Diamond engagement and wedding ring insurance options

Getting engaged can be one of the most memorable moments in a couple's life. However, it can be devastating if a burglar breaks into your home and steals your engagement ring.

The good news is that with a little planning ahead, your home or tenant insurance can help cover the cost of an engagement ring or stolen wedding ring, including a diamond.

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You may be able to protect an engagement ring by adding personal property coverage to your home or tenant insurance.

The person who owns the ring must have insurance coverage on their behalf.

HOW TO OBTAIN AN ENGAGEMENT RING

When considering insurance for an engagement or wedding ring, one of the main questions may be: who should purchase the insurance, who bought the ring, or the recipient? The answer lies in current ownership: if the couple don't live together, the person holding the ring straight, whether on the finger or at home, is the one who should be backing it up.

Let's say John bought an engagement ring for Melissa, but he hasn't given it to her yet. At this point, the ring is still John's personal property. In this case, John should make sure that the ring is covered by his home, condo, or tenant insurance. Once John offers and Melissa accepts the ring, Melissa owns the ring. It is now the personal property of Melissa. Melissa must, therefore, purchase coverage for her ring as part of her owner, condo, or tenant policy.

HOW ARE JEWELRY COVERED? ARE THERE LIMITS?

Standard home insurance typically covers personal property for 50 to 70 percent of the amount insured you have on the structure of your home, according to the Insurance Information Institute (III). For example, a home with $100,000 insurance typically has coverage between $50,000 and $70,000 for personal items like clothing, computers, exercise equipment, and, yes, items like jewelry.

However, some categories of personal property have a maximum dollar limit that your insurance company can give in the event of a covered loss, such as B. Theft pays. Jewelry and other valuables are insured, but dollar limits are generally lower for theft, typically $1,000 to $2,000 per piece of jewelry, according to III.

If you own valuable jewelry like an engagement ring, you can purchase a “float” or “approval,” essentially an addition, to your existing landlord or tenant policy. This additional protection, known as planned personal property coverage, can help you reimburse the estimated value of the ring in the event of theft.

So if you are planning a compromise, it is a good idea to speak with your insurance agent about your current limits of personal property coverage and the options you have to protect your investment.