost of one insurance provider to another but also the relative cost to the relative coverage, as both vary greatly from provider to provider and even from policy to policy.

The general rule for insuring wedding and engagement rings is $1 to $2 for every $100 of value, paid annually. A $5,855 ring, for example, would cost around $59 to $118 per year to insure. If you live in a city where the risk of theft is higher, then you can expect to pay a bit more for your coverage. But insurance companies may lower premiums for those willing to install a home security system, purchase a safe, or rent a safe deposit box in which to store rings when they aren’t being worn.

Some policies have deductibles while others don’t. Those without deductibles tend to have higher premiums, but they will reimburse more fully and with less fuss. In the case of a policy with a deductible, look to see which types of repairs can affect your coverage costs.

After you’ve combed through the policy fine print, assessed the value of your rings, and compared relative costs, you should have enough information to choose an insurance policy that meets your needs. Don’t wait too long to secure coverage, though. You’ll want to make sure you’re protected if anything happens in the days after your purchase or receipt of the ring.

3 Months

Industry guidance is to acquire a ring that equals a certain number of months’ salary. For example, some note the ring should cost three months salary.

Once You’re Insured

Keep all insurance-related documents in a safe, secure, and dry place. By this point, you should be familiar enough with the details of your policy to know exactly what documentation you need to keep on file: a written appraisal, ring receipts, photos, gem certificates, etc. Also, make sure that any policy details you’ve discussed with your insurance agent are included in the paperwork. All promises need written documentation.

Values of precious metals and fine jewels change frequently. Consider having an appraisal done every two to three years—even if your insurance policy doesn’t require regular appraisals—to ensure your insurance coverage is still adequate. Keeping an evaluation up to date is particularly important for vintage, antique, and/or collectible rings. Bring a copy of your original or most recent appraisal so your appraiser can work from that rather than start from scratch, helping to save you time and costs.

How Much Does It Cost to Insure a Wedding Ring?

The cost to insure a wedding ring depends on a number of factors, including the type of ring, the metal used, stone set. and where you live. But you can generally expect to spend $1 to $2 for every $100 of value. For a $2,000 ring, you can expect to pay $20 to $40 per year.

Does Homeowners Insurance Cover the Loss of a Wedding Ring?

Your homeowners insurance policy may cover the loss of a wedding ring. But keep in mind that they may be limited as to how much they’ll pay you compared to the actual value of the ring. Some companies allow you to purchase a rider that can give you additional coverage that’s specific to your ring. If this doesn’t work, you can shop around for a separate policy.

Where Can I Get Wedding Ring Insurance?

Your homeowners insurance policy may cover the loss or damage to a wedding ring. But these policies may be limited to how much they’ll pay. You may be able to purchase an additional rider that will cover your ring. There are also specific policies that cover jewelry, especially engagement and wedding rings.

The Bottom Line

Given the high average cost of wedding rings, acquiring insurance is a prudent move. If your jewelry is adequately covered under the modest personal property allowance of your current renters or homeowners insurance, that’s fine. But if not, then how and where you decide to insure your wedding rings will depend largely on your specific needs and assessments of value. By doing your due diligence in combing through the fine print of potential policies and comparing true costs and coverage, you can ensure that you’ve properly protected jewelry that has both monetary and emotional value.

Read the original article on Investopedia.