Engagement Ring Insurance 101

MEET THE EXPERT

Vicki Kyriakopoulos is the national account manager for Centrestone Jewellery Insurance, a company that specialises in providing insurance to jewellery wearers across Australia. She knows her way around specialised jewellery insurance better than anyone else.

We’ve compiled a comprehensive guide to engagement ring insurance and asked Vicki to weigh in on what it takes to make sure you’ll be able to enjoy your ring for years to come? no matter what life throws at your left hand. Here’s everything you need to know about getting your wedding rings insured.

Tips for Insuring Your Engagement Ring

Your soon-to-be fiancé (or fiancée) can insure the ring as soon as it?s purchased and in their possession? much like you would insure a car prior to driving it off the lot. You might not initially be thinking of anything happening to your precious and sentimental token, but the sooner it?s insured, the sooner you?ll be protected. Once purchased, you or your partner can begin to shop for ring insurance providers. Kyriakopoulos notes that the timeline can vary depending on the individual case. Coverage can be provided right away (after the application, appraisal, and sales receipts are submitted) or may take an estimated two to four business days is subject to underwriting review.

When it comes to insuring your engagement ring (or other valuable jewellery pieces), you have two options. If you have home and contents insurance or renter?s insurance, you can purchase an extension that covers your engagement ring specifically. But, there is something to keep in mind. A jewellery claim filed against your home and contents insurance policy could affect your entire policy, notes Kyriakopoulos. ?So, if your engagement ring was ever stolen or lost, your premium could go up or your eligibility for your entire homeowner’s policy could be affected at renewal.? If you don’t have homeowner’s or renter’s insurance or home insurance you can take out a policy through an independent company that specializes in jewelry insurance like Centrestone Jewellery Insurance. ?We encourage you to trust your home to your homeowner’s or renter?s insurance specialists and your jewellery to the jewellery insurance specialists,?says Kyriakopoulos. Independent companies like these are also worth a look at if your wedding ring insurance provider doesn?t offer the specific coverage you require. ?Most home and contents insurance policies do cover jewellery to some extent, but, in many cases, coverage is limited by situations covered, requirements to use jewellery replacement companies and coverage value limits,? explains Kyriakopoulos. Be sure to have all of the facts and information when evaluating insurance options, even if you?re just choosing to add a rider to the current policy. ?Call your home and contents insurance or renter?s insurance and ask for the details of your jewellery coverage? never just assume you?re covered.?

The Ultimate Engagement Ring Guide

Get an Appraisal You can’t protect the value of your ring if you don?t know its worth and that’s where getting what’s called an engagement ring valuation comes in. An appraisal will account for all the key elements of value including carat weight, cut, color, clarity, and quantity of diamonds; types of metal and weight; shape and carat weight of other stones; and any distinctive markings, model numbers, or stamps. Current retail prices in the regional market, the origin of the materials used, and the craftsmanship of the piece are also taken into account. Most insurance companies will require an appraisal for higher-value pieces (for example, rings worth $5,000 or more) while an invoice or receipt is sufficient for less expensive items.

Centrestone Jewellery Insurance Tip:

The easiest way to secure a proper appraisal is to do so at the same time you purchase your piece,says Vicki. ?It assures that current market prices are reflected and that the distinct characteristics are accounted for.?

Get a Diamond Certificate or Grading Report

If your center stone is around half a carat or larger, your jeweler will often provide a diamond certificate or grading report from an independent gemological laboratory like the Gemological Institute of America (GIA), the organization that founded the ?4Cs?used to evaluate diamonds: color, cut, clarity, and carat weight. The report is available in digital or paper form. This assessment of quality? while not an appraisal? lists all of the measurements your appraiser will need to make the most accurate determination of value. (This detailed information can also help track down your specific diamond if it?s ever stolen).

Make Sure Your Appraiser Has the Right Credentials

Find a reputable appraiser with sparkling reviews, preferably one who holds a graduate degree in gemology and is a member of a national appraisal society. (The GIA recognises these associations.) And make sure that the appraisal value is accurate and not inflated. Sure, you might be thrilled when the sparkler that costs your partner $10,000 appraises for double, but you could lose money in the long run. You?ll pay a higher monthly premium for a ring that appraises at $20,000.

Remember to Reappraise

The good news is your engagement ring was a smart investment. As its value has likely increased since it was purchased, it?s important to have your ring reappraised annually for insurance purposes. Most reputable appraisers will retain a copy of your original appraisal and can work from that instead of starting from scratch (this also helps to cut costs). Just to be sure, bring along a copy of your original appraisal if they don?t keep records for that long.

Reevaluate Your Overall Insurance Needs

There might be more to consider than just how to insure engagement rings. As soon-to-be newlyweds, you may consider ramping up your insurance coverage to account for expensive or hard-to-replace wedding gifts