Part 1: Evaluating and Documenting Your Ring
1. Find a local jeweler to do an appraisal. Nearly all
independent jewelers will offer appraisal services. Ask friends and
family for recommendations, search for listings of accredited and
certified jewelry appraisers in your area, or simply look for online
reviews to find a jeweler that is well respected and professional.
- Nearly any appraisal services will be done for a small fee. Usually, the fee will be under $50, but it can vary depending on the ring and the area where you live.
- You will be giving your ring to the appraiser for inspection, so make sure that this person has professional credentials and that he or she has been educated in appraising jewelry.
- Usually, you cannot insure an engagement ring without an appraisal
because insurance companies do not want to rely on you to set the value
of the item to be insured. Appraisers, on the other hand, have to stick
to the Uniform Standards of Professional Appraisal Practice, which
requires that professional appraisers give you a fair appraised value
for your jewelry, so they are trusted by insurance companies.
2. Get an appraisal of your ring.
The jeweler will appraise your ring by inspecting the stones, as well
as the setting. A good appraisal will take a variety of factors into
considerations, including carat weight, the color of the stones, the cut
of the stones, the metal type, and any markings, in addition to other
factors.
- When the appraisal is finished the shop will get back to you with a concrete value for your piece of jewelry. You should receive a formal document from the appraiser that you can use to insure your engagement ring.
- Additionally, if you have a larger or higher value ring, you may have received a GIA certificate, or some other official certification, with your ring. This type of certification is not an appraisal, but is accepted as one by many insurance companies. Ask the company you choose whether they will accept certification instead of an actual appraisal.
3. Take photos of the ring to keep with your documentation.
Lots of experts recommend taking a set of photos because they can
further document what you own. Remember to keep one set of photos with
your own documentation and send another set to the insurance company
when you get your insurance policy.
Part 2: Insuring Your Ring
1. Find out if an existing homeowners or rental insurance policy will cover your engagement ring. Usually, the easiest place to insure your ring is through the company
that provides your homeowners or renters insurance. Call your insurer,
and ask them about adding your engagement ring to the policy.
- Usually, high price items such as engagement rings are insured through a “rider” added on to your homeowners or renters policy. With a “rider,” insurance coverage is specifically assigned to the high priced item.
- If you insure your ring with a rider that is added to a current policy, make sure that the coverage is as complete as you want it to be.
2. Buy a separate insurance policy. If your ring isn’t,
or can't, be covered under an existing homeowners or rental insurance
policy, you will need to find an alternative policy. Contact a jewelry
insurance representative to get information on rates to insure based on
the ring's value. You can find listings for representatives online or in
your local telephone directory.
- The information you receive should show you where to send your appraisal and include all of the specific limitations or conditions for coverage.
- Additionally, some people prefer to get a referral to an insurance company from the store that they buy the ring from, to ensure they insure the ring through a recommended company.
3. Ask questions to make sure that you are getting the coverage you want.
Because insurance policies vary dramatically, you should make sure that
you ask questions and completely understand the parameters of your
policy. For example, you should always ask what types of loss does the
policy covers. Does it include accidental loss or damage, or only theft?
- You will also want to ask about how a lost or stolen ring will be replaced and if there are circumstances when the ring will not be insured. Will you be paid for the value of the ring in cash or will you need to order a replacement through a jeweler that is specified by the insurance company.
- You should even know how you will document that your ring is lost, stolen, or damaged. The insurance company will have very specific steps that you will need to go through to make a claim.
4. Choose a deductible. The deductible is the amount
that you will pay to replace the ring before the insurer picks up the
tab for the rest. Most jewelry insurers offer a range of deductibles
when you insure your engagement ring. A higher deductible will lead to a
lower annual insurance premium.
- A good rule of thumb to keep in mind when estimating your costs is that you can expect to pay around 1-2 dollars for every $100 your ring would cost to replace. This can vary based on the type of policy you choose.
5. Send the appraisal, with the photos and any other paperwork, to the insurance company.
They will send you your policy once the paperwork is processed. Keep
your policy on hand to be sure that in any unfortunate event, where the
ring is lost or damaged, you will not lose the value of your investment.
- Additionally, some companies could have other instructions or requirements for making claims included with the policy paperwork, so make sure to become familiar with your insurance company’s policies.