Congratulations! You decided to get engaged, buy a ring, and make a plan.  But does your plan include insuring the ring you spent money on? Though insurance can be an afterthought, the money you spend is not.  Make sure you add insuring the ring into your romantic plan.💖

The Do's and Dont's of Engagement Ring Insurance

Do - Get Jewelry Insurance 

The easiest way to purchase insurance for a ring or other jewelry is to add it to a homeowner's or renter's insurance policy. Most people who own a home have homeowner's insurance, but if you are a tenant, you can easily purchase renter's insurance through an insurance agent, such as HPM Insurance.

The cost is likely less than you think (often around $20/month) and will cover your personal belongings, including TV, furniture, clothing, computer, etc., in a covered loss.

To add the ring to a home or renter's insurance policy, you will need an appraisal and/or a receipt with a description of the ring. This benefits both you and the insurance company because if the ring were lost or stolen, could you describe its details, such as cut, color, clarity, and carat? Having an appraisal or detailed receipt means everyone is on the same page about what you own.

The cost for insuring jewelry can vary by carrier but is often reasonable at around $9.00 per $1,000 of appraised value. 

Don't Forget Who Owns the Ring:

If you give someone a gift (like a ring), who owns it? That is a pivotal question and even more essential if you and your fiance do not live together or both parties are not listed on an insurance policy.

One of the fundamentals of property insurance is ownership because you can not insure something you do not own.

Working in the insurance industry, we have seen problems arise when the ring buyer files a claim for a stolen ring only to discover there is no coverage when the insurer determines they did not own it at the time of loss.

We have also seen an issue arise when two people live together, and the insurance is only in one person's name. If the other person owns the ring, there may not be coverage.

The best way to navigate these issues is to speak with your insurance agent about your situation.  The agent can likely find a company willing to work with you and your situation.

Do Get Updated Appraisals:

Jewelry, and especially diamonds, typically only appreciate over time. As jewelry coverage is based on the appraised value, you will likely need to get your jewelry reappraised every three to five years to ensure enough coverage to replace it should it be stolen or lost.

Don't assume if you always wear your ring, it doesn't need insurance:

"But I never remove my ring, so why would I need to insure it?" This is a common statement the agents hear at HPM Insurance. Though this may be true, the loss of a stone can occur whether you take the ring off or not.  If the ring is not scheduled there would likely not be any coverage for such a loss.

"I Do." Other insurance considerations when you get married:

Getting married is a commitment legally and financially, so it impacts insurance in numerous ways, such as:

Car Insurance - you should consider combining your car insurance policies into one policy to qualify for the multi-car credit and a marriage credit if available.

Home or Renters Insurance - you are typically both considered "insureds" as you are now related.

Life Insurance - You rely on each other, so life insurance should be considered to protect your spouse should something unexpected occur.

Health Insurance - By changing your marital status, you are likely changing your health insurance options.

Contact HPM today for your engagement ring or other insurance needs. We'll help protect you and your spouse for life!