How to Properly Insure an Engagement Ring

When it comes to insuring your engagement ring there is one thing you must have before you approach any insurance company. You need to have an appraisal. Make sure the appraisal is from an independent jewelry appraiser and that it is an actual appraisal and not a gemological laboratory report (gem lab report).

Gem Lab Report vs Appraisal

A gem lab report is a report describing the gemstone itself. It describes the dimensions, weight, clarity, color, etc. The gem lab report never changes unless the stone itself is altered. It does not take into consideration the market value of the stone nor does it take into account the stone's setting and its value as wearable jewelry. Therefore a gem lab report will not adequately provide an accurate value of your engagement ring.

An appraisal, on the other hand, places a value on both the gem and the setting. It provides a dollar value that can be used for insurance purposes. After having an appraised value, you'll be able to start making choices.

Endorsement or Separate Policy

First you should review your homeowners or renters insurance policy. Check to see if it provides enough automatic jewelry coverage to adequately insure your engagement ring. Some companies offer anywhere from $500 to $1,000 automatic jewelry coverage as part of their standard policy. If the automatic coverage limit is not adequate, look to add a jewelry endorsement.

If your engagement ring is of a considerable value, you should purchase a separate insurance policy to cover your ring. Insurance companies such as Jewelers Mutual will provide such coverage.

Once you've secured adequate coverage for the engagement ring, review the policy's deductible. Some insurance companies, depending on your area, may ensure your ring with zero deductible.

Here are a few helpful tips when insuring your ring:

1. Have pictures of your engagement ring. Photos come in handy in the event your ring is lost, damaged or stolen. It not only helps the insurance company when settling a claim, it helps the jeweler when repairing or replacing your ring.
2. Appraise your ring or any valuable jewelry regularly. As market conditions change the value of your engagement ring may increase or decrease over time. Discuss the appraisal frequency with your insurance agent .
3. Become familiar with Jewelry Insurance Standards Organization (JISO). JISO is a non-profit organization that provides information to those involved in the jewelry insurance process, from the consumer to the appraiser to the insurance company. They provide information, warnings and tips that will prove to be helpful when it comes to insuring your engagement ring.

Once you've adequately insured your ring, be sure to take proper care of it to ensure it will continue to sparkle up to and beyond your wedding day.