How much does it cost to insure an engagement ring?

Engagement rings are valuable and costly belongings and they should be insured. Yearly, there are numerous reports for loss, damage, and theft of costly engagement rings. To many people, Engagement ring insurances are confusing, and some people even don’t believe in the necessity of engagement ring insurance policies. As an experienced designer in the jewelry industry, I advise you to get your diamond ring insured, as soon as possible.

How much does it cost to insure an engagement ring? Insurance costs are only a fraction of the actual value of an engagement ring. To insure your engagement ring, you need to pay $1 -$2 for every $100 of ring value, annually. Some couples consider engagement ring as money investment. So, paying for insurance is a wise decision to protect the ring.

Now that you know the importance of  Diamond ring insurance, you may be considering applying for diamond insurance policies. If you are thinking about insuring a diamond ring in Chicago and you do not know much about the cost, features, and the process, don’t worry! Below, we have provided you with some details to secure your ring from possible loss, damages, and theft.

How do I get insurance on my engagement ring?

There are a variety of ways to apply for Diamond ring insurance. One option is to get a rider or extension in your existing homeowner’s insurance. For this purpose, you should go to your existing homeowner’s or renter’s insurance and ask for jewelry insurance cover. Please note that in homeowner's or renter's insurance policy, they don’t automatically cover all pieces of your jewelry, unless you ask for an engagement ring or jewelry coverage.

Insurance riders provide a higher coverage limit and protection against potential risks. The other option is to insure each piece of jewelry, separately under scheduled jewelry insurance under a jewelry insurance company. These companies only insure fine jewelry or precious stones. In these companies, you can insure any jewelry piece, separately.

The advantage of this kind of jewelry-insurance company is that your overall insurance cost stays more reasonable. Whatever option you choose, you need to make sure that you are dealing with a reputable insurance agency with adequate coverage for your piece.

Is it worth it to insure an engagement ring?

It is worth to insure an engagement ring as they worth thousands of dollars and in case of theft, loss, or damage you lose that money, all at once. Couples usually spend thousands of dollars on engagement rings and wedding bands, while homeowner insurance on jewelry pieces will only cost just a fraction of the item's worth. Diamond engagement ring insurance offers financial protection and peace of mind; in case something happens to your engagement rings.

Usually, in big cities, the risk of theft and damages is higher, therefore, spending a bit more to insure the engagement ring is a wise decision. These accidents are so especially heartbreaking because engagement rings are considered to be the sign of commitment and love. Also, engagement rings can be a type of financial investment because of their high and fluctuating value. Therefore; in case they are properly insured, you can also recover from some of the worries of financial issues should they occur.

Which engagement insurance option is better?

As mentioned earlier, there are two ways of insuring your jewelry:

In the first option, you add a jewelry rider to your existing homeowner’s or renter’s insurance policy. In this case, these insurance policies cover up to a certain dollar value. For example, you may have a $15,000 insurance contract for unscheduled personal property. In this case, if someone breaks into your house and steals your jewelry and your home furniture with a value of $25,000, you are, sadly, $10,000 under-insured.

Therefore, you need to either insure all your jewelry separately under scheduled jewelry insurance or increase the homeowner’s or renter’s policy limit in return for a higher insurance cost.

Under scheduled jewelry insurance, you insure your jewelry items separately. Scheduled jewelry insurance can be attached to the existing policy or it can be completely separate. In scheduled jewelry insurance, you can insure your jewelry at a lower cost.

How much does it cost to insure a $10,000 ring?

As a general rule, for every $100 of ring value, you should pay $1 to $2, annually. Usage (how often you wear that piece), where you live, geographical coverage area, and insurance plan deductible are critical factors that determine the rate of your insurance cost. For example, it costs about $100 - $200 to insure a $10,000 ring. The 100-dollar insurance cost is not a large figure in comparison to the troubles of lost, damaged, or stolen pieces of jewelry.

Often insurance companies offer deductibles with their engagement ring policies. We recommend you choose a low deductible if you or your partner are living or traveling to big cities or participating in activities with high chances of damages to the ring.

For example, in certain professions such as medical doctors or nurses, scuba divers, etc. there is a high chance of losing or damaging the ring out of carelessness or accidents. On the other hand, if you are living in areas where the crime rate is low, you can opt for a higher deductible which can save you more money in the long term.

In homeowner’s or renter’s insurance policy, depending on the total value of your contract and your insurance company rates, you will pay more premiums. In this way, your insurance costs will rise higher in comparison to the scheduled jewelry insurance method.

What kind of documents do I need to get my ring insured?

Insurance companies need several documents to apply for an engagement ring insurance policy. Below, you can find the standard documents to insure your jewelry:

1- The original receipt of that piece: Sometimes, the original receipt of the jewelry is not available. For example, you may not have access to the receipt of jewelry you inherited from your grandparents or a piece of gift jewelry. In this case, do not worry. You still can provide a good appraisal document. Appraisals are typically more important.

2- Relevant Certificates: For stones with half a carat weight or larger, you need to ask the jeweler to provide a diamond certificate or grade report from an independent gemological laboratory. For such reports, some repeatable organization are accepted. Most insurance companies request to get certificates from two well-known laboratories: The Gemological Institute of America (GIA) and the European Gemological Laboratory (EGL). These laboratories assess your diamond’s 4C: Color, Cut, Clarity, and Carat.

