The average engagement ring budget increased to $7400 in 2018, up from $6351 in 2017.

An engagement ring is highly valued and people allocate a good amount of money towards purchasing this jewelry. It’s a lifetime investment with sentimental value that needs to be well taken care of.

With the right engagement ring insurance cover, you can protect the financial value of the piece of jewelry. Unfortunately, the emotional attachment may be devastating if you lose the ring.

There is a general assumption that your jewelry is insured if you have a homeowner insurance policy, however, you may not be covered for high-end worth items.

Want to protect your engagement ring officially? There is no better way than engagement ring insurance. Find out more in this guide.

What Is Jewelry Insurance?

This is a cover designed to insure your jewelry specifically against damage, theft or loss.


In case it’s stolen off your body, home or car


Insurance can cover total or partial damages

Loss and Disappearance

This is covered regardless of who is at fault of losing the ring as long as they are on the policy.
How Much Does the Insurance Cost?

The average insurance cost will run between $1-$2 for every $100 of the appraisal worth. This you’ll need to pay up to 2% annually to keep it insured.

Steps to Take for an Engagement Ring Insurance

If you purchase an engagement ring, you may need to plan for any eventuality in the future. The engagement ring insurance is invaluable and protects you from the heartache of the loss or damage of your precious jewelry.

1. Buy the Ring and Retain the Receipt

Buy the ring from a trusted store and ensure that you have the receipt. Before providing a cover, your insurance company will require the retail value of the ring. Ensure you keep the receipt safely and take photos of both the ring and receipt.

2. Have Appraisal Done

This process enables the insurance company to have an actual value of the ring from a trusted appraisal agent. The appraiser is guided by The Uniform Standards of Professional Appraisal Practice. They will give you a fair appraisal value for your ring.

In most cases, insurance companies don’t’ insure an engagement ring without an appraisal. They will examine the stones on the ring, carat weight, markings, and color among other things.

3. Will A GIA Certificate Work for Insurance?

In most cases, this certificate will not work for insurance. It’s an authoritative certificate but most insurance companies generate valuation from the appraisal.

4. Ensure Valuation Is Accurate

An incorrect evaluation will jeopardize your policy cover. The insurance company may leverage on the error and not pay you the right value for your ring.

If the valuation is too high, this will inflate your monthly premiums above the price you should pay. If the valuation is too low, then you may lose out on recreating the ring in case you need a payout.

5. Does the Homeowner Insurance Cover the Jewelry?

In most cases, homeowner’s insurance policy covers your property against different causes such as theft, damage or fire. However, it has a limited cap.

To ensure you get the full value you will need additional policy insurance. Learn more on the homeowners insurance as it’s a necessity for the lenders when the mortgage is settled upon

6. Buy Separate Insurance Policy

In case the ring can’t be covered under the existing rental or homeowner’s insurance policy, get yourself a different insurance coverage. Engage an insurance agent who will guide you on what alternative policy would work best for you. Jewelry insurance companies may offer a more comprehensive cover.

7. Ask the Right Questions

When you’re getting your policy, it’s important to cover your bases and know if you are getting value through the cover. This will help you understand the insurance process, duration, and measures taken in case your ring is stolen, damaged or lost.

Ask what the different plans demand. You need to be clear on who repairs the ring in case it’s damaged. It’s important you have access to numerous replacement options.

Know the demographics of insurance and if the policy adjusts in case of inflation. Understand what the insurance covers and what it does not. You need to get specific steps of the insurance process to file a claim. This will guide you on the decision to Insure your ring.

8. Opt for Deductibles

The deductible is the amount of money you pay to replace the ring before the insurer pays for the rest of it. There is a wide range of deductibles that your insurance can offer when you insure your ring.

The higher the deductibles, the lower the annual premiums for you. You should consider the most affordable option should something happens to your ring

9. Proof of Loss

Ensure you find out what is required in order to make a claim. In case your ring has been stolen or lost, they may need additional proof such as a police report in case of robbery or theft. Ensure you opt for a company that does not make it hard to file a loss.

10. Damage Insurance

Damages to the ring due to impact are covered. However, normal wear and tear may not be insured. Enquire this from your insurance provider.

11. Insurance cash out

In some cases, some insurance companies will give you a check for the full value of the ring. Others may insist you buy a replacement from a source who they pay directly. There are other insurance companies that will allow you to look around for a ring before giving any information to them. Whichever method of payment you prefer, ask your insurer a before signing the policy.

Insure Your Jewelry

It’s important to read the fine print of what your engagement ring insurance policy covers. There are instances where they may not pay.

Also, seek to find out who actually insures the ring. Whether it’s the buyer or the one who receives it. It may be easier to add your spouse on your policy so that you’re both covered the homeowners or renter’s insurance policy.

If your policy only covers you, then you may have to comprehend the loss of the item without compensation if it’s lost while in their possession.

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