How do I insure my diamond engagement ring? We get asked this question all the time. With the exception of a car, an engagement ring is usually the largest purchase most people have ever made to that point in their lives. Getting the ring insured is easy, affordable, and one of the smartest decisions you can make. Here are the 3 steps you need to take to get this incredibly important piece of jewelry protected.
Step 1: Get an Appraisal
The first step to insuring any jewelry, is a written appraisal. These appraisals should be free of charge from the store where you purchased the ring. Some insurance companies will accept a sales receipt, but a written appraisal is the best option.
Sales receipts usually have very limited information on them, and when insuring your jewelry, you want the description to be as specific and detailed as possible. Insurance companies will use this description to replace your piece, and a receipt that says, “1.01ct white diamond ring with H/SI center diamond” and a price, leaves a lot of room for dispute. Did they mean white diamond or white gold? If it was a white diamond, what type of metal was it? Was it a solitaire with a single 1.01ct diamond, or is the total diamond weight of the ring 1.01? Is the clarity SI1, SI2 or SI3? Was there a certification? I think you see my point….
Make sure your appraisal has a clear detailed picture of the ring, a complete written description of the ring, including metal weight and color, clarity and size of all diamonds. The center diamond should have it’s own detailed grading report. If the diamond has a certification, that should be included in the appraisal as well.
Lastly, the appraisal will have an “insurance replacement value”. This is the amount of money it would cost to replace your ring, and is how the insurance company calculates your premiums. The insurance replacement value should be very similar or exactly the same as the price that you paid for the ring. Now that may seem like common sense, but unfortunately many jewelry stores run 50% off sales 365 days a year. If your ring “retails” for $10,000 and they discount it 50% and sell it to you for $5,000, those stores are required to give you an appraisal stating the ring is worth $10,000.
These “feel good appraisals” make you feel like you got the deal of a lifetime. However, when you submit that appraisal to the insurance company, they are going to charge you a premium double what you should be paying.
Plus, if you have a loss, they’re not going to give you a check for $10,000 to replace a ring that can be bought for $5,000. So make sure you save yourself some money and ensure the valuation on your appraisal is accurate.
Step 2: Choose an Insurance Company
There are two choices when choosing an insurance company. You can either insure the ring as a personal property rider on your home owners or renters insurance, or you have the ring insured with a jewelry specific insurance company.
The advantage of using your existing insurance company is they can often bundle the rate, or combine your bill, making less paperwork in your life. However, in my experience, large insurance companies will vary widely in terms of customer service and how painful the replacement process will be. I've seen some go smoothly, and others be nightmares. I don't have recommendations on specific companies, but it is something you need to consider.
We recommend Jewelers Mutual for jewelry specific insurance companies. Their rates are reasonable, their customer service is great and their jewelry policies almost always have zero deductibles. They insure our store and have insured my families personal jewelry for many years. You can learn more about their insurance policies here.
Step 3: Create Your Policy and Setup An Autopay
Most insurance companies will have online options for creating your policy. Just call your agent or visit their website to check.
Typically all you need to is scan or mail a copy of your appraisal and payment in the form of a check or credit card. Since jewelry insurance is inexpensive, you'll typically pay the entire annual premium in one shot.
Insurance premiums usually cost between $12-$15 per thousand to insure. Remember that ring with the feel good appraisal? Would you rather your premium by $150 per year or $75?
No matter which insurance company you choose, my final recommended step for getting your ring insured is to setup an autopay. You're going to have the ring forever, so you might as well keep it insured forever too. Setting up an autopay is the best way to make sure your coverage never lapses. Losing an engagement ring is a terrible feeling, make sure you don't compound the issue by having to pay out of pocket to have it replaced.
If you have any questions, please comment, shoot me an email or call the store anytime. For more information about our Jewelry Insurance Appraisals, please click the link.
We're honored that Mullen Bros. Jewelers ranks #1 in overall customer ratings among all jewelry stores in Southeastern Massachusetts and we will continue to take care of our neighbors and friends, one jewel at a time.
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