Should You Insure Your Wedding Ring?

Should_You_Insure_Wedding_RingYour man has finally popped the question, and he did it with a stunning ring that looks like it jumped right off of your Pinterest board! With newly manicured nails, you can’t stop showing it off to friends, family, and social media followers, and everyone is just as stunned as you are. Engagement rings are iconic symbols of love and commitment, but they are also expensive investments. With the average cost of a wedding ring coming in at $6,163, according to The Knot’s 2016 Real Weddings Study, it’s worth asking yourself if you should you insure your wedding ring. We have the pros and cons.

The Cons to Engagement Ring Insurance

To obtain any form of insurance coverage, you must pay a monthly or annual premium. That means that to insure your ring, you will have to take on a recurring cost for a policy you may never (hopefully) need to use. The annual cost to insure an engagement ring on a separate insurance policy associated with your homeowner’s insurance, known as a rider, is $1 to $2 for every $100 that it would cost to replace the ring. That means your $7,000 ring may cost between $70 and $140 annually to insure. While that may not seem like a significant financial investment now, that $140 may start to feel like an unnecessary cost in a few years when you’re paying astronomical amounts for diapers, daycare, and baby everything.

Should_You_Insure_Engagement_Ring

The Pros to Engagement Ring Insurance

Whether your fiancée custom designed your ring or bought it off the rack at a jewelry store chain, it’s one-of-a-kind because it’s what he held in his hand at the moment he asked you to be his for a lifetime. No matter how much the ring cost, several risk factors could threaten the safety of your investment, including:

  • Theft if your home is vandalized
  • Theft while traveling
  • Property damage including fire, flood, earthquakes, or sinkholes, depending on where you live
  • Loss, meaning you misplaced it and you don’t know when, where, or how

With an insurance policy, you can purchase a replacement (and no, it will never really be the same), with a minimal financial loss.

Could You Already Have Coverage?

Some couples choose not to purchase additional insurance if they have proper coverage under their homeowner’s or renter’s insurance policy. To confirm, check your insurance policy to see if it includes personal property coverage. Know that some policies cap the protection on specific pieces of personal property, including jewelry, which means you may only be covered up to $2,000. Also, know that your policy may specify under what terms the ring is covered. That means it may be covered in the case of fire, flood, or theft, but not if you accidentally knock it down the drain while washing dishes. If you decide you want to insure your engagement ring, and your homeowner’s or renter’s policy does not provide adequate coverage, talk to your insurance agent about adding a valuable items supplement policy. Then, proceed with social media posts that show off that gorgeous ring!

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