January 18th 2024

How Much is Engagement Ring Insurance?

By Devin Jones

Engagement rings represent a significant financial investment. That's why purchasing an engagement ring insurance policy is something worth considering. 

In this post, we'll look at the cost of ring insurance and the factors influencing policy prices.

What Is Engagement Ring Insurance?

Engagement ring insurance is a tailored insurance coverage designed to protect your engagement ring from unforeseen circumstances, ensuring its sentimental and monetary value remains intact. This specialized standalone jewelry insurance protects against potential risks such as loss, theft, or damage, allowing you to enjoy your engagement without worrying about the "what ifs."

Why Do You Need Engagement Ring Insurance?

Here's why you might want to think about getting some jewelry coverage:

1. Accidents and Loss: Let's face it, life can be unpredictable. Your ring might accidentally slip off your finger while doing something as mundane as washing dishes or playing your favorite sport.
2. Theft: Insuring your engagement ring means that if the unthinkable happens, such as theft,  you won't have to bear the entire financial burden alone.
3. Damage: If your engagement ring needs repairs or refurbishment due to unforeseen damage, you won't have to break the bank to restore its sparkle.
4. Replacement: Maybe your engagement ring is a unique, one-of-a-kind family heirloom. Standalone jewelry insurance can cover the cost of recreating a similar piece if the original is lost or damaged beyond repair.

How Much Is Insurance For An Engagement Ring?

If you're asking yourself, “How much is it to insure an engagement ring,” then you should know that it can vary depending on factors such as the jewelry coverage limits, your location, and the intricacies of each policy:

1. Ring Value: Unsurprisingly, the more your engagement ring is worth, the higher your insurance premium will likely be. Insurers calculate the cost based on the appraised value of your ring.
2. Location: Believe it or not, where you live can impact insurance rates. Urban areas may experience higher rates due to increased risk factors like theft and loss.
3. Deductibles: Like any insurance policy, engagement ring insurance coverage often comes with a deductible. This is the amount you agree to pay out of pocket before your insurance kicks in. Opting for a higher deductible might lower your premium, but you'll pay more if you ever need to make a claim.
4. Personal Factors: Your history can play a role. Factors such as credit score and prior claims may influence your insurance rate.

Does Diamond Ring Insurance Cost More?

While diamonds are undoubtedly precious stones, the straightforward response is that the insurance cost for a diamond ring remains unaffected. The overall value of the item determines jewelry insurance costs. It is not contingent on the type of stone it features.

How Much Does Engagement Ring Insurance Cost?

While insuring your diamond engagement ring might not be the initial thought, it's essential to safeguard this valuable possession.

You can add your engagement ring to your homeowners or renters insurance policy. But here's the catch: standard policies often have coverage limits for jewelry that might not match your ring's actual value.

These policies typically restrict coverage for personal items to $1,000 to $2,000. This amount is insufficient to replace most fine jewelry, especially engagement rings.

According to Dustin Lemick, CEO of BriteCo, “Different factors determine your actual engagement ring insurance cost, including the value of your ring, the specifics of your policy, and your risk factors. The annual cost for full coverage of an engagement ring will be between 0.5%-1.5% per year of the appraised value with BriteCo. But other insurance companies typically range from 1% to 3% of the appraised value.”

Engagement rings can be a significant investment, and insurance provides a financial safety net, ensuring that you won't suffer a substantial monetary loss if your ring is lost, stolen, or damaged.

How To Insure An Engagement Ring

When you've determined  that insurance for your engagement ring is the right step, here's how to proceed:

Research Jewelry Insurance Companies

While adding your ring to your homeowner's insurance is a common choice, exploring a specialized insurance company for optimal coverage is advisable. For example, BriteCo offers great engagement ring insurance policies tailored for fine jewelry, going beyond the standard insurance coverage.

Ask For An Engagement Ring Insurance Quote

Once you've chosen an insurance company, the process typically involves getting a quote. This quote outlines the available policy options and their associated costs. To receive an accurate quote, you'll be required to provide certain information:

• Engagement Ring Appraisal: This involves a comprehensive report of the ring, encompassing the estimated cost for replacement.
• Basic Information: When setting up a jewelry insurance policy, the provider will ask for your basic information, such as your address and the best way to contact you. Suppose someone other than the policyholder is going to be wearing the ring. In that case, the provider will also ask for their information.
• Additional Details: You should also expect inquiries about your occupation, claims history, background, and more as insurance companies seek to tailor a customized policy to your specific needs.

Pick A Jewelry Insurance Policy Tailored To Your Needs

There's a common misconception that protecting your jewelry comes at a steep price, but that's not the case.

There are affordable jewelry insurance options that allow you to keep your ring secure without breaking the bank. When you're on the hunt for a standalone jewelry insurance policy, pay attention to details like coverage limits, deductibles, and any restrictions to ensure the cost aligns with what you're getting. 

Do I Need To Purchase Engagement Ring Insurance?

When protecting your engagement ring, the decision to get insurance isn't always as clear-cut as saying, "I do." Here are two key questions to ask yourself:

• Is your engagement ring a family heirloom, or does it have a high monetary value?
• Are you prone to misplacing things or working in an environment where your ring faces potential damage?

If so, standalone jewelry insurance can offer peace of mind.

FAQs

• How much is insurance on an engagement ring?
  Engagement ring insurance cost relies on several factors, such as the ring's appraised value, the chosen provider, and the coverage. On average, you can expect to pay anywhere from 1% to 3% of the ring's value annually for insurance coverage. 

• How much is diamond ring insurance?
  The cost to insure an engagement ring with diamond stones varies based on factors such as the ring's appraised value, coverage limits, and the provider, so it’s best to obtain quotes for specific pricing.

• How much do engagement rings cost?
  The cost of engagement rings varies widely, ranging from a few hundred to several thousand or more.

Conclusion

Engagement ring insurance provides financial protection for your valuable symbol of love, covering potential loss, theft, or damage, something worth considering if you’re about to propose or have already exchanged the famous "I do’s."