Is It Possible to Have a Separate Insurance on an Engagement Ring?

an engagement ring setThose who want to insure their engagement ring should expect to pay between 1% and 2% of its value, which will be the payable premium per year if they plan to add it to their homeowner’s insurance.

Insurance Options

A low-end engagement ring price of $500 for a quarter carat means that you will likely pay a premium of up to $10 per year. If you live in Utah, you can include the cost of jewelry repair services like AAA Jewelers in your policy. This can be in the form of an endorsement or floater.

A separate insurance policy for jewelry serves as another option for people who wish to keep their home insurance as a whole. Take note that precious items covered by a floater will be counted as a claim against your home insurance. An additional policy specific to jewelry also offers broader coverage, except for the normal wear-and-tear and damages due to flooding and earthquakes.

Cost of Engagement Rings

Separate policies can be a better choice compared to a floater despite certain limitations since most home insurers only guarantee coverage between 50% and 70% of an item’s value. This means that if you’re buying high-end engagement rings worth $3,500, you will only receive half of its value after your insurer approves a claim.

Those who plan to maximize the value of their jewelry should buy after certain holidays, notably Valentine’s Day and Christmas. Most jewelers offer discounts after these days, so the money you save can be spent on an extra insurance policy.

A jewelry insurance policy should include an option that covers your precious items for repair or maintenance costs. It’s ideal to get a separate package from your home insurance, so the latter won’t be affected when you file a claim for missing or damaged jewelry.