Do You Need Ring Insurance?

Last updated on April 24, 2023

Our product recommendations are made independently, but we may earn affiliate commissions if you use a link on this page.

Choosing the right engagement ring can take time and patience. You may find one pre-made that suits what you are looking for or you may have designed it from scratch choosing a specific diamond and finding the ideal setting into which that diamond will sit.

Not only is this process costly in time but it can also be very expensive financially depending on what kind of diamond and setting materials you use in its creation. This is meant to be a meaningful piece of jewelry that should remain with you and your future partner forever. Sadly it doesn’t always work out like that.

You see rings can get lost or even worse stolen especially if they are particularly valuable. What do you do if this precious ring is broken or lost to you forever? You may have spent thousands on it and you don’t usually get a warranty for loss. You can perhaps have it repaired if it gets broken but once it is gone you are not getting that same ring back again unless you are really lucky.

In this article we are going to look at getting jewelry insured. This is a newer concept in order to help people to at least recoup some of the value of the ring if it is lost or stolen. The question is. Is ring insurance worth it? Are there any negatives to the process and how much can it help?

What Is Engagement Ring Insurance?

When that engagement ring is accepted it immediately becomes more than just a gemstone and some precious metal, it becomes symbolic. It is a symbol of shared love and commitment. It’s a future heirloom and it is a treasured item with which you will not want to part.

This is about more than money so insurance may be the last thing that pops to mind in fact you might not even know it’s a possibility. Well you can insure any piece of jewelry especially something as potentially valuable as an engagement ring.

So essentially ring insurance is a contract whereby you pay your premiums to have your valued item protected against the financial repercussions of damage, theft or loss. Within reason you can insure most types of jewelry.

If your engagement ring is damaged, stolen or simply lost and not findable then the insurance will help take care of things. Repair costs may be covered or the value of the engagement ring may be available to assist with the replacement of the item.

In all likelihood you will do your best to ensure the ring does not get damaged or taken from you but life happens and some things can not be avoided. If the ring is especially valuable and would be hard to replace from your own funds then frankly insurance is a no brainer.

How Much Does Ring Insurance Cost?

Before you even consider getting an insurance policy for your engagement ring you are going to want to have some idea as to how much you will be paying annually to protect your precious item. The good news is the answer is probably not as much as you might think.

At the most basic level you will be looking at premiums that start between 1 – 2% of the item's assessed value. That means a $20,000 engagement ring would be insured at $200 - $400 a year. This is of course not bad for something so valuable and considering that should the worst happen you would be paid out the value of the ring so you can repurchase the item.

However there are, as is always the case with any insurance, certain other variables which may increase or sometimes decrease the amount you may be paying each year. If for example you live in a geographical area where the insurance company has paid out claims frequently you may end up paying higher premiums.

You may also be penalized for frequently wearing the item out in the world because this of course increases the chance of damage, loss and theft.

On the other side of things there may be discounts available with certain companies based on your security measures. If you have a home security system you may get a discount. There are also deals for those who secure the item in a safe or a vault.

Another potential savings is having your diamond mapped by Gemprint. This is a system that can capture your diamond's fingerprint which can be handy in recovering the item should it be lost or stolen.

Each insurance company will have its own rules and fees so you will want to shop around to find the best deal but in terms of final price. Your annual premiums on an expensive piece of jewelry might well be worthwhile and likely will not break the budget too harshly.

You may not be able to get the exact engagement ring back but you can have it recreated with the insurance money should you wish to do so.

What Is the Value of Your Engagement Ring?

An engagement ring's value is obviously more than monetary, it is a symbol of a commitment between two people and means a lot to both of them. It could be argued that an engagement ring in emotional terms is priceless.

In materialistic terms however that ring is worth the sum part of its materials. The diamond and the precious metals from which it is made is what goes into the item's value. So what you paid for the item essentially is going to be its worth for insurance purposes.

Would that we could claim for the emotional loss of an item that we will likely never get back but this is not how the world works.

It is important then to consider the actual physical value of the engagement ring as a dollar amount before deciding to get insurance on the ring. Factor in that minimum yearly premiums to insure an item like an engagement ring can be around $25 - $30.

Now if you for example have a ring that in total costs $1000 with a 2% insurance premium on that you would hope to pay $20. With minimum premiums though you could be paying $5 - $10. This may not matter to you personally but your insurance deal will not be as good as some others.

As a rule of thumb it would be a personal judgement call for you to insure any engagement ring worth less than $2000. I know this can be a significant loss but sometimes you have to balance whether in the long run paying premiums on the item is worth it for something that may never happen.

Homeowners/Renters Insurance

Now there is the possibility that your engagement ring may be covered with homeowners or renters insurance if it gets stolen during a home robbery. You are often covered for loss of property and this can include jewelry.

