Getting engaged can be one of the most memorable times of a couple's life. Having a burglar break into your home and steal the engagement ring, however, can be devastating.
The good news is that with a little advance planning, your homeowners or renters insurance policy may help cover the cost of a stolen engagement ring or wedding ring, including the diamond.
HOW TO INSURE AN ENGAGEMENT RING
When thinking of insurance for an engagement or wedding ring, a primary question might be: Who should buy the insurance — the person who purchased the ring, or the recipient? The answer lies in the current ownership — if the couple isn't living together, then the person who is currently holding onto the ring, whether on a finger or at home, is the person who should insure it.
So, let's say Tony bought an engagement ring for Melissa, but has yet to present it to her. At this point, the ring is still his personal property. In this case, he needs to make sure the ring is covered under his homeowners, condo or renters insurance policy. Once he proposes and Melissa accepts the ring, Melissa owns the ring. It is now Melissa's personal property. So Melissa needs to purchase coverage for her ring under her homeowners, condo or renters policy.
HOW IS JEWELRY COVERED? ARE THERE LIMITS?
A standard homeowner’s insurance policy typically covers personal property for 50 to 70 percent of the amount of insurance you have on the structure of your home, according to the Insurance Information Institute (III). For instance, a home with $100,000 worth of insurance on the structure would typically have between $50,000 and $70,000 worth of coverage for personal belongings such as clothes, computers, sports equipment and, yes, items like jewelry.
However, some categories of personal property have a maximum dollar limit your insurance company will pay in the event of a covered loss, like theft. Jewelry and certain other valuables are covered, but usually up to lower dollar limits if they're stolen — typically between $1,000 or $2,000 per item of jewelry, according to the III.
If you own valuable jewelry like an engagement ring, you can buy a "floater" or "endorsement" — essentially an add-on — to your existing homeowners or renters policy. This additional protection, called scheduled personal property coverage, may help reimburse you for up to the appraised value of the ring if it is stolen.
So, if you're planning an engagement, be sure to talk to your insurance provider about your current personal property coverage limits and what options you have to help protect your investment.