Engagement Ring Insurance – Basics
Diamond is the hardest material known to man, but even the most flawless diamond can chip if struck along its crystal’s cleavage plane. We believe every diamond owner should carry insurance.
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Engagement Ring Insurance Described
Engagement ring insurance is designed as a safety net in case of loss, damage, or theft of your engagement ring. Like auto insurance there are many different insurers and options. It’s possible your jewelry is already insured to a certain degree if you have homeowner’s or renter’s insurance. There are also companies that specialize in jewelry insurance.
Engagement Ring Insurance: Let’s Get Practical
Rings are made to be worn and accidents happen. Like auto insurance, you hope nothing negative happens when you’re “driving” your jewelry, but knowing you have financial protection while you’re out and about brings peace of mind to many jewelry lovers. There are two different types of insurance.
Reimbursement insurance compensates you for the “value” of the lost item, usually by cutting you a check. This is the way many homeowners’ policies work, but jewelry lovers should be advised that value is a tricky calculation. Depending on the policy depreciation may lower the payout, even though jewelry does not depreciate like other items. We urge you to be aware of the fine print.
Repair or Replacement insurance facilitates restoration or replacement of the lost item. As long as you are not underinsured, you should receive a piece of the same value and quality. Here again, jewelry lovers should mind the fine print. Some policies require you to work with their company’s repair service or jewelry broker. This is complicated by insufficient descriptions of cut quality on diamond grading reports, especially when it comes to fancy shapes.
Homeowner’s and Renter’s Policies
If you already have a homeowner’s or renter’s policy, you may already be insured up to a certain dollar amount for your jewelry, but that dollar amount rarely covers the cost of the average American engagement ring. If your policy provides reimbursement (cash payout) research the deductible and whether it assesses depreciation. If it’s a replacement policy (the item will be replaced) be sure it allows you to choose the jeweler who will replace your lost item.
Specialized Jewelry Insurers
There are insurance agencies that specialize in jewelry insurance, understanding the lack of depreciation as well as the complexities of diamonds and gemstones.
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.
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.
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.
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.
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.
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.
Your professional appraisal should include the following components.
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.
Modern appraisals should include at least one photo of the item.
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.
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.
Specialized Jewelry Insurers
Jewelers Mutual was established in 1913. Well-known in the industry, they are self-described as “Jewelry obsessed – we will love your jewelry piece or your jewelry business as much as you do.”
Jewelers Mutual: Honoring and protecting jewelry since 1913
Zillion is proud to insure all types of jewelry, including but not limited to engagement rings, with diamonds graded by GIA, IGI, AGS, GSI, & SGL.
According to Zillion, “You should have the freedom to wear your jewelry for any occasion, without worry… With Zillion jewelry insurance, you can wear your jewelry with confidence knowing it’s covered.”
Born from the experience of a third-generation jeweler, Brite Co. understands the needs of today’s customers.
Brite Co. has redesigned the jewelry insurance process from top to bottom by applying the latest in digital technology to solve the most common, nagging problems for those looking to insure their important pieces.
Ask Our Community
PriceScope members are extremely knowledgeable about jewelry insurance. You are welcome to ask our helpful community to share their jewelry insurance experiences with you.
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People also ask
If you use a jewelry-specific insurer you may be able to work with your original jeweler, or another of your choice. For the best online jewelers and diamond selection, start by reading our PriceScope Diamond Buying Guide.
The cost of insurance depends on many specifics described above. Be sure to begin at the top of the page. Once you are finished, check out our Diamond Price Guide to see how different factors impact a 1 carat diamond’s price. We have also included a diamond price calculator for you to see today’s prices in real-time, based on more than 500,000 diamond listed in our search engine.
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