If you have an expensive wedding ring, you might consider buying wedding ring insurance. The question came to me after our friend put her hand in our van door as it was closing. Don’t worry…the van door is fine. The ring and her finger were another story…..
What risks do you face?
Before we go much further, let me go on the record to implore you to do your best to reduce ring prices by buying smart. But if you don’t head my call, you will learn that wedding ring prices can be ridiculously high. If you spend that kind of dough on a rock, you want to protect it. Diamonds are pretty sturdy of course but if you wear it every day your ring suffers wear and tear. Over time, the stones can come loose. If you are an active person, you might get it banged up – or even caught in a car door. Even if you only bang it gently on a coffee table, over time, with enough bangs, the stone might come loose from the setting. The next thing you know, you’re on the floor searching frantically …for several hours.
Other risks include swimming. You might get into some cold water. If your finger shrinks, the ring might slip off. Then what?
Do you need to buy coverage?
In most cases, probably not. If you have homeowners insurance you may already be covered. Call your agent to find out.
I bought a nice watch several years ago and I found it wasn’t covered. I had to buy a jewelry rider and you can do the same thing. This is a rider that specifies specific items and provides coverage for them. You’ll have to provide the receipt showing what you paid for the ring and provide an appraisal.
What You Should Clarify
You want good solid coverage if you’ve spent a great deal on a ring. Make sure the policy covers the ring if it’s lost or stolen. Find out how the ring is replaced. Will you be forced to buy a new ring from a jeweler of their choice? If your ring is a specialty item, how will that be handled? Is the insurance amount reduced over time or do you get the full insured value regardless of when the covered event occurs? How will you be asked to prove you lost the ring? Are there any losses that aren’t covered?
The cost of wedding ring insurance.
Depending on where you live, the cost is going to be $1 to $2 for every $100 of ring value. So if you buy a $5000 ring (please don’t because you’ll give me a headache) you’ll pay anywhere from $50 to $100 a year in ring insurance premium.
After you read the fine print of your home insurance policy, you might not like the terms. If that’s the case, shop for stand-alone ring insurance. You can even call the jeweler who sold you the ring or any local jeweler. The cost will likely be similar but the terms might be very different. It never hurts to check.
The best idea?
Don’t spend your hard earned money on a small rock — it’s not the best investment you could make. You’ll save on insurance costs and you can invest that money instead to help build a future for you and your spouse. That’s my stand. And while you’re at it, do your best to save on your wedding. That’s another smart move. What’s your sense on the issue of weddings and wedding ring prices?