Engagement ring insurance – different types of policies

January 16, 2009 · Filed Under Art Deco Rings 
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So you have your engagement ring, you’ve popped the question and your partner has answered in the affirmative, hurrah!
But one thing that most people never think of is investing in engagement ring insurance, and that’s a tragedy, because if the worst was to happen, then your engagement ring insurance would be worth every penny –  if you have the right policy.
So what kind of engagement ring insurance can you get?

There are several different types of engagement ring insurance policies.  Ideally, you want to spend time looking at each different policy so you can effectively determine what insurance policy will be right for you.

I’ve listed a few different types here and the pro’s and con’s, but if you have an expensive engagement ring, then you really need to think carefully about engagement ring insurance.

Home owners insurance
One  solution, is to have your engagement ring insured under your home owners insurance.  However, be careful with this.  Many home owner’s insurance will not cover the loss of a stolen diamond.  Check your home insurance policy thoroughly to discover if it will service as engagement ring insurance.  Make sure you look at the cover you have for jewellery theft and then determine if it’s enough to insure your engagement ring.  Most people think that the cover over the jewellery will also cover engagement rings but in many cases it doesn’t.

Replacement Policy
If your home owners policy won’t be enough for engagement ring insurance, then you need to look at taking out a separate policy.  One option is to get  a replacement policy. This type of insurance will refund the cost that you incur for replacing the ring with a new piece that is identical.  But again, be careful, because this type of engagement ring policy will only replace the ring at the current market value.  Not what you initially paid for it.

Valued At Policy
The other type of engagement ring insurance policy is a ‘Valued At,’ policy which is where you set the value of your engagement ring.  In some cases, this can be at a higher value that the amount paid to cover aspects like emotional upset.  The downside to these kind of policies is that they can be very expensive, but should anything happen, then you will get the value for the amount you set the ring at when you took out your ‘valued at engagement ring insurance.’

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