Besides the monetary value of engagement rings, we also attach emotional value to them. This is especially true if the engagement ring is an heirloom that has been passed down for generations. So would we want to risk losing one? Absolutely not! None of us would want to come home from the beach one day only to realize that the ring that was supposed to be on our finger got washed away with the waves. ServiceMarket has written this brief guide for couples on how to go about insuring this precious asset.
The options
Personal belongings cover
If you have personal belongings insurance your engagement ring might already be covered by it. This is a type of home insurance which provides cover for the replacement or reimbursement of valuables worn or carried on person, which of course includes jewelry. The issue with this option is that it only covers your valuables up to a certain dirham amount, a portion of which would be for jewelry. Therefore, if your engagement ring is a high-value piece, it is better to go a different route.
A rider
Your next, and of course better, option is to ask your home insurance company if they provide extended coverage for high-value items. This is called a rider. If you opt for this, your engagement ring will be covered specifically. Some house insurance companies, however, have terms for the rider that you might not be happy with. For example, the extended coverage policy might stipulate that the company’s jeweler will be used for repair, maintenance or replacement. Most people prefer going to their personal jeweler instead. So make sure that you read the fine print and ask the right questions to prevent any surprises in the event of a claim.
A separate policy
Another option that you have is to opt for an entirely separate policy for your engagement ring. This can be done through a company that specializes in jewelry insurance. The benefit of doing this that you will end up with a broad policy that offers coverage in most situations, unlike personal belongings insurance where you might just be covered in case of theft and/or loss. Couples that own a pricey ring should go this route.
What will you need
Now that you know your options, you need to have some documents ready to submit to your insurance company.
Appraisal
The first thing that you need to do is to get a gemological appraisal of the engagement ring from a certified gemologist. This will cost a small fee. The valuation document will provide a detailed description of the piece of jewelry that is going to be insured as well as a replacement value. This will help ensure that you know the true value of the ring and protect you from under insuring it. Your insurance company would need proof of the appraiser’s certification along with the appraisal.
Proof of purchase
You will also need to provide proof of purchase. Most jewelry seller’s provide a detailed sales receipt.
Photographs
Insurance companies also require high resolution photographs of the ring along with the other documents. Even if that isn’t a prerequisite for the company you chose, it is a good idea to take the photographs and submit them anyway.
Besides submitting these documents to the agent, you should keep copies for yourself in a safe place, whether a bank safe or a fireproof safe at home. Moreover, remember that the replacement value of jewelry can change substantially, even within a year, due to changes in exchange rates and the price of gemstones and metals. Therefore, you should get an appraisal done at least once a year and submit it to your insurance company to make sure you’re covered to the fullest extent.
Policy questions to ask
Whichever option you decide to go for, after all it depends on the ring you own, the value you attach to it, your lifestyle and your budget, you need to know all the terms and conditions that come attached with the coverage. So here are some questions that you shouldn’t hesitate to ask your insurance agent:
- Will the ring be insured for its full cost or a part of it?
- What are my deductible options?
- In what circumstance would the ring not be covered?
- What does the claims procedure look like?
- What documents would I need to make a claim?
- Do you offer replacement or only reimbursement?
- Is repair and maintenance covered in the policy?
- Will I get worldwide coverage?
- Which jeweler will be used in case of repair, maintenance or replacement?
- How do you handle claims for irreplaceable, heirloom engagement rings?
Just make sure that all your concerns are addressed before you sign on the dotted line. Your investment needs to be protected in every way that you want it to.
*Replacement value of jeweler can change substantially due to changes in exchange rates and the price of gemstones and metals. Get an appraisal done yearly.
