How to Insure Your Engagement Ring or Diamond | A Guide

As you bask in the exciting glow of your engagement, now is the time to get your engagement ring insured. This time in your life is for celebration and romance and it is better to enjoy it with complete peace of mind that should the worst happen, your precious ring is protected.

Theft, loss and damage are natural risk factors when it comes to fine jewelry but the heartbreak that these incidents can cause is hugely lessened with the proper insurance.

Using our decades of jewelry knowledge, we have completed this guide to offer thorough explanations and tips when it comes to jewelry insurance.

There are several options when it comes to insuring your engagement ring. The first is through your homeowner’s insurance. Although this option is better than no coverage at all, it does bring with it certain limitations and issues. You will need to contact your home insurance provider to find out exactly what can be covered under your policy. Having home insurance does not automatically cover your jewelry, and it is usually necessary to pay for an additional add on service, or ‘rider’. This will provide higher coverage limits and protections from more potential risks. However, another issue which can arise from using your homeowner’s insurance is a lack of industry understanding. In some worst-case scenarios, insurance companies have been known to pay out in the form of vouchers for chain jewelers. This would be a devastating result as the quality of fine jewelry and high-performance diamonds simply cannot be replaced in a low-quality chain jewelers.

The best option for your engagement ring is to have it covered by a specialist jewelry insurance company; these policies are specifically designed for fine jewelry, loose diamonds and engagement rings. Companies like Jewelers Mutual have jewelry experts on-hand who can accurately assess the true value of your jewelry. If you make a claim and the lost/damaged/stolen diamond is an unusual cut or color, Jewelers Mutual will insist that a replacement is found that is as close to the original as possible. Using their expert knowledge, they will help make the process as smooth as possible, resulting in a quicker, more accurate, and more satisfactory outcome. Another advantage to using specialized jewelry insurance coverage is that should you need to make a claim, it will not cause premium increases to any other your insurance coverage you have.

This chart on the Jewelers Mutual website shows the advantages of using their cover instead of household insurance. This scenario is not exclusive to Jewelers Mutual; there are many jewelry insurance companies who will offer similar benefits, however it is important to opt for well recognized and respected businesses. It is important that the company you choose has strong familiarity with the Gemological Institute of America (GIA) or the American Gem Society (AGS). Jewelers Mutual employ gemmologists with GIA and AGS training who are able to understand intricacies of diamond color, cut and carat weight. They offer a guarantee to either repair or replace your engagement ring to an indistinguishable quality; this can only be achieved when experts in the industry who truly understand diamond jewelry are working on your claim. Ethics AND knowledge must be at the heart of the company that you task with such an important role.

You can read more about Jewelers Mutual here: the ‘must have’ insurance for our US and Canadian customers. Customers in the UK can contact LMG jewelry; with great customer service and a team of gemologists and jewelry experts they can offer our British customers an exceptional level of support through the insurance process.

Put quite simply, no, jewelry insurance is a small annual cost and we find that it is often a fraction of what our customers are expecting to pay. Various factors are taken into consideration (theft rates in your area, for example) and a quote is given. Your plan will usually cost around 1-2% of the value of your jewelry. For example, for a $5,000 engagement ring, your insurance costs could be somewhere around $50 annually. Policies that do not have deductibles will have higher premiums.

In our experience, customers find this to be an affordable and wholly essential investment that protects their jewelry against any potential risks and allows them to wear their engagement rings safe in the knowledge that they are covered. Diamond jewelry is intended to be worn and enjoyed, and insurance brings with it the freedom to do so.

Be sure to update your policy if you move to a new house and check to see if this will affect your premiums.

A service plan like the free One Year Service Plan is a warranty that protects against some of the same issues that are covered by insurance including defects, damage from normal wear, and stone replacement in certain circumstances. However it does not cover loss due to theft or mysterious disappearance. Whiteflash also offers a low cost extended warranty backed by JM Care Plan Inc. The Three Year Ultimate Care Plan is a great option for peace of mind in terms of minimizing the cost of owning fine jewelry, but again it does not cover theft or loss of the item.

There are a few key questions that you can ask the agent dealing with your inquiry. This knowledge will allow you to make the most suitable choice for your insurance and allow you to kick start the process.

• Moving to a new house with your partner is likely to have an impact on your coverage. Get the details from your agent before you start the process to avoid any unexpected price hikes in the future.
• Find out what services will go towards your deductible and ask for details on the various plans available.
• Ask for clarity on your policy’s coverage limit.
• Establish where you can have your ring repaired/replaced under the policy and be sure that a suitable replacement can be sourced.
• Find out instances in which your ring would not be covered by your insurance. Theft, loss and damage are essential but cannot be assumed from your insurer. Get all the facts before making your choice.
• There is no such thing as a silly question. If you have any questions or concerns, ask your agent for advice.

Once you have asked the basic questions, it is time to consider the more detailed aspects of your policy. These are some simple tips that you can follow to get the most out of your insurance.

• All of our diamonds are issued with AGS or GIA certificates. These are of vital importance when it comes to the value of the jewelry and therefore essential for your insurance. These certification bodies have set the industry standard for grading diamonds, and our in-house A CUT ABOVE® diamonds exceed these standards. Many of our diamonds will also arrive with additional performance reports pertaining to your diamond. You can find out more about diamond quality and certification in our Education Center.
• Keep all of your original receipts somewhere safe. This will allow you to provide proof of how much you paid for your engagement ring and also creates a paper trail for the original source of the ring. (This rule applies to all paperwork you received with your purchase). Whiteflash keeps your diamond and jewelry details available for you online indefinitely should you ever need them.
• An independent appraisal can offer additional security for rings over $5,000. This appraisal should be completed by a certified gemologist to ensure it is as accurate as possible. An inflated appraisal is of no value and will cost more in premiums. Be thorough in your search but remember that an appraisal is not a substitute for a GIA or AGS certificate, instead it is an additional measure that is taken to get the most accurate policy rate, and to insure that a replacement is of equivalent quality.
• Make sure you keep your appraisals as current as possible; fluctuations will inevitably occur over the years. An engagement ring has the potential to increase significantly in value over time, and up to date appraisals will ensure that you get the most from your insurance policy.

Jewelry insurance is an investment, and like all good investments it is about comparing the small costs against the possibility of large loss. Decide how important that piece of jewelry is to you, and how you would feel if it was lost or stolen. Ask yourself if you could afford to buy it again and whether you would have the knowledge to source something identical. Most of our customers make the decision to insure all of their fine jewelry to avoid the heartbreak of these possibilities and also to give them full confidence to wear and enjoy their jewelry.

Jewelry is often deeply personal and frequently very costly. This is particularly true of diamond engagement rings, but also applies to any kind of fine jewelry to which you have a personal attachment. A personal jewelry policy gives great assurance that your treasure will be protected to the greatest extent possible.

If you would like to read more about Jewelers Mutual and get a free quote you can do so here.