Protect That Bauble: Engagement Ring Insurance

So you've taken one of the biggest steps of your life by purchasing a ring and proposing to the woman of your dreams. This is the point where practical considerations begin to cross your mind.... Like, what if my woman is washing her hands and the ring slips off down the drain. Or what if the diamond falls out of the setting. Or what if the dog somehow swallows it.

There are several different types of insurance policies for jewelry. You need to carefully investigate each policy to determine what is right for you. Each one varies in annual costs and procedures for reimbursements.

Many people rely on their homeowner's/renters's insurance to cover them in case of a jewelry mishap. Unfortunately, home owner's or renter's insurance may not cover any or all of the cost of a lost or stolen diamond. However, you want to thoroughly check out your policy to discern exactly what is and is not covered. Common practice is for home/rental insurance policies to cover between $500-$1,000 for jewelry theft. However, such policies may not cover damaged or lost engagement rings or anything that happens to the ring outside of the homefront.

A replacement policy will refund the cost of replacing the ring with an identical new piece (i.e. comparable diamond size, setting and metal) at the current market value.

Actual value insurance policies are the most popular amongst consumers and also the most affordable. This type of insurance policy replaces the cash value of your engagement ring, but subtracts for depreciation. Another words, if you have a $3000 engagement ring but it is four years old, money would be deducted from the ring's value based on wear and use.

Valued At Policies are more uncommon as well as expensive. You set the value of your ring, which can actually be higher than the appraised value, when taking into consideration factors such as emotional sentiment. If anything should happen to the ring, the insurance policy will reimburse you for the value you set the ring at.

Ask the jeweler where you purchased your ring for insurance policy recommendations. They may have relationships with insurers and can potentially offer you a discounted policy. Also, look around on the internet and see what deals you can find. Make sure to investigate the company with the Better Business Bureau to see whether they historically have a solid reputationHere are some questions you should ask potential insurers:

- Is there a deductible and how does it impact costs?

- What type of paperwork must I provide?

- Under what circumstances is the ring covered?

- Is the ring covered for the full replacement cost?

- Will the settlement be in cash or for a replacement ring?

- Are repairs covered for damaged rings?