Getting betrothed in over a $5000 engagement ring sends a feeling of being extra-special, valued, and loved. No doubt love is in the air, as the wedding bells “ding-a-ling” louder than ever. As we know, an accident may happen when we least expect it. It could be a home burglary, or you could forget to remove it during swimming, and you end up losing it, or any other incident. Even as you plan for a wedding ring, first, it’s prudent to preserve and protect one of your precious jewelry collections like an engagement ring.
Get an appraisal
If you got your engagement ring that was an heirloom, it must have some sentimental value worth reserving. But do you know its value? So, whether it’s an inheritance or a brand-new jewelry ring you got, they need an appraisal that details the product’s value.
It is crucial to find a reputable jeweler who will probably have a gemologist or a jeweler appraiser. He will first evaluate your engagement ring, accounting for the essential elements that include 4Cs if it is a diamond; cut, clarity, color, and carat. The jeweler will also assess the metal’s shape, weight, and any other distinctive markings. He will then give you a document that he has recorded these details, including the current market of jewelry’s value. This same document you will need to take to an insurance company covering your precious investment.
Your appraiser should have;
- Excellent reviews
- Certified from a recognized GIA association such as the National Appraisal Society
- Ensure the value of the appraisal is accurate and not in any way inflated.
Questions you must ask your potential insurance provider
When you have finally found the right insurance provider for your engagement ring. Here are the questions he should be able to answer you;
- What precisely do they cover? Do they include loss, damage, and theft? What do they exclude in their policy?
- How do they handle their claims? Do they send you a cheque, or you may need to purchase a replacement first and get the reimbursement later?
- If there’s a problem finding a replacement for the insured ring, what happens next?
- Do they have a list of circumstances that they don’t cover?
- Do they recommend a particular place to buy the jewelry if the insurance is for replacement?
- Can you select your jeweler repair if damage occurs?
- Does the insurance cover the ring within your country, or it extends while you are abroad?
- Do they modify their policy along with inflation?
- What kind of proof do they require after the ring disappears?
Asking these questions will help you understand clearly what the policy entails. It will support you in determining the right provider to cover your valuable ring.
Cost of insurance
Before we look at the amount it will cost you for jewelry insurance, we shall first understand what this means:
Engagement ring insurance is a risk management contract that you sign with an insurance company to incorporate your jewelry in the case of a loss, theft, or damage. The rule of thumb is, jewelry insurance should cost you 1 to 2 percent value of your ring. However, it can also go beyond this range depending on the risk factor of an individual. If the jewelry price is $ 5000, then that amounts to $ 50 per year cover.
NB: Ensure your jewelry in the current market value because valuable metals like gold increase its value over time.
Can you insure other products?
Some insurance companies do not provide a stand-alone jewelry cover. They require underlying insurance called a rider or a floater that targets smaller mobile products. When a traditional coverage ends, this typically protects the insured item against theft, loss, or damage.
You might also want to include other valuables in your jewelry collection in your existing policy. And since you are going to be getting another valuable ring soon, you might decide to ramp up your insurance cover for the wedding ring as well. However, it’s essential to know that your premiums will increase with any added piece of product. Some renowned providers require additional handling for your valuables.
You might even get some discount if you are insuring multiple policies. Nevertheless, if you don’t have homeowners or renter’s insurance policy, you can go for a stand-alone cover from insurance companies specializing in jewelry insurance.
Insurance gives you peace of mind
No matter how cautious you are, sometimes, misfortune can be inevitable, and it is devastating to lose such valuable jewelry. If you remember someone who has dropped a sentimental jewelry collection, you would know how traumatizing that is, and it would save you the headache of going through that trauma. Getting a cover for your sentimental piece can soften the blow of losing it.
Get an updated appraisal for your jewelry.
Most insurance companies will need an updated jewelry appraisal every two years or as soon as you upgrade your ring. It ensures that you get appropriately insured to the full value of your valuable treasure.
In Conclusion, it is crucial to have your appraisal document with images safe, where they will be accessible if required. That will make the insurance compensation process easier, among other things. Always store your valuable jewelry collections securely when you are not wearing them. And avoid traveling with an irreplaceable jewelry piece.