Should you insure your diamond engagement ring? Is it worth it? How do you do it? What should be aware of? JewelryShopper.co explains all and more, along with insider tips and advice about insuring and appraising all of your valued jewelry.
Once you've purchased your engagement ring, the next step is to make sure it's properly insured and appraised. While it's impossible to replace the ring with which you proposed, you need to be able to minimize any backlash if the ring is stolen, lost or damaged.
Engagement Ring Appraisal
An unbiased and accurate appraisal of the ring's value is necessary for many reasons. Firstly, if it's valued at under $750 it may not be worth to pay for an independent appraisal. However, the most expensive the jewel is, the more vital it is that you have the ring independently appraised.
A certified inspector can appraise your ring. Make sure though the appraiser is not affiliated in any way with the jeweler who sold you the ring. Before you buy the ring, inform the jeweler that you intend to have the ring appraised by a certified inspector and if the value is not within a certain percentage of the price - then you can return the ring for its full value. Most jewelers will agree to this, bearing in mind the appraisal will almost always be below retail price -this is to be expected. Also, most jewelers will provide a window for this service. Don't expect to return the ring years later, claiming you just had it appraised and want your money back.
When you take your diamond to an independent appraiser, do not give him any background on the stone. Don't let him know where you are purchasing it, or what you paid for it. The point of getting an appraisal is to find out its true worth based on the independent inspection of the stone, setting, and other characteristics of the ring. You don't want to do or say anything that might sway the appraisal in a certain direction.
The appraisal will also help for purposes, especially if you've purchased and antique or vintage ring, bought the ring at auction, or inherited the ring.
Engagement Ring Insurance Policies
The scouts told you to always be prepared. Your grandmother told you to save for a rainy day. Your mother told you to always wear clean underwear in case you were run over (though if you do get run over I'm sure the state of your underwear will be one of the last things on your mind). Anyway, no matter what the saying - it's all the same premise - prepare for the worst and expect the best. Insurance is all about preparing for the worse. If your ring gets stolen, lost or damaged you need to know that although the ring itself can't be replaced you can at least have the security of knowing you can replace it smoothly and seemlessly. There are several types of policies to choose from and they can vary depending upon the state you live in and the insurance company you use.
Replacement Policy
A replacement policy guarantees a payment that will enable you to buy a similar ring with comparable stone quality, design, setting, and metal should your ring become lost, stolen, or irreparably damaged. This policy would apply to current market values - meaning that even if the ring is more expensive now than when you originally purchased it, the entire replacement cost will be covered.
Actual Cash Value Policy
This policy will replace the ring at its current value minus any depreciation that might have occurred. These policies are less expensive to maintain than other policies and they are the most common choices.
Valued At Policy
This is the most comprehensive coverage on the market, though it's not particularly commonplace. With a valued at policy, you will receive the actual insurance amount, even if you choose to value the ring at higher than its appraised value. This may include your sentimental value or a ?time and trouble? consideration if the ring were custom-made.
Engagement Ring Appraisals and Insurance Together
While some appraisal agents also offer insurance policies, it is best to turn to an independent insurer for the same reason that you would prefer an appraiser unaffiliated with the original jeweler. This way you can be certain that there is no hidden bias designed to drive your costs higher, and you guarantee the best coverage for your ring.
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