It’s Valentine’s Day and you’re ready to pop the big question! From the moment your partner says “yes”, they’ll likely be in the possession of a shiny new ring. In Canada, the average cost of an engagement ring is $3,500. That’s no small purchase. Not only is your new engagement ring a symbol of your many happy years to come, but it’s a huge investment. Insurance might not be the thing to cross your mind when you propose but at some point, you will need to consider the responsibility of getting your shiny new rock insured.
When it comes to insuring a high-value item like an engagement ring, you have one of two options. You can either insure your engagement ring via what is known as a Jewelry Floater, or you can insure it with a Jewelry Blanket. Here’s the difference:
Jewelry Floater
A Jewelry Floater should be considered if the items you are looking to insure may exceed an ordinary Jewelry Blanket’s limit, or if you own multiple high-value items that you want covered for more than just common perils. Jewelry Floaters may also be referred to as Scheduled Coverage, as the policy will name or “schedule” the item being insured and will typically require an appraisal to estimate a sufficient amount of coverage.
Jewelry Blanket
A Jewelry Blanket permits you to insure your jewelry for a dollar amount of coverage. This means that your engagement ring will be insured separate from the rest of your personal property. Blanket is an insurance term that means “one set amount” and can add a layer of protection beyond your typical personal property for expensive dinnerware, electronics, and, yes, your engagement ring.
How to Keep Your New Engagement Ring Safe & How to Store
An engagement ring is no small trinket. When it’s not being worn, you’ll want to ensure that it’s looked after and stored properly. Consider these tips for keeping your engagement ring safe and secure:
- Avoid taking off your ring in public, even when you’re washing your hands.
- Keep it clean. You can send it to an expert jeweller to have it steam-cleaned.
- Remove your ring during handy-heavy activities.
- Keep ring dishes around the house to avoid losing it.
- Check for loose prongs to ensure your diamond doesn’t go astray. Most claims are for lost diamonds!
As for storage, consider the following tips:
- Use a fabric pouch. Pouches should be made of soft material in an individual bag.
- Use its original box.
- Store the box in a private location and use a safe if you have one.
- Consider renting a safety deposit box at your local bank. It’s extremely safe and very affordable.
If you can, avoid storing your engagement ring in your pocket, in a public locker, or on top of any surface both in your home and outside where it can be knocked off and easily lost.
As an added note, when you first purchase your engagement ring, it isn’t a bad idea to have it appraised by a professional and document your new engagement ring as best as you can. Keep the receipt and take photos. If something happens and your engagement ring is damaged or lost, you can show these documents to your insurance company. Proper documentation helps to expedite the claims process and will help you get your settlement faster and painlessly.
Frequently Asked Questions: Jewelry Insurance
Insurance can be complicated, but it’s always important to ensure you and your partner’s peace of mind. Here are a few frequently asked questions about jewelry insurance.
How do you insure your engagement ring if you and your partner live separately?
If you’ve recently gotten engaged to your partner but aren’t living together yet, you may insure the engagement ring under a single individual’s property policy. Typically, that would be the person who is wearing the engagement ring and/or is in possession of it. If you have plans to move in together after you are married, then you’ll need to call your home insurance or renter insurance company to update your policy with the current address.
Why do I need to get an appraisal?
An appraisal is good to have to estimate the total worth of your engagement ring, its replacement value, and to add it to your list of contents. A professional (GIA) appraisal will examine the cut, colour, metal type, and carat weight of your new engagement ring. They will typically charge a fee, but it’s only a small cost next to the total price of your new jewelry. An appraisal can help insurance companies accurately insure against misplacement, damages, and theft. It’s a good idea to have the ring reappraised every few years, typically through the original appraiser.
When should I insure my engagement ring?
The best time to insure an engagement ring is as soon as it has been purchased. Once you have purchased your ring, you can shop around for insurance and determine what form of coverage is your best option. If you’re not sure, you can discuss with an insurance expert, like the advisors at LMBF.
A proposal is one of those moments in your life that you will never forget. If you’re thinking about getting engaged or you’ve recently popped the question, consider the important details about insuring your engagement ring. Happy Valentine’s Day!