It should be noted however that there are usually caps on how much you claim in certain property categories so this will only cover you for lower priced rings. A more expensive piece could see you lose out on money.

You of course are not covered if the ring is lost outside the home or stolen anywhere but in the house. It does however make sense with less expensive rings to just rely on what you are paying for homeowners or renters insurance to cover the loss. You may end up getting the same pay out from a home based insurance than an item specific policy.

Which Are The Best Insurers to Consider?

Finding the right insurance company is key to getting the best service and best rates. We have gathered together a few options for you to consider in your search for insurance on your valued ring.

Jewelers Mutual

In business for over 110 years Jewelers Mutual have a host of awards to their name to support their commitment to good business and as incredible employers. They have developed a great reputation in the industry and offer fantastic rates and easy applications.

Pros:

• No appraisals needed
• Short, easy application process
• Online quotes available
• Wide network of affiliated jewelers to work with

Cons:

• Premiums under $200 a year must be paid in full

BriteCo

BriteCo prides itself on having a great digital experience when it comes to their insurance. They have a vast network of jewelers who can appraise items to determine value for insurance purposes. BriteCo is excellent when it comes to covering all eventualities.

Pros:

• Policies include many covered perils
• Includes coverage for preventive ring maintenance
• Annually increases for inflation and metal/gemstone pricing
• Affordable premiums
• High coverage limits

Cons:

• You have to provide contact information to get an online insurance quote

WAX

If you are interested in a company that offers some of the lowest premiums then WAX may be the place for you. They offer unlimited coverage on Jewelry but also deal in other collectibles as well such as trading cards, handbags and even sneakers.

Pros:

• They offer the cheapest engagement ring insurance premiums
• Their ring insurance policies are underwritten by Chubb
• They offer unlimited coverage
• Coverage is available for accidental breakage
• Policies will pay cash at the agreed value

Cons:

• You need to use the app for instant online quotes
• There is no customer service phone number

Chubb

If you have a high value engagement ring then Chubb is the company for you as this is their specialty. They have had a long history in the security sector and offer great rates to protect all the important things in your life.

Pros:

• Some of the highest coverage limits for expensive rings
• You can file claims online
• There is an option for a cash settlements after a claim
• New jewelry pieces are automatically covered for 90 days

Cons:

• They are not big on giving discounts
• Quotes and applications are not available online

How Do You Insure a Diamond Ring?

The process of insuring a valuable diamond ring is pretty simple and starts as you may imagine by verifying the value of the piece. This will require an independent jeweler to appraise the ring and assign it a value that can be reported to the insurer. It is likely that the insurer will want a copy of this appraisal before you can buy a policy.

You will also want to be able to prove you have certain security measures and practices in place to try and get your maximum discounts on your policy. This might include showing that the ring will be stored in a safe deposit box or home safe when not being worn.

Armed with this information you will either have to go to an insurance office or fill out some forms online. You will be asked questions about where you live which may have bearing on the cost of your insurance.

As will all types of insurance if you live in a high crime area your premiums will reflect this. Remember insurance is a gamble. The insurer gambles that the ring will never be lost, damaged or stolen. That way they collect premiums and never have to pay out.

The higher the risk of having to pay out the more the insurer will want in annual fees to cover them.

Can You Afford to Replace the Ring?

This is a really good question that you should consider the answer to before you even think of spending money on insurance. In fact, determining whether you can replace any item out of your own funds should be a factor to consider before spending money on insurance.

The thing is that if you can easily replace an item should it be lost or stolen you might find that not bothering with insurance is the way to go. It’s a real risk vs reward situation. If you can afford to risk the possibility that something gets lost and stolen the reward may be that the worst does not happen and you never pay anything out to protect against it.

So if your ring was $1000 or less and you can afford to replace it you might be wasting money to insure it. There is no guarantee it will ever go missing and if it does you can afford to replace it. A more expensive ring however is worth insuring if you know you would never be able to buy it again.

In this case if the worst happens you can rebuy a similar item to replace the original with the insurance payout.

Final Thoughts

In this article we have taken a look into the world of insuring valuable items like diamond rings and have established they do not cost vast amounts to insure. The higher the value of the item the more you pay but this of course ensures that should it be stolen or lost you can afford to replace the ring.

Another important takeaway from this article is also that if an item has relatively low value it might not always be worth insuring. You can’t be compensated for sentimental value and you can’t get the same ring back so a low value piece might cost more to insure than its actually worth.

Reference Diamond Size Chart

If you use any of the definitions, information, or data presented on Diamond Size Chart, please copy the link or reference below to properly credit us as the reference source. Thank you!