Engagement ring insurance – is it worth having?

The pandemic did little to stop couples from splurging on engagement rings, a recent survey conducted by wedding planning website The Knot has found.

The company polled more than 5,000 Americans aged 18 to 54 who got engaged between January and November 2021 and found that the average engagement ring spend during the year was $6,000 – a slight jump from $5,900 in 2019, before the COVID-19 disrupted most people’s wedding plans.

Respondents who purchased natural white diamond engagement rings said it cost them an average of $6,800 while those who bought rings set with other gemstones – whether lab-grown or colored – paid about $2,500.

A person’s age also had an effect on buying behavior with millennials, or those aged 25 to 34, spending around $6,700 while Gen Zers, or those between 18 to 24, allocating an average of $4,100 for the ring purchase.

Additionally, about a third, or 30%, of respondents admitted to spending more than planned, up 9% from 2019 numbers. The study indicates how much money people are willing to spend on this piece of jewelry, highlighting the need for proper protection.  

Read more: Is jewelry insurance worth having?

How does engagement ring insurance work?

Bridal magazine Brides defines engagement ring insurance as a “contractual means of risk management to protect [owners] from financial repercussions in the event of physical loss, theft, or damage.” The publication adds that coverage can be extended to other jewelry items, and can come in the form of repair, replacement, or cost reimbursement.

There are two ways to access this kind of protection. First, it can be included in a standard homeowners’ or renters’ policy. Coverage, however, “often offers just a fraction of an item’s worth, ” experts say. To cover the full value of expensive jewelry, policyholders may need to purchase a rider or extension. The simplest step, according to the financial information website Investopedia, would be to add a rider itemizing each jewelry piece to the current insurance policy. But this option comes with drawbacks.

“A jewelry claim filed against your homeowners’ policy could affect your entire policy,” Tyler Krowiorz, director of enterprise communications at specialist insurer Jewelers Mutual, told Brides magazine. “So, if your engagement ring was ever stolen or lost, your premium could go up or your eligibility for your entire homeowners’ policy could be affected at renewal.”

Read more: New collectors of high-priced jewelry targeted by insurance products

Krowiorz added that the best choice for jewelry owners would still be purchasing standalone insurance from specialist providers, which can provide tailored coverage.

“Most homeowners’ insurance policies do cover jewelry to some extent, but, in many cases, coverage is limited by situations covered, requirements to use jewelry, replacement companies, and coverage value limits,” Krowiorz explained. “We encourage you to trust your home to your homeowners’ or renters’ insurance specialists and your jewelry to the jewelry insurance specialists.”

How much does engagement ring insurance cost?

Just like other types of insurance, premium prices for an engagement ring policy depend on a range of factors, including the value of the ring, the metal used, stone set, and where the owner lives as this can be an indicator of how likely the jewelry may be stolen.

Experts estimate the average annual cost to be between the 1% and 3% range, meaning premiums for a $6,000 ring can go from $60 to $180 per year. 

What should you consider when taking out engagement ring insurance?

Before taking out coverage, experts advise owners to find out the true value of their jewelry by getting an appraisal. According to Brides magazine, an appraisal factors in the all the key elements of value, including:

• Carat weight, cut, color, clarity, and quantity of diamonds
• Types and weight of metal
• Shape and carat weight of other stones
• Any distinctive markings, model numbers, or stamps
• Current retail prices in the regional market
• Origin of the materials used
• Craftsmanship

When purchasing engagement ring insurance, an appraisal is required for higher-value pieces, typically those worth $5,000 or more, while an invoice or receipt may be enough for less expensive jewelry.

Read more: Protecting prized possessions with valuable articles insurance

In an interview with Brides magazine, Krowiorz listed several essential questions that jewelry owners need to ask insurance providers when searching for coverage that fits their needs. These are:

• Can you choose who repairs your ring?
• If you're insured for replacement instead of a cash payout, where can you purchase a new ring?
• What happens if a suitable replacement cannot be found?
• How will you need to prove the ring vanished if you make a claim?
• Are there any circumstances that aren't covered?
• Will you continue to be insured when out of the country?
• Are you covered for damage or just loss and theft?
• Will the policy adjust according to inflation?
• What types of repairs contribute to the deductible?

Which insurers offer engagement ring insurance?

To find out which insurers offer the best coverage for engagement rings, Brides magazine reviewed more than a dozen providers, comparing each company’s overall policies, features, premium costs, and whether standalone policies were available. The publication also factored in financial stability and reputation. These are the ones that came out on top.

The table below details the different coverage features, which are up to date as of June 2022, of each insurer’s available policy. Companies are listed alphabetically.