So you got engaged for Valentine’s Day — congrats!

Or maybe your sweetie surprised you with that rose gold bracelet you’ve been subtly dropping hints about for months.

Or, perhaps you’re the jewelry buyer, and wondering if you should purchase insurance on your hefty new investment?

Today, we’re talking about jewelry insurance; namely, engagement ring insurance (but these rules pretty much apply to any expensive piece of jewelry).

What it is:
Just like your other insurance policies, ring insurance covers your ring in the event of theft, loss or damage. Engagement rings can cost several thousand dollars (recent surveys put the average cost around $6,000), so this item is a significant investment for most people.

Where to buy:
You can choose to protect your ring on your existing homeowner’s policy, or purchase ring insurance through a company which specializes in jewelry insurance. (What’s the difference? The specialized insurer may offer more coverage than a standard homeowners policy, like replacing a lost or stolen ring rather than paying a set amount of cash.)

What to consider:

    •    Is the ring covered if you lose it accidentally, or only if it's stolen?
    •    How will the company replace the ring? (With a check — or will they require you to purchase a replacement through a specified jeweler?)
    •    What if it's a vintage ring or heirloom? How will the quality and size of your diamond—and that of a replacement if needed—be documented?
    •    Is the ring insured to full cost or a fraction of it?
    •    How will you need to prove the ring vanished if you make a claim?
    •    Are there any circumstances of loss or damage that aren't covered?

What it costs:
The yearly cost to insure your ring is $1 to $2 for every $100 that it would cost to replace. So, if your ring would cost the average $6,000, you can expect to pay between $60 and $120 per year to insure it—or slightly more in cities where the risk of theft is higher.

Final thoughts:

Obviously, anyone to whom the ring represents a substantial investment. If you lost $6,000, would that be a big deal? That’s what insurance is for. However, unlike other types of policies, you won’t get your ring back -- but you will be able to replace it in the event that something happens.

Sources: The Knot, Engagement Ring Insurance 101 | Brides.com, How to Insure Your Engagement Ring.
Photo credit: Flickr, ilovebutter.
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