How To Insure Your Engagement Ring

POST by The Great Heights Team

Now that you've sealed the deal, you might be wondering; what happens if I lose my ring? We've got you covered.

But navigating the world of jewelry insurance can seem complex at first. The questions are endless: What documentation do you need? Will homeowner insurance cover diamonds? How much should your deductible be?

Step One: Secure Your Documentation

The most critical part of getting diamond insurance—regardless of whether you purchase a lab-grown or mined diamond—is having the original invoice or lab certificate. These types of documentation prove that the diamond that you are getting insured is a real diamond, and not a similar rock like moissanite. It also proves that you are its rightful owner.

Ownership evidence. When you purchase your diamond, keep any and all documentation stored in a safe place. Additional electronic copies can come in handy as well, especially if you live in a disaster-prone area.

Visual evidence. Take thorough pictures of your stone so you have visual evidence of what it looks like. Capture pictures of as many angles of the ring as you can manage and zoomed-in photos for details.

All of this documentation should be secured as quickly as possible after the purchase of your lab-created diamond ring.

Step Two: Get An Appraisal

In addition to this initial documentation, you’ll also want to find a trusted local jeweler who can evaluate your ring separately.

Insurance companies rely on jewelry appraisers, who are bound by the Uniform Standards of Professional Appraisal Practice, to provide a fair appraised value for your jewelry. The appraisal will cost around $50, depending on your location.

When choosing your jeweler, ensure that he or she can provide proof of a graduate degree in gemology, membership in a national appraisal society, and a well-established business. Look to Google and Yelp for reviews, too.

Step Three: Review Your Existing Insurance Policy

There’s a good chance that one of your current insurance policies, such as homeowners or rental insurance, may cover your diamond ring as well.

Call your insurer and ask about adding your engagement ring to your current policy. In a few cases, it may already be covered, but you will most likely need to insure your ring through a “rider” that is added on to your homeowners or renters policy. This way, coverage is specifically assigned to your ring.

This is the easiest way to get insurance, but even if it’s possible, you may want to look into separate insurance policies as well, just to ensure you’re getting the best deal.

Step Four: Find A Separate Insurance Policy

If your lab-created diamond ring isn’t already covered by a current insurance policy, or if it can’t be covered with a rider, you’ll need to search for an alternative policy.

The easiest way to find a reputable insurer is by asking the store from which you purchased the ring; they will know of companies that have good reputations. In general, referrals from diamond-sellers will be trustworthy.

If your original store doesn’t have any recommendations, analyze online reviews or word-of-mouth recommendations to find a good jewelry insurer. Contact one of their representatives to learn what rates they offer based on your ring’s official value.

Throughout this process, ask questions to ensure you’ll get the coverage you need, like:

  • How much of the ring will be covered?
  • Are there any circumstances in which the ring isn’t covered?
  • Is your ring covered if you lose it, or only if it's stolen? How do you prove that it’s been stolen or lost?
  • Will the insurer replace the ring with a check, or by direct deposit? Will you need to obtain a replacement through an insurer-approved jeweler? How similar will the replacement need to be to your original ring?
  • How does the company handle unique rings, like vintage rings?

Once you’ve found a company that provides satisfactory answers to these questions, you have a few more vital tasks to complete.

Step Five: Choose A Deductible

Like with any insurance, you’ll need to choose a deductible, which is the amount you pay to replace or fix your lab-created diamond ring before the insurer pays for the rest. Many insurers offer a wide range of deductible options.

A higher deductible will mean you pay less each month for the insurance, but will pay more when trying to replace your ring. A lower deductible means you pay more each month, but pay less for replacement.

Ultimately, expect to pay around $1 to $2 for about every $100 your ring is worth. (In other words, you can anticipate a premium of around $100 to $200 annually.)

Step Six: Complete Final Paperwork

Your insurer will have paperwork for you to fill out and specific requests for documentation, such as your appraisal.

While you should certainly send in all of the required paperwork, do not feel afraid to also send any additional certificates or pictures. The more paperwork you have for ring, the better.

Still have questions? We’re happy to help.