Buying an engagement ring is usually a big financial call, which a person makes. As the price of engagement rings could range up to thousands of dollars, it is a good idea to insure it. You will own a vehicle with insurance, so why not insure your most expensive ring too? If you have renter’s or homeowner’s insurance by now, then it is likely your policy covers jewelry up to a specific value, if not the full amount, of your ring. If that is the case, then you will be able to add it as an extra provision called “rider” to your insurance policy. A rider adds more coverage in return for increasing the policy’s cost, which varies depending on the cost of both the asset and the insurance provider.
You have to consider if an insurance policy covers you entirely if your ring is damaged or lost outside of the nation. You will be more exposed to theft when you travel, so this consideration is vital, and several policies will have a rider which does not have this level of insurance coverage. In addition, ask whether your jewelry item is being covered at the entire replacement cost, and whether you can get cash settlement in lieu of a replacement piece.
Details to Collect
To successfully insure your jewelry piece, you will require many items of documentation, and some are as follows.
Appraisal Document: Most insurers will need an appraisal of the piece, if it is of significant value. If your ring has a diamond, an appraisal will include details, such as the carat weight, clarity, color and cut. The appraisal has to be done by a company with a reputation. While the piece may be appraised for a higher cost than what you paid for it, it might just mean an equally higher premium.
Grading Report: Your diamond jeweler may also give you a certification, such as the one from GIA. This will list the gemstone’s specifications too. So it will also help its appraiser determine its value, and hence it would be worth submitting with your policy. If your ring was to be lost or damaged, then this report would also be used to determine an appropriate repair or replacement for the item.
Photographs: Alongside your appraisal and diamond grading report, you may want to submit pictures of the piece to the insurer so the specifications will be met with a visual of it. This will help replace it, should you have to.