Engagement Ring Insurance 101

By Karolina Dehnhard (Partner, Budd Larner, PC, Founder of Divorce Dynasty)

Imagine that you are newly engaged. You cannot take your eyes off of the gorgeous sparkler on your finger. The entire world is as shiny and lustrous as that diamond that made you say “Yes!” Now imagine that feeling when you are frantically searching every nook and cranny of your honeymoon suite as you cannot locate that piece of jewelry that symbolizes your “forever after.” I have heard these horror stories all too often and always go back to the basic question: Was your ring insured?  

We insure our cars, our homes, the contents of our apartments, an expensive piece of artwork, yet why do so many young brides not insure their engagement rings?  For starters, many think it’s too expensive. On average you will pay $1 to $2 for every $100 of your ring’s replacement value. So if your ring is worth $4,000, you may pay about $80 per year. Given that cost is often not prohibitive, the first call, after telling your friends and family that you are engaged, should be to your homeowners or renters insurance carrier to explore options of insuring the ring (this is referred to as a Rider Policy.)  If you do not own a home or do not carry renters insurance, explore the options for securing a separate policy.  

It is also important to compare the coverage that various insurance companies will provide by asking questions such as: 

1. Will the policy cover theft?
2. What if I simply misplaced my ring?
3. Will I receive a check for my missing/stolen ring or will the carrier require that I purchase a replacement at a specific jeweler?
4. What proof will I need to submit for my claim?
5. Will the value of the ring be fully covered?

In the event you have a policy and your diamond is already insured, don’t forget to alert your insurance company once you buy your dream home. If you move after the wedding, it is important to ensure that your “rider” follows you, as all too often the ring may be insured at the bride’s home (or her parents). Not adding the ring to the new homeowners policy can have a devastating effect.

Remember, life will throw curveballs that you will need to deal with as a married couple, curveballs that you may not necessarily be able to prepare for properly.  Lamenting over a lost engagement ring is a curveball that can be avoided.