Certificates are important documents for insuring your jewelry. They contain some crucial data of your diamond characteristics. 

An appraisal: This document is mostly requested for more expensive items. You may receive an appraisal, on the date purchase but if not, you’ll need to get a third-party appraiser who will verify and assess the details and description about the value of the item, for insurance purposes.

ü As far as jewelry is subject to steady appreciation in value, get a reappraisal, every few years. if you have documented an old appraisal, you will not receive a ring or payout equal to the current worth of your engagement ring.

When you decide to buy an engagement ring or attempting to get an appraisal from a jeweler, make sure you refer to a reputable location. This tip is very important because issuing appraisals need lots of experience. Otherwise, you are in big trouble when you happen to claim your jewe

This highly depends on your insurance plan. In a good plan, the insurance company will cover the full value of your jewelry. If they accept your claim, you will receive either actual cash value or a replacement cost, mostly including sales tax. To be more specific, please pay attention below for definitions of actual cash value and replacement cost:

Replacement cost is the “Amazon price” of a given item as an updated- value of a brand-new item without deducting the depreciation. In other words, how much it costs to replace (or repair) a similar item in terms of quality, brand, model and detailed characteristics. the replacement cost is, however; limited by a maximum dollar amount that is mentioned in policy documents. Be careful to check if your insurance policy includes a replacement option and check the dollar amount limit.lry from the insurance company. To  find a good place to buy an engagement ring, consider these tips.

3- Pictures: usually, there are some pictures of your jewelry in the appraisal. However, provide some detailed pictures of the piece, for your records.

How does ring insurance work?

The Actual cash value is the “eBay price” of the used items or the value of a similar item taking depreciation into account.

ü Please note in case you missed a piece of diamond jewelry, there is a huge difference between replacement cost and actual cash value.

ü Also remember, in case your ring needs to be repaired or replaced, the insurance company may introduce a specific location to repair, even if your ring is a customized one

Most insurance companies cover all events of damage, theft, accidental loss, and mysterious disappearance, as well as other ‘perils’ such as fire, windstorm, etc. By accidental loss, we mean accidentally losing your ring in a situation beyond your control. For example, if you lose your jewel in a car accident and you notice that it can no longer be repaired. Mysterious disappearance can occur when you misplace your jewelry piece and you are not sure whether it is stolen or misplaced.

Please be aware that companies use different language to describe what incidents they cover. Be sure to carefully read through the insurance policy options to learn about their coverage extent and compensation options, in case anything happened to your ring. Please be aware that companies use different language to describe what incidents they cover. Be sure to carefully read through the insurance policy options to learn about their coverage extent and compensation options, in case anything happened to your ring.

Who insures his/her engagement ring?

We believe all couples who own jewelry with high financial and sentimental value, should insure their belongings. In this new, modern life both men and women are spending time in crowd places, where there are high chances of stealing pricey jewelry.

Also, everyone may misplace their engagement ring or lose them accidentally. Therefore, insuring pricey jewelry is a wise decision for all. In such circumstances, insurance companies assist you with replacing the engagement ring and provide peace of mind for people.

Even though you insure your engagement ring, you should take good care of it, to avoid further problems. Engagement rings are precious, both financially and sentimentally.

Click here and I'll give you  tips for engagement ring care. 

How much should someone spend on an engagement ring?

Some say one should spend one-to-two-months’ salary on engagement rings. However, there is no fixed instruction. The average cost of an engagement ring is currently $5,900. To buy an engagement ring, you need to assess your partner's desires and allocate a reasonable budget based on your income.

Do you have to propose with a ring?

There is no set rule to propose WITH a ring, proposals without rings are also memorable! Flowers are also romantic replacements for proposal purposes. In these cases, the couple can design the ring together, let their loved one choose the ring or agree on buying the ring later, for low-budget reasons.

Is it common for diamonds to fall out of the ring?

It is common for diamonds to fall out of the ring. This is more common in some settings than others and when the diamond gets hit , unwillingly. Even in most secure settings, you are not fully protected so be sure to take care of the diamond ring, when you wear it! Also, do not wear the ring in places where there is a high risk of damages.

Where to buy a diamond ring in Chicago?

You can buy the best diamond rings at Wedding Bands & Co. in Chicago. After consulting with experts in our design department, you can design your customized engagement ring, unique to you and your relationship. You also can find various pre-made designs in our showroom, for people who are looking for a range of unique and traditional diamond ring designs.

Why should I come to you to design my ring?

We involve you in every step of the process. At first, we will sit next to you and go over any concerns you have and any specific design elements you mind the ring to have. Once we have established exactly how you want the ring looks like, we will proceed with the design process. Once you see this design, if you want to make any change or if you have any questions or concerns we will be happy to address them for you. Our role is to help you to create the perfect ring and that means we will listen to you and make sure that your ring is indeed one of a kind.

We'll help you to design your dream engagement ring without stress and spending countless hours searching for your perfect ring. All you need to do is click on "Free Consultation" to get started.

By: Koorosh Daneshgar CEO/Design Chief