You Won't Have to Worry
A comprehensive jewelry insurance policy protects wedding rings against damage, theft and loss. You don't have to worry about someone breaking into your home or your ring slipping off your finger while on vacation.
You Can Choose Your Replacement
Jewelry insurance companies are generally willing to work with a jeweler of your choice if you need to settle a claim. The same can't always be said of your other insurance providers.
Normal Wear Is Covered
Many people accessorize with their diamond rings every day, subjecting them to normal wear and tear. The diamond will grow cloudy over time, while the band might dent or lose its luster. Some jewelry insurance policies cover certain repair or replacement costs.
You Have an Official Record of Your Ring's Value
Insurance helps you prove the value of your engagement ring. This can be very beneficial in certain situations - for example, when planning your estate. Having an official document of your ring's value helps you divide your assets in a way you find fair. It also assists your beneficiaries if they have to pay estate taxes. A record of your ring's value also helps you file a police report in case it is stolen.
You'll need certification and an appraisal.
You Need to Obtain Specific Documents
To insure your jewelry, you'll need an appraisal from an independent party, certification from either the Gemological Institute of America or the American branch of the European Gem Laboratory, photographs of your piece and, if possible, the original receipt. You might not be able to insure your ring without these documents, especially the certification and appraisal.
You Might Already Have Insurance
Your homeowners or renter's insurance most likely covers unscheduled personal property, which creates a duplicate coverage issue if you try to insure your ring separately. Check your policy coverage, but remember this applies to more than just jewelry. If your policy covers up to $5,000 and you lose your jewelry, fine china, computers and brand-new television, your insurance won't be able to cover it all.
Jewelry Insurance Can Be Expensive
Depending on the value of the item in question, you could spend over a hundred dollars per year just insuring your ring. If you're already paying for homeowner's insurance, car insurance, life insurance, disaster insurance and possibly more, this expense might not fit in your budget. You'll generally pay $1 to $2 to insure your ring for every $100 it would cost to replace it. Therefore, insurance for a $10,000 ring could cost anywhere from $100 to $200 annually. This cost increases in areas where the risk of theft is higher than average.
Your Life Could Change
No one wants to think about the possibility of divorce or a broken engagement, but these are factors you need to consider when deciding to insure a wedding ring. Who owns the ring should any of these events occur? Make this decision before looking at different policies, and make sure your insurer is flexible when it comes to these kinds of situations. Otherwise, you might invest a significant amount of money for nothing.
It's up to you to balance the positive and negatives of jewelry insurance. There are a lot of questions to ask yourself regarding budget and your future outlook, but the right policy can help you rest easy.