Types of Insurance for Engagement Rings

Written by: Sue Fritz | | Insuring Your Jewelry

Engagement Ring in a Rose

Whether you’re looking at insurance for engagement rings, family heirlooms, or a new watch, you have several options available. Deciding on the best type of insurance depends on several factors – how much did your jewelry cost? Can you afford to replace it? And how much risk are you willing to take on? Here are the pros and cons of different forms of jewelry coverage.

Warranty

A jewelry warranty is great because it’s often included in the purchase price. Warranties usually only cover manufacturer defects, and most contain clauses that require you to get your jewelry inspected at least every six months. If you don’t keep up with the inspection, that ‘lifetime guarantee’ may be voided. If you’re counting on your warranty, make sure that you keep a detailed record of inspections, which usually must be performed by the jeweler who sold it to you. A warranty will cover you if there are manufacturer defects, but if your ring is lost, stolen, or damaged, with most warranties you’re out of luck.

Renters or Homeowners Insurance

You have two options when it comes to this kind of insurance. You can either rely on the coverage that’s included for your personal belongings, or you can spend extra to purchase a jewelry ‘floater’ or ‘rider.’ Included coverage varies by insurance company but is generally limited, often to a maximum of $1,000 per item, or $5,000 total for all jewelry. Coverage for theft or damage is usually limited, and loss or mysterious disappearance may not be covered at all. Many insurance companies require you to work with their network of jewelers, who may not be as qualified as your jeweler. Something else to consider: if you make a jewelry-only claim, your premiums could go up and it may be harder to get insurance in the future. Jewelry is the most commonly claimed item on homeowners insurance, and the average settlement for a ring is only $834, according to inventory services firm Enservio.  Of course, every insurance policy is different, and you should thoroughly examine your renters or homeowners insurance to see if their coverage is sufficient. If you want insurance for an engagement ring that cost less than $1,000, for example, your renters or homeowners insurance may be enough.

Jewelry Insurance

Jewelry insurance offers comprehensive coverage for your cherished possessions. A good insurance provider will cover a wide variety of situations, including loss, theft, damage, earthquakes, floods, or simply mysterious disappearances. Deductibles (the amount you pay if you file a claim) are flexible, and you can customize your insurance so pricier pieces of jewelry will be fully covered. If you do need to settle a claim, a jewelry insurance company is more likely to work with the jeweler of your choice, resulting in a higher quality replacement or repair.

Whether you choose to go with your homeowners/renters insurance policy or buy separate jewelry insurance depends on your situation and the value of the jewelry you want to insure, but we encourage you to at least get a jewelry insurance quote from Lavalier. It takes less than a minute, and all you need is your zip code. Explore your options, and feel free to give us a call at (855) 477-6687 or send us a message if you have any questions.

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