Find the right policy to safeguard your investment
Few things are as romantic as a marriage proposal. But, after saying “yes,” it’s time to deal with the practical aspects of your engagement. While it may not evoke the same romantic feelings, protecting your engagement ring should be a top priority. So, if a ring has a warranty, do I really need insurance?
Your engagement ring may be one of the biggest single investments you ever make. The average couple spends $5,500 on their ring, according to The Knot’s 2020 Jewelry and Engagement Study.1
Sadly, though, your ring may be vulnerable to damage, theft, or loss. In fact, the Insurance Information Institute says jewelry loss is among the most common homeowners insurance content claims.2 It can be tempting to save money by skipping insurance, but you could be putting your new investment at risk.
When considering ring insurance, don’t sign up for the first policy you find. We compared a dozen options to craft our list of the best engagement ring insurance based on coverage, pricing, customer service, and more. What follows are our findings, so you can find the coverage that’s right for you.
The 5 Best Engagement Ring Insurance Companies of 2021
Best Overall: Jewelers Mutual
Jewelers Mutual has been protecting jewelry since 1913 and has earned an A+ ranking from AM Best for 33 years.3 The company is accredited with the Better Business Bureau (BBB) and has an A+ rating.4 Jewelers Mutual has received a slew of endorsements, including plugs from authorities like the American Gem Society and Jewelers of America. Jewelers Mutual offers both personal and business jewelry insurance policies.
Unlike some other providers, Jewelers Mutual doesn’t use a simple “price per $100” formula to calculate customer premiums. Instead, the company looks at your zip code and the value of your ring. In addition, there are four deductible options, ranging from $0 to $500, which impact how much you will pay per year. The company offers a loss prevention discount if you have an eligible home alarm system installed.
Jewelers Mutual will repair or replace up to the full value of your ring, so you should expect to provide a current appraisal. The claims process may take up to 30 days and includes four steps:
- Start the claim with a phone call.
- Choose a jeweler to repair or replace your ring.
- Pay your deductible.
- Insure your replacement jewelry (if your old ring was replaced).
We chose Jewelers Mutual as our best overall because it is considered the gold standard in ring insurance. The company has the best reputation of any provider we could find, and its long history, BBB accreditation, A+ rating, and industry endorsements make it the most trustworthy stand-alone option. The company also partners with respected property and casualty insurers like Geico. Jewelers Mutual’s reputation and competitive premiums make it an easy choice for our top spot.
Best for High-Value Rings: Lavalier
Lavalier is a well-known jewelry insurance provider that has partnered with Berkley National Insurance Company to provide underwriting. Berkley National Insurance Company has an A+ rating with AM Best.5 Lavalier is not currently accredited by the Better Business Bureau but has earned an A+ rating.6
One benefit of Lavalier is that the company allows you to get a quick quote online. The website application also advertises potential discounts for those who have home safes or alarm systems.
The annual premiums depend on your zip code and the appraised value of your engagement ring. There are many deductible options, ranging from $0 to $25,000.
If you need to file a claim, you need to submit a report, and a representative will assist you through the repair or replacement process.
We chose Lavalier as the best for high-value rings because the company offers an “all-risk” policy, which means complete coverage—except for a few named exclusions. You will have protection from any type of loss, damage, theft, or “mysterious disappearance” from anywhere in the world. You can cover a ring worth up to $50,000, and Lavalier may offer even more with underwriter approval.
Best Claims Process: JIBNA
Jewelry Insurance Brokerage of North America, or JIBNA, is a private underwriting manager that has been in business since 2007. The company was founded by a jewelry industry expert with over 45 years of insurance expertise. There are no listings for JIBNA with the Better Business Bureau and the company doesn’t sell policies directly, but you can inquire online to find a broker in your area.
JIBNA uses the following formula to determine annual insurance premiums:
Value of engagement ring x rate (based on location) / 100 = annual premium
Customers who purchase a policy from JIBNA have five deductible options that range from $0 to $1,000. For example, customers in the Nashville area can expect to pay annual premiums of $78 to $83 for a $5,900 ring, depending on their choice of deductible.
JIBNA offers a 5% discount if you have a home safe over 150 pounds. An additional discount of 5% may be available if you have an alarm system, and we confirmed with a representative that these discounts can be combined. There may also be a premium discount for appraisals that meet the Jewelry Insurance Standards Organization (JISO).
JIBNA’s underwriting process looks at your residence, occupation, other scheduled jewelry coverage, your criminal background, security information, appraisal, sales receipts, and gem reports.
Claims submitted to JIBNA can be filed by phone or by submitting a form through JIBNA’s website. The next step is speaking with an adjuster to repair, replace, or receive a cash settlement, according to a representative. Luckily, JIBNA collects the necessary paperwork on the front end, which allows for a hassle-free claim later.
JIBNA’s claims process stands out because of the company’s proactive approach. The company collects your appraisals, lab reports, and other documents when you sign up for a policy. This makes it easier for a quick, pain-free claim later. Also, because JIBNA is a stand-alone policy, it won’t negatively impact your future homeowners insurance premiums. All of these reasons are why we chose it as our best option for easy claims.
