Engagement Ring Insurance
Losing an engagement ring can not only be a mentally distressing event but likely financially distressing too. So, is there a way to insure such a precious piece of item?
Losing an engagement ring can not only be a mentally distressing event but likely financially distressing too. So, is there a way to insure such a precious piece of item?
It’s happened. Your partner has listened to Beyoncé’s message, and now sitting proudly on your left hand is a sparkling engagement ring. This isn’t just a glitzy piece of expensive jewellery, but a symbol of mutual commitment.
That is, until one day you just can’t find it anywhere. Losing an engagement ring can not only be mentally distressing, but also likely financially distressing. An insurance policy that covers your engagement ring may help ease that financial heartbreak in the event that your ring is stolen, damaged or lost.
So, what options are available for insuring your sparkling new addition?
How do I insure my engagement ring?
There are typically two ways you can insure your engagement ring:
- Under your contents or combined home and contents insurance policy
- Through specialised jewellery insurance
1. Engagement ring insurance via contents insurance
Most contents insurance or combined home and contents insurance policies will provide a level of cover for your engagement ring if it is lost, accidentally damaged or stolen while within your home. Your insurer will typically set a limit on the total amount you can claim for your ring and, depending on your policy, this amount may not always be enough to cover the cost of replacement.
For example, if you lose your $8,000 diamond engagement ring, you may only be covered for up to $1,000 for that item.
If the amount of cover is insufficient for the value of your ring, you may be able to apply for additional cover by listing or specifying the ring on your policy. This means working with your insurer to set an exact sum you want your ring to be covered for. This is usually in exchange for an increased premium. To do this, your insurer may require you to provide a valuation certificate and proof of purchase for your ring.
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Can I get cover for my ring when I wear it away from home?
The majority of standard contents or combined home and contents insurance policies will not cover your engagement ring when you are wearing it outside of your home.
If you want this type of cover, you could check to see if your provider offers portable contents insurance, also known as personal effects insurance. Depending on your policy, this type of insurance could provide cover for accidental loss or damage to your engagement ring when you are away from your home, and sometimes even when you’re overseas.
However, it should be noted that there’s often specific terms and conditions that need to be met for claims that occur outside of Australia. You can find these finer details in your insurance Product Disclosure Statement (PDS).
If your provider offers portable contents insurance, you may be able to add it to your existing home and contents policy. But, a limit on the amount you can claim for your engagement ring may apply. If you need additional portable contents cover, consider checking if you can specify your ring to cover its full value.
Related article: How Much Home & Contents Insurance Do You Need?
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If you’re comparing contents insurance policies, the comparison table below displays some of the policies currently available on Canstar’s database for an Australian aged under 50, seeking cover in NSW or the ACT for a cost to replace contents of below $75,000. Please note the table is sorted by Star Rating (highest to lowest), followed by provider name (alphabetical) and features links direct to the providers’ websites. Consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), before making a purchase decision. Contact the product issuer directly for a copy of the PDS and TMD. Use Canstar’s home insurance comparison selector to view a wider range of policies. Canstar may earn a fee for referrals.
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Consider the provider’s detailed product and pricing information before making a decision to purchase a policy. The products displayed on this page do not include all providers and may not compare all features relevant to you. View the Home Insurance Methodology and Report. The Star Rating shown is only one factor to take into account when considering products.
2. Engagement ring insurance via specialised insurance
If you would prefer to insure your engagement ring separately to your contents or combined home and contents policy, you can do so through standalone specialist jewellery insurance.
Policies from specialist jewellery insurance providers tend to carry a higher level of cover than what is on offer from standard contents insurance, and the premium may cost you more.
What does engagement ring insurance cover?
Your level of cover will depend on the type of insurance you take out. Whether you take out a policy under your home and contents insurance, or with a specialist engagement ring insurance provider. Events such as loss, accidental damage or theft, will generally be covered if it occurs inside of your home.
You must have portable contents insurance if you wish to be covered for events that occur outside of your home.
Additionally, specialist engagement ring insurance providers may often offer the following additional cover:
An agreed value policy
Specialist insurers may be more likely to provide agreed value cover. This means that they will pay the actual amount shown on your policy minus the excess if your ring is lost or stolen. This is in comparison to some insurers who may impose a cap. They may also choose to replace your ring at the lowest price they can buy it for at the time of your claim.
Additional replacement cover
If the replacement value of your ring has increased due to changes in the exchange rate or the cost of materials, some specialist insurers will cover you for an additional amount on top of the agreed value typically up to an extra 25-50% to help cover the difference.
