An engagement ring is one of the most expensive jewelry purchases most individuals will make in their lifetime. According to The Knot 2017 Real Weddings Study, the average cost of an engagement ring now sits at $5,764. While this figure is the average across the country, the study also looked at the price that a typical “high spender” would pay for an engagement ring. For high budget couples, the cost of the engagement ring soared to five figures—$13,933.
While budgets can vary wildly from couple to couple, there is one takeaway from these figures: an engagement ring is an investment. And like all investments, it needs to be protected against theft, damage and loss. For this reason, many couples invest in ring insurance or a supplemental policy that protects their jewelry.
But do you need ring insurance? The answer depends on many factors: the ring’s cost, the couple’s monthly budget bottom line and perhaps even sentimental value of the piece (some settings are family heirlooms).
The Price of the Investment
Every couple has a budget bottom line for major purchases. Some couples opt for an extravagant and high-budget ring, but for others, the symbol means more than the price tag. Engagement rings can cost millions or even under $100.
Before you invest in an insurance policy for your ring, consider the cost of the initial investment. You may spend more to insure the ring over time than you spent on the actual ring. In that case, the policy isn’t such a great value. But if the engagement ring cost thousands of dollars, then looking for a policy to cover theft, loss or damage is a wise choice.
Monthly Budget
Most jewelry insurance or umbrella policies that cover jewelry are paid yearly, but some policies might offer monthly payments for your premium. If the monthly or yearly payments are beyond what your budget allows, investing in a policy isn’t a feasible option. However, if you invested thousands for the ring and can give up another monthly cost (like cable or other luxuries), then you might want to consider purchasing a policy to protect your ring. You can add coverage riders—like jewelry insurance—to an existing homeowner’s policy, or get a policy just for your ring.
Jeweler Warranties and Coverage
Many jewelers—including Brilliance!—offer lifetime warranties that cover damage or other issues that are the result of the manufacturing process. But these warranties often will not or cannot cover damage from daily wear, loss or theft. For this reason, many jewelers will recommend that buyers purchase coverage to protect their ring investment.
Brilliance partners with Lavalier, an insurance provider that specializes in jewelry coverage. Policies through Lavalier cover against theft, loss, damage and even provide flexible coverage. The price for a policy is typically one to two percent of the ring’s value; so insuring a $5,000 ring might cost from $60 to $114. Research your home or renter’s insurance, and, if your cost is too high to add a supplemental rider to cover your ring, consider purchasing coverage through other insurance providers like Lavalier.
How Much Coverage do You Need?
Many couples wonder how much coverage they need to adequately cover their investment. A trusted appraiser can give you an accurate figure as to what your ring is worth, and this figure helps you find the coverage you need. However, your ring’s value isn’t stagnant; a ring can decrease or increase in value over time. Every year, the price of diamonds, precious metals and gems rise or fall according to the economic markets. Damage and everyday wear and tear also may affect the worth of your ring. Revisit your policy year to year to ensure that your ring’s coverage is sufficient.
So do you need ring insurance for your engagement ring? If you’ve invested thousands of dollars on the ring and you can afford the cost of the insurance premium, then, yes, you should purchase a policy. Inquire about supplemental coverage riders through your home or renter’s policy or shop around to find a jewelry policy that fits your needs. The best advice, though, is to insure that ring if you know you could never afford to replace it!