Best for Market Protection: Chubb Insurance
Chubb is one of the world’s largest property and casualty insurance providers. The company has been around since 1792 and has earned an A++ rating with AM Best.7 Chubb has branches throughout the country and offers a couple of engagement ring insurance options:
- Stand-alone engagement ring coverage
- Valuable articles coverage through a homeowners insurance policy
According to a representative, you must call a local broker for a quote on premiums.
The real stand-out feature for engagement ring insurance from Chubb, though, is that there are no deductibles. The website also says Chubb has “liberal appraisal requirements” and doesn’t require an appraisal for engagement rings below $100,000. Chubb only asks for a detailed description and estimated value.
A representative confirmed there may be discounts for a safe or alarm, but you will need to speak to a local broker about the specifics. You’ll also need to work through a local broker if you need to file a claim later.
In some cases, Chubb will pay 150% of your engagement ring’s value to account for market increases. Otherwise, you can expect to receive 100% of the agreed value in cash.
We chose Chubb because, although there isn’t an easy way to get a quote online, the company’s policies offer a unique feature we didn’t see from the others—coverage up to 150% in most states. As the market changes, precious metals like gold may increase in value. This means your ring could be worth more when you make a claim. With Chubb, you can rest easier knowing you have the extra protection.
Best Value: Travelers Insurance
Travelers Insurance is a trusted property and casualty insurance company that’s been in business for over 160 years and has earned an A++ rating with AM Best.8 Travelers Insurance is accredited with the Better Business Bureau with an A+ rating.9 The company offers two add-on options to the company’s own homeowners insurance policies:
- Value Items Plus endorsement
- Personal Articles Floater (PAF)
Depending on the policy, Travelers’ homeowners insurance covers between $1,500 and $5,000 for stolen or misplaced jewelry. You can add up to $50,000 of protection with a Value Items Plus endorsement. If you have a rare or antique ring, you can add extra coverage with the Personal Articles Floater.
The annual premiums for the Value Items Plus endorsement vary by location and the value of your ring. The minimum premium is $50 per year, and you can choose a deductible ranging from $0 to $1,000. For example, your premiums may range from $50 to $60 per year for a $5,900 ring in Nashville. This assumes you have an existing Travelers’ homeowners insurance policy and monitored alarm system.
The underwriting process for Travelers is fairly simple. You’ll need to complete a brief form that includes an estimated value of the ring you want to insure. If you are already a customer, adding the Value Items Plus endorsement should be quick, according to a representative.
You can submit a claim and upload documentation through Travelers’ website. The maximum payout you may receive for jewelry is $50,000.
We believe Travelers offers the best value because, if your ring is worth less than $50,000 and you’re willing to consider bundling services, Travelers Insurance offers the lowest annual premiums on our list. The company also shines with customer service, making it easy for customers to submit or track a claim online or by phone 24/7.
What Is Engagement Ring Insurance?
Engagement ring insurance is an endorsement or standalone policy that protects your ring against damage, theft, or loss. After buying an engagement ring, you can protect your investment with jewelry insurance. You can buy a stand-alone policy or get limited coverage—often $1,500 or less—through your homeowners or renters insurance policy. You may add higher amounts of coverage through an endorsement, rider, or personal articles floater.
What Does Engagement Ring Insurance Include?
Depending on the policy, your ring insurance may include coverage for damage, loss, and theft. If you have a claim, the policy may offer to repair, replace, or pay cash for an agreed-upon value. An “all-risk” or “all perils” policy covers everything except for the exclusions that are specifically named in your policy.
Does Engagement Right Insurance Cover Lost Rings?
Some engagement ring policies cover lost or misplaced rings—including “mysterious disappearance.” However, this coverage will be detailed in your policy documents. If you’re worried about losing your ring, you may also want to consider a policy that offers worldwide coverage for when you travel.
What Does Engagement Ring Insurance Exclude?
When you purchase engagement ring insurance, you can expect to see some of the exclusions you may see in your homeowners insurance policy. These include things like a manufacturer’s defect, intentional acts, normal wear and tear, or incidents resulting from wear. You will also have to cover routine maintenance like resizing, cleanings, or appraisals on your own.
How Much Does Engagement Ring Insurance Cost?
Based on our research, you can expect to pay between $50 and $100 per year for quality ring insurance. However, prices may vary based on where you live, the value of your ring, and the deductible level you choose. Many companies have a formula to calculate premiums. Others say you should expect to pay 1% to 2% of your ring’s value per year.
Is It Worth It to Insure an Engagement Ring?
The average couple spends $5,500 on an engagement ring.1 For many people, it may be worthwhile to spend $50 to $100 per year to protect that investment—especially with so many insurers offering to repair or replace the ring with another of similar quality and value.
How We Chose Engagement Ring Insurance Providers
If a ring has a warranty, do I really need insurance? We compared a dozen insurance providers before narrowing our list down to five top picks. We considered each company’s reputation, annual premiums, underwriting guidelines, the company’s claims process, and discount opportunities to choose the best.
Original source of the article: The Balance.