The Ultimate Guide To Buying

Engagement Ring Insurance

Everything you need to know about protecting your engagement ring from loss, theft, accidental damage & more!

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
 

Who Sells Engagement Ring Insurance?

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.

Don't take our word for it though! See below for a comprehensive break down of the pros and cons of both options.

 
 

Standalone Jewelry Insurance

Option 1

Insuring Your Engagement Ring

 

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.

  • A quick, easy, hassle-free claims process.

  • Policies with a $0 deductible.

  • Free shipping on repairs.

  • Full transparency. (Meaning there are no hidden fees—what you see is what you get!)

  • A 30-day satisfaction guarantee.

  • ZERO impact claims—filing a claim will not negatively affect the rate on your policy. 


Get Protected Today with Zillion's No-Deductible Engagement Ring Insurance!

 
 

Option 2

Adding a Rider to an Existing Homeowners Policy

Insuring Your Engagement Ring

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:

 

  • There are often limits on coverage (yep, even after adding the rider!)

  • Premiums can be pricey

  • You may still have to pay a deductible before coverage kicks in

  • Filing a claim can actually have a negative impact on your policy, resulting in premium spikes and in some occurrences cancellation of the policy.

How Much Does Engagement Ring Insurance Cost?

Probably a lot less than you'd think!

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: 

 

  • 1-2% of the ring’s replacement cost or;

  • $1-$2 for every hundred dollars insured.

 

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! 

 

What's Covered Under a Policy?

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:

 

  • Accidental Loss: You’re on your honeymoon and your beautiful diamond engagement ring slips down the drain, never to be seen again. It’s sad, but your Zillion insurance policy covers the cost of a replacement ring.

  • Theft: Your home was broken into and your wedding ring was stolen. Guess what? Your jewelry insurance policy covers the cost of replacing that, too.

  • Disappearance: You, er, actually don’t know what happened to your engagement ring. Surely my Zillion policy won’t cover that, right? Wrong—your ring is covered even if you don’t know what happened to it.

  • Accidental Damage: The diamond on your wedding ring was chipped after some home improvements; your gold band bent during a fall; the entire gem popped out of the setting due to an accident—all of this is covered under your Zillion insurance policy.

  • Fires, Floods, Hurricanes, Tornadoes, Godzilla Attacks*: If your ring is lost/damaged during a natural disaster, Zillion’s got your back. We’ll cover the cost of a replacement or repair.

 

(*We’re not actually sure about the whole giant lizard attack thing. That’s never happened and frankly, we hope it never does.)
 

What's Not Covered?
 

We’re proud to cover most things you can think of, but there are some exceptions. Common insurance policy exclusions include losses or damage caused by wear and tear (like over time your ring develops gouges or discoloration), deterioration or defect, intentional acts (you can’t take a hammer to a ring and then file a claim for the damage!), voluntary parting (meaning, you give the ring back to the person who gave it to you, or you put it up for sale in a pawn shop), war, nuclear hazard, or civil authority (Civil authority means that a government entity denies or prevents access to your ring).

 
 

What Happens if My Engagement Ring is Lost, Stolen, or Damaged?

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: 
 

  • Speedy Claims Process: Our online claims process eliminates the need for paperwork, slashing the claims process considerably.

  • No Deductible: Yep, you read that right. Zillion insurance policies come with $0 deductible replacement costs. The end. Nothing else! We don’t want to add financial stress on top of an already stressful time.

  • No Rate Hikes: When you file a claim with Zillion, it will not negatively affect your insurance policy rate.

 

 

     Other commonly asked insurance claims questions

 
 
  • If my ring is lost, stolen, or disappears, what documentation do I need to provide when filing a claim?  Losing your ring is stressful enough, so we try to require as little documentation as possible. If your ring is lost or stolen, you’ll report the incident on our website’s “Claims” section. Make sure to include a detailed description of the circumstances. In the event of theft, you will also need to report the incident to the police and forward a copy of the police report to us at Zillion.

  • If i file a claim will I receive a cash payout? Our claim settlement is on a repair or replacement basis. Unless there are circumstances that prevent us from repairing or replacing a jewelry item, we do not offer cash settlements.

  • If a replacement is necessary, will I need to purchase my replacement ring from my original jeweler? We believe that your original jeweler knows your jewelry best, and can replace it more quickly—and to the exact specifications—than other jewelers. Unless there are unique circumstances or if you wish for another jeweler to replace your engagement ring, Zillion will coordinate the replacement with your original jeweler.

  • What if I have a vintage ring that cannot easily be replaced? We always look to replace a ring with its like kind, but there are rare occasions when we cannot find a suitable replacement. In this case, we may settle a claim based on the actual cash value of the jewelry.

Do I Need Any Specific Documents to Purchase an Engagement Ring Insurance Policy?

 

Whether you decide to add your engagement ring to an existing insurance policy or purchase a standalone coverage option, you will need to provide documentation to an insurance provider so they can properly assess the value of your ring, verify your ownership, and its place of purchase or appraisal in order to provide a premium for your jewelry insurance policy.  The good news is that if you’ve purchased your engagement ring from one of our retail jewelry partners, we do the heavy lifting for you and through our technology integration get what we need directly from the jeweler. Easy is good!
 

Here at Zillion, any one of the following three options will do:

1. Jewelry Appraisal


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:

  • Your Name
  • Address
  • Detailed description of the item
  • Assessment of the item’s quality
  • An assigned value
The detailed item description should include:
  • All of the item’s characteristics including grades, weights, and measurements, materials, and markings.
  • Subjective features like the quality of the gemstone, relative rarity, and overall quality of the item’s construction.
  • Treatments given to the gem that aren’t part of typical gemstone processing; or stating the gem is untreated.
  • Whether the gem is lab grown or natural.
  • States the gem’s manufacturer and workmanship
  • The mounting’s metal and karatage.
  • The jewelry’s value.
  • A photograph of the gem.
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.




2. Statement of Value


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.

  • A description of the item detailed enough so that the item can be replaced in the event of a loss.
  • The estimated value of each item. (Not the same thing as the price paid.)
  • The name of the company or individual providing the SOV.
  • A date and signature.




3. Detailed Receipt


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:

  • The Purchaser’s Name: The name of the person who made the purchase
  • Jeweler or Jewelry Store Name: The provider that delivered the service or where the item was purchased.
  • Date of Purchase: The date the item was purchased.
  • Jewelry Type: A detailed description of the jewelry item(s) purchased
  • Cost: The amount paid for the jewelry item





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.

 
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© 2020 by Zillion Insurance Services, Inc. 
3000 El Camino Real, Bldg. 4, Suite 200

Palo Alto, CA 94306