When you find the perfect engagement ring, it’s a good idea to make sure that it’s protected against things like theft, loss, accidental damage, mysterious disappearance, and natural disasters. If you find yourself in the common position of wondering how to go about purchasing engagement ring insurance, we’ve got you covered! (No pun intended.)
In this guide, we’ll answer some of the most common engagement ring insurance questions we receive from shoppers just like you. We’ll also break down the differences between the two types of engagement ring insurance policies, standalone engagement ring insurance vs homeowners/renters Insurance coverage.
Here’s What’s Covered
The first decision you’ll have to make when purchasing insurance for your engagement ring is deciding between buying a standalone policy through a specialty insurer like Zillion or adding a special rider to your existing Homeowners Insurance policy.
In the end, we believe that standalone insurance jewelry insurance offers the most comprehensive coverage at the lowest rates for most people.
The first option available to you is purchasing a specialty, standalone insurance policy for your jewelry with Zillion. Our specialized plans are often more affordable and, frankly, less hassle for you.
At Zillion, we offer comprehensive standalone engagement ring insurance policies that come with a wealth of benefits like:
Coverage for your jewelry against loss, damage, theft, disappearance, and natural disasters.
Many people assume that once they buy a piece of jewelry, it’s automatically covered under their homeowners/renters insurance policy—and while that may be true, there are exceptions. Most homeowners/renters insurance policies only cover jewelry up to a point (most policies only cover about $1,500 for jewelry), and only under certain circumstances.
An insurance rider to homeowners or renters coverage is like a mini policy for items that aren’t fully covered in the standard policy. Purchasing a jewelry rider is one option to ensure high valued items, like engagement rings and wedding rings, for example, are fully covered should the worst occur. At face value adding a rider to your existing policy may seem like an easy way to bolster coverage and minimize risk. But jewelry riders won’t set you free of some limitations like:
The average American spends $6,000 on an engagement ring. That’s not a small amount and it’s easy to see why a lot of people balk at spending even more on jewelry insurance. But ask yourself: Do I really want to have to shell out the full $6k if something happens to that ring? (Spoiler alert: No. No you do not.)
So how much do specialized jewelry insurance policies cost each year/month? There is no “set in stone,” (get it? Stone?) answer, but there’s a general formula you can use to calculate the cost of a specialized jewelry insurance policy. On an annual basis, you can anticipate paying:
In real-life figures, this translates to an annual insurance premium of just $72–$144 on an engagement ring appraised at $6,000! This breaks down to approximately $6–$12 a month. We’re willing to bet that you spend more than that—maybe even triple that amount—just on your morning coffee!
You might wonder if a standalone jewelry insurance policy is worth the investment. Considering the world is an imperfect place and accidents happen all the time, we would say that absolutely, 100% it is worth it. Check out everything your Zillion jewelry insurance policy will cover:
(*We’re not actually sure about the whole giant lizard attack thing. That’s never happened and frankly, we hope it never does.)
One of the benefits of purchasing a Zillion insurance policy is our claims process. The emotional stress of having lost or damaged your engagement ring is difficult enough. That’s why we’ve put so much effort into creating a stress-free claims process for our customers.
Here are a few more benefits of choosing Zillion to cover your jewelry:
Just like a home appraisal, a jewelry appraisal is an assessment of worth for a specific market on a specific date. This official document is written by a certified gemologist and will show, in detail, the value of your engagement ring. Your jewelry appraisal should include specification of how the values were determined. If those values are based on market research, the specific market should be noted. If the value is based only on the jewelers selling price, it’s not actually an appraisal.
A proper appraisal reflects an accurate value in comparison to the current market. In an appraisal, the price paid is not always a reflection of the item’s value. Many factors can affect a difference between paid price and value. (Example: Your item might have been purchased at a discounted price, which may make your appraisal higher than the price you paid.) Your appraisal is your written assurance of your item’s quality. It also serves as a detailed description to ensure your replacement engagement ring matches the quality of the original.
As much as we love online spaces, a jewelry appraisal must take place in-person to accurately examine gems, diamonds, and precious metals. Once your appraisal is complete, you’ll receive a document that outlines important information about your jewelry. A certified appraisal should include:
The detailed item description should include:
Note: If your appraiser is a GG (Graduate Gemologist) and a CGA (Certified Gemologist Appraiser): This is a thorough, detailed appraisal with warranties and reliable information—this protects the consumer. It guarantees that the item was inspected by the appraiser in person, describes the jewelry in precise language pertaining to gems, and uses internationally recognized grading scales.
A statement of value (SOV) is a detailed report that the jewelry purchaser submits to the insurer. The SOV cites, in detail, the piece of jewelry, provides a summary of its attributes, and states the worth—or value—of the item that needs insurance. Based on the statement of value, the insurer then bases the premium.
In order to avoid under or over-insuring the piece of jewelry, the SOV must be both comprehensive and accurate in its detail. We recommend that when it comes to a SOV, you consult with your jeweler (who would ideally be a Graduate Gemologist) about the true replacement value of your jewelry. (This will be used to set a limit of insurance on the policy.)
At Zillion, we accept a SOV in lieu of an appraisal unless the item is unique, vintage, or high dollar amount—and as long as the following items are included:
The name and address of the owner.
When taking the place of an appraisal, a detailed receipt helps an insurer identify the jewelry item, ownership, place of purchase, and purchase price. The receipt must contain the following five pieces of information:
DISCLAIMER: This article was written for general information purposes only and is not intended to represent a legal insurance contract or a statement of official claim settlement practices. Insurance policies, loss occurrences and claim settlements vary. For specific details regarding your jewelry insurance, its coverage, exclusions and conditions, please refer to your policy or ask your licensed insurance agent for details.