Free annual revaluation
Under some policies, you may be able to have your engagement ring revalued annually at no additional charge. This can help you ensure your ring is insured at the right value.
Worldwide cover
Some specialist insurers may offer coverage worldwide, so if your ring is lost, damaged or stolen while travelling abroad, you’re still covered. This benefit may only apply for a certain period of time under some policies, so check your PDS for details.
Repair and replacement at your preferred jeweller
Included as a feature in some specialised engagement ring insurance policies may be the option to replace or repair your ring at a jeweller of your choice.
What does engagement ring insurance not cover?
Exclusions for your engagement ring insurance will depend on a range of factors, such as whether you take out cover with a specialist insurer or through your existing contents policy level.
There are some common exclusions across policies that may apply. These can include:
General wear and tear and inherent defects
Most insurers will not cover loss caused by wear and tear, gradual deterioration, rust, warping, shrinkage, corrosion, bacteria, structural defects or poor workmanship.
Existing damage
Generally, insurers will not cover any loss or damage which occurs to your ring prior to the period of insurance.
Cleaning and renovations
Some insurers may not cover any loss or damage caused by or arising out of the process of cleaning or repairing your ring; or from alterations you have chosen to undertake on it.
Lawful confiscation
Insurers generally will not cover the confiscation, destruction or seizure of your engagement ring by any government or public authority.
Intentional acts
Most insurers will refuse claims arising from loss caused intentionally by a person named in the policy, as that person’s spouse, a family member or a person they live with.
Lost jewellery
Some insurers may not cover an engagement ring that has been mislaid or is missing where there is no single identifiable event to account for the disappearance. But this exclusion may not apply to rings insured under portable contents or specialist jewellery insurance.
There may also be exclusions surrounding loss due to theft. These may relate to circumstances such as the security of your home at the time your engagement ring was stolen and if you fail to report the theft to the police.
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How much does engagement ring insurance cost?
It’s difficult to give a generalised estimate of how much engagement ring insurance will cost, as there are so many factors that could influence the cost of premiums:
- What type of insurance you choose. Is the cover under your contents insurance policy or through a specialised jewellery insurance firm? The latter will generally cost more than standard contents insurance coverage.
- Level of cover and optional extras. If you choose to specify your engagement ring on your contents policy or add portable contents cover, you will likely pay more on your premium. Some specialised engagement insurance policies also offer the option to add additional jewellery or watches to your cover, which if chosen, will also increase your insurance costs.
- The value of your engagement ring. Generally, the more expensive your engagement ring, the higher the premium will be to cover it.
- Where you live. If your address is in an area with a high theft rate, then your premium may be affected.
What to ask your insurance provider
When researching options to insure your engagement ring, consider asking your potential policy provider these questions:
- What limits apply per item under my contents insurance? Is it enough to replace the value of my ring?
- Can I specify or list my ring under contents insurance for full cover?
- Am I able to insure my ring when I take it outside of my home?
- Can I get my ring replaced or repaired at a jeweller of my choice?
- What can I do if the cost to replace my ring has surpassed the agreed replacement value? Is there a way to get more cover?
- What evidence is needed to support a claim?
Before making any commitments, make sure to read the Product Disclosure Statement (PDS) of the insurance policy you are considering and check the list of general exclusions and any excess that may apply.
To find engagement ring insurance that meets your needs and budget, consider comparing quotes from a range of providers and assessing the pros and cons of each of your options.
Ring valuations
Before locking in insurance for your engagement ring, it may be worth getting it professionally valued. This is so you are aware of the cost of the ring and can use the valuation certificate as evidence when making a claim. You can also use it if you choose to specify your ring under your contents insurance.
Some jewellers may charge a fee for producing a valuation certificate upon purchase of your ring. For pre-owned engagement rings, consider using a registered valuer or one with appropriate qualifications for assessing jewellery.
It is also recommended by some insurance providers that you update your ring valuations every few years to ensure it reflects any potential price fluctuations of your precious gem and metal.
Making a claim
As soon as you become aware of the loss of or damage to your engagement ring, it is important you advise your insurer immediately and provide any evidence they require to assess your claim.
The evidence that would be requested can include proof of ownership (receipts, photographs), proof of value (valuation certificate) and, if the loss is caused by theft, a police report.
Originally by Elise Donaldson, additional content and updates by Karen Yang
Cover image source: Jirawat Cheewaphaiboonsil/Shutterstock.com
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This article was reviewed by our Content Lead, Canstar Mandy Beaumont before it was updated, as part of our fact-checking process.
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