How To Get Your Engagement Ring Properly Insured

Engagement rings may no longer be required to cost three months' worth of income, but they are still pretty expensive. It might be the last thing on your mind when you got engaged, but just like any other forms of valuables, financial protection is called for in case something bad happens to it.

"People often make the mistake in thinking that an engagement ring is automatically insured under a homeowners policy," says Jerry Ehrenwald, president and CEO of the International Gemological Institute. "However, many policies only provide limited coverage, which could leave you footing the bill — or a big chunk of it — if you need to replace an expensive item." Every couple should consider a insurance policy appropriate for their ring. Read on for all the essential tips you need to know to get started.

Determine the type of coverage you actually need: Most homeowners policy will only cover a maximum of $1,000 to $2,500 for personal jewelry, which might work if your ring cost was on the lower end of the spectrum. However, if your ring had a much higher value than that, the smart thing to do is to get an extension — also known as a "rider" — that specifically provides coverage for your ring. Give your home insurance provider a call to figure out the personal property limit, and the type of rider available to you.

A receipt for your ring is required by the insurance provider, and you'll also need to get a jewelry appraisal to determine the real value of your ring. Check your insurance company's guidelines to make sure that the type of appraisal you're paying for fits the requirements. The American Gem Society has an online directory for the appraisers in your area. Expect to fork over $50 to $100 an hour for this service, based on an estimate listed on Jewelers Mutual.

Engagement ring insurance plans work on an annual basis, and according to Investopedia, you'll be paying $1 to $2 for every $100 the ring is worth. The number fluctuates according to where you're based: You'll be expected to pay more for your coverage for places with higher theft rates.

As with all insurance policies, it's important to read the policies thoroughly and evaluate whether they fit your specific needs. Some riders will cover accidental loss, while others won't account for other damage beyond theft or loss. Another important answer to get on paper: What counts as sufficient proof that your ring is gone and will need to be replaced. If you want a more tailored plan for your piece of bling, consider going to a company that specialize in jewelry insurance, such as GemSafe.