Get the ring insured
Sifting through ring insurance options could seem a little unnerving for brides- and grooms-to-be—or perhaps the furthest thing from their minds, considering the other ‘to-dos’ on their wedding checklists. While couples may not be able to control all aspects of their weddings, they are able to apply for insurance immediately.
Typical insurance options include adding it to home or rental policies via a specific rider or floater, or applying for a new policy with a specialty insurance company. However, home or rental policies may have limits to their coverage or include limitations on how claims are handled.
For example, covered perils typically include fire and theft. Coverage for lost jewellery items (e.g. dropping it down the drain or hitting the diamond and cracking it) would not be covered. Your customers should speak with their insurance provider to ensure they have appropriate coverage.
Standard jewellery coverage on a homeowners’ policy almost always has a monetary reimbursement limit, generally in the ballpark of $1500. Considering the average cost of an engagement ring is nearing $6000, there’s no way your customer could replace it with the small allowance afforded from standard homeowners’ coverage.
Customers could also explore adding a jewellery rider or floater to their homeowners’ policy; it’s definitely a step up from general coverage. Their coverage limit should increase with this option, though it still may not be the full replacement amount. The types of losses covered should broaden with a rider or floater as well.
Depending on the policy, your customer’s new purchase could now be protected against accidental losses, too. Advise them to check for unexplained or mysterious disappearance coverage.
Specialty jewellery insurance is a standalone policy specifically created to protect jewellery from the unexpected—loss, theft, damage, or even mysterious disappearance—and provides an extra level of protection. It typically costs one to two per cent of the value of the jewellery (depending on location), paid once per year.
