Engagement Ring Insurance

It’s happened. You and your partner have decided to make things official 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.

Losing an engagement ring, however, can not only be mentally distressing but also financially distressing. An engagement ring insurance policy may help ease that financial heartbreak, and offer peace of mind in the event that your ring is stolen, damaged or lost.

So, what options are available for insuring your sparkling new addition?

When should an engagement ring be insured?

Engagement ring insurance can generally be taken out any time after the ring itself has been purchased. Due to the cost of engagement rings, you or your partner may want insurance coverage as soon as the ring leaves the jeweller’s shop. Generally, the person who first has the ring in their possession may be the best person to take out an initial engagement ring insurance policy.

How do I insure my engagement ring?

There are typically two ways you can insure your engagement ring:

1. Under your contents or combined home and contents insurance policy
2. 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 in 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 a 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 insurance provider to set an exact sum insured amount that you want your ring to be covered for. This is usually in exchange for an increased premium. To do this, your provider may require you to supply a valuation certificate and proof of purchase for your engagement 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 policy’s Product Disclosure Statement (PDS).

If your provider offers portable contents insurance, you may be able to add it to your existing home and contents insurance 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: How much should I insure my house for?

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, but the premium may cost you more.

How much does engagement ring insurance cost?

It’s difficult to give a generalised estimate of how much engagement ring insurance will cost you, 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 engagement ring insurance options, consider asking your potential insurance 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 any insurance policy you are considering, as well as 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.

Who should insure the engagement ring?

If you decide to take out cover through your home and contents insurance policy, this can usually provide cover for both the policyholder and their spouse or partner if they both live at the same address. If you don’t live together, generally the ring should be insured by whoever is in possession of it. You may need to update your policy if your living situation changes.

Keep in mind that if you are both listed on the policy, any changes made to it may notify both policyholders. This may ruin your surprise engagement plans. You may be able to talk with your insurance provider to ensure that correspondence is postponed till after you pop the question.

Ring valuations

Before deciding on which engagement ring insurance option to go with, it may be worth getting your ring 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 may 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.

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Additional reporting by Nick Whiting.

Cover image source: Kwangmoozaa/Shutterstock.com