Whether your engagement has been in the works for months or came as a total surprise, one of the first things you should do after purchasing a ring is arrange for an independent appraisal and jewelry insurance. The appropriate policy depends on the value of your ring and your existing insurance. The following are five options to consider when insuring your engagement ring.
Check existing coverage
If you currently own or rent your home, chances are you already have an insurance policy in place that provides some amount of coverage for jewelry. However, most policies have a dollar limit on a single item such as an engagement ring. If the value of your ring exceeds the dollar limit, think about purchasing additional insurance. Also, keep in mind that homeowner policies may only cover theft, not damage or accidental loss.
Purchase a policy rider
To add to your existing homeowner or renter policy, you can purchase extended insurance, also known as a floater or a rider. A rider can be limited solely to your engagement ring and will cover its value, minus a certain deductible. As with any insurance policy, read over the terms to ensure that you know what is covered. Will the policy only cover loss or theft, or will you be reimbursed if you accidentally drop your ring down the drain while washing dishes?
Buy a separate personal property policy
A separate personal property policy is needed when you do not have an existing policy that covers jewelry or allows for riders. High-value items may also require an individual policy tailored to your needs regarding deductibles, amount of coverage and renewal options. Remember to ask whether the policy covers repairs to damaged jewelry such as loose stones or bent prongs.
Purchase specific jewelry insurance
Jewelry insurance policies offer the most options for engagement rings, including replacing lost pieces with a similar item in lieu of a monetary payout. Specific jewelry insurance may also cover maintenance on your ring such as visits to the jeweler to check whether the prongs holding the stone in place are secure. Many jewelers also offer this service, so don't forget to ask about cleanings and maintenance when you are shopping around.
Buy a safe for your ring
Depending on how often you plan on wearing your ring, you may want to purchase an in-home safe for storage. If you don't store the ring in the safe, you can at least use it to hold your appraisal paperwork and photos of the ring to be used as proof in event of loss. Overall, the best place to keep an engagement ring is on your finger. Once the ring is properly sized, wear it and enjoy it - and take comfort that you know exactly where it is.