Real World Information

Manufacturer’s Warranty vs Insurance

Most jewelers include a warranty when you buy your ring. These warranties typically cover the manufacturer’s defects only. They don’t cover damage you caused accidentally, nor theft or loss.

Replacement Insurance

We hope you never feel the pain of theft or loss, but no one can predict the future. The main reason we recommend engagement ring insurance, like home insurance, is protection against the remote chance that calamity will strike. As with other insurance types, an insurance plan with no deductible cost more than one without a deductible. No matter your choice, be sure the replacement policy and the conditions of loss it covers are clearly defined.

Damage and Repair Insurance

You have a greater chance of your ring being damaged than stolen so it’s logical to be sure accidental damage will also be covered under the policy you secure. Here again, be sure the terms of the repair policy are clearly defined.

Travel Insurance

It’s important to find out whether your insurance policy has specific geography. Some policies don’t cover damage, theft, or loss outside of your state or traveling abroad. This may not be a deal-killer. If the policy ticks all the other boxes, you can secure travel insurance separately.

How Much Does Insurance Cost?

Insurance quotes vary but you can generally expect engagement ring insurance to cost 1 – 2% of the ring’s replacement value per year. For example, $50-100 per year for a $5,000 ring. The rate will vary, depending on what kind of deductible your policy has, if any. You may be eligible for a discount if you have a home security system, lockbox, or vault.

Get a free quote now: One of PriceScope’s supporters specializes in jewelry insurance. Enter your zip code here to get your free engagement ring insurance quote from Jewelers Mutual.

Securing Engagement Ring Insurance

Documents You’ll Need

In order to get jewelry insurance, you will need documentation. For items costing less than $5,000, you may be able to use the sales receipt. If the item has a higher value a professional appraisal will be required.

Seller’s Appraisal

Some jewelry sellers provide a “seller’s appraisal” for this purpose. This will be a document, separate from the transaction, which provides details on the center stone, setting, and any side-stones.

Independent Appraisal

A professional jewelry appraiser can provide an appraisal for any piece, new or old. When selecting an appraiser, be sure you’re just as quality-focused as you were in your diamond jewelry search. Candidly, many appraisers have not stayed current on cut quality evaluation.

Are you interested in an appraisal? Read about Independent Jewelry Appraisals: Why you need one and what to expect.

Appraisal Components

Your professional appraisal should include the following components.

Setting Description

The setting should be described in terms of style (solitaire, halo, etc.), alloy (white gold, platinum, etc.), purity of the alloy (14k, 18k, etc.), and weight of the setting. All stamps, maker’s marks, and hallmarks should be reported. Any side-stones should be described, noting their quantity, shapes, measurements, weights, color, clarity, fluorescence, and cut quality (where applicable).

Center Gemstone Details

The appraiser should note the center stone’s millimeter measurements, carat weight, color, clarity, and cut quality. Grades for finish (polish and symmetry) should be included, as should the presence of fluorescence.

Grading Report Information

The grading laboratory and report number for the center gemstone and any side stones should be noted in the appraisal.

Designers and Brands

If your ring is a designer setting and/or your diamond is part of a branded collection be sure your appraisal clearly mentions those distinctions.

Photos

Modern appraisals should include at least one photo of the item.

Appraisal Value

Be sure you are not given a “feel good” appraisal with an impractical, inflated value. If you insure a ring for $20,000 that could be replaced for $10,000 you will be paying a far higher premium than you need to. In ordinary circumstances, the appraised value of a piece should be no more than 10-15% of the transaction price. It’s common to add that addition 10-15% so you’re protected for a period of years as the prices of metal and gemstones continue climbing.

Grading Differences

Reputable appraisers will apply industry-accepted international standards when judging a gemstone’s grades. With that said, grading is subjective. A standard deviation of +/- one grade is generally deemed acceptable among professionals. If the appraiser’s grades are notably different than the laboratory report (2+ grades off) it’s possible your gemstone was over-graded by the laboratory prior to reaching you, or is now being under-graded by that particular appraiser.

Read more about this on our Diamond Certification and Grading page.

Questions to Ask

 Here are some questions to ask the agent prior to securing your engagement ring insurance policy.

• Is this reimbursement or replacement insurance?
  • If reimbursement, what amount will I receive, and is there a deductible?
  • If a replacement, where am I allowed to get my ring repaired or replaced?
• Do you require routine inspections for the policy to continue being valid?
• What situations constitute damage that’s covered?
• What situations constitute loss that’s covered?
• What situations constitute theft that’s covered?
• Am I covered if I’m in another state or country?
• What proof must I provide in filing a claim?
• If I file a claim will my premiums go up?
• What else should I be asking you?

This list is by no means complete. You should ask detailed questions to know the ins and outs of purchasing the best insurance policy. Not all policies will fit you.