He liked it so much he put a ring on it, but do you have insurance to cover it?

By Maryalene LaPonsie on October 2nd, 2010

Beyonce is no longer a single lady, and soon you won't be either! The day you've dreamt about is almost here. At first you may have thought that he was just bending over to pick something up, but no, it was the moment. The moment when you turned from being Miss Single Lady to the future Mrs. Right.

So now that you have that glittering rock on your finger, be smart and protect it! No one wants to be a bride without a diamond on her wedding day. Your homeowners insurance policy might replace the ring if something should happen to it, but a separate specialty jewelry policy for particularly stunning pieces might be your best option.

Home insurance coverage for jewelry

If you have renters or homeowners insurance, your ring may have been covered as soon as he slipped in on your finger. Most property insurance policies cover valuables such as jewelry, furs or collectibles automatically. However, the level of coverage can vary greatly.

According to the Insurance Information Institute (III), most policies have tight limitations on coverage levels for jewelry. For example, your policy may only cover up to $1,500 of the value of your ring if it is stolen. Carefully review your property insurance coverage to ensure that your ring will be fully covered in the following instances:

  • Theft
  • Loss
  • Damage
  • Mysterious disappearance

If your coverage is not adequate, one option may be to raise the liability on your home insurance policy. However, for maximum protection, consider adding a "floater" to your homeowners insurance. This allows you to add a schedule to your insurance policy that specifically covers your ring.

Buying a specialty jewelry policy for your ring

If you don't have homeowners or renters insurance, or even if you do and want added protection, you might consider buying a specialty jewelry policy. These plans often offer the broadest coverage available, but the International Gem Society cautions that some insurers limit how you can replace your ring if damaged or stolen.

When you compare specialty jewelry insurance policies, be sure to consider the following:

  • Will you be able to get your ring replaced at a jeweler of your choice?
  • Is there a cash option or is the policy a replacement only plan?
  • Does the company pay the actual cash value or the cash equivalent value?

JCRS, an organization that provides underwriting tools to jewelry insurers, also warns against thinking the appraisal amount is the amount you will receive in the event your ring is lost or stolen. That serves as the maximum amount you could receive, but more than likely, any pay-out will be the replacement value of the ring which could be considerable less.

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