In this article I am going to explain why you should insure your engagement ring and I will also introduce the different types of insurance couples can expect to find when shopping around for engagement ring insurance.It is often the last thing a couple considers when they buy an engagement ring and many don’t even factor it in the to the overall cost of the purchase. Even a greater number of people don’t get insurance for their engagement ring, even though they definitely would get insurance for their car or house. Honestly it does not make much sense. The main problem is that an engagement ring is a very emotional purchase, it is an investment in your love to another person, however many do not realize that it is also a financial investment. Some engagement rings cost more than a house or a car, the average engagement ring cost is between 2000 to 4000 dollars which is actually a lot! Unlike a car however, an engagement ring normally will appreciate in value after you purchase it, as long as nothing bad happens and this is where insurance is important.
Accidents can happen!
Damage
Caring for your engagement ring is extremely important because rings can be easily damaged while doing the most mundane things. Household chores can easily lead to engagement ring damage, some of the most common household cleaning chemicals can damage a ring easily. When cleaning your ring you could also make the mistake of using a chemical which does not react well with it and thousands of dollars could be gone just like that.
Theft
What if someone steals your ring? There is a reason pawn shops are so jam packed with engagement rings, although many are genuinely sold off by families who need the money, many are sold after theft. Engagement rings are such an emotional issue, that questions are hardly ever asked. Another important reason why engagement ring insurance is so important.
Loss
Have you ever lost a mobile phone or your wallet? What makes you think that you won’t lose a 5000 dollar engagement ring too? I have heard about people leaving them in hotels, losing them in pools or down the kitchen sink. Although you might be a careful person, even the best of us lose something from time to time.
What types of engagement ring insurance are available?
Homeowner insurance
If you own your own home you will probably have a homeowner insurance policy, the policy is likely to allow you to add valuables on to it too. This is an option for people worried about losing their possessions in fire or natural disaster, but it will not cover loss, theft and other smaller damage which is more likely to happen to engagement rings. For that you will need something more specific
Actual Value engagement ring Insurance
One type of insurance which you can purchase is actual value insurance, it is the cash value of the engagement ring upon original purchase, minus cost of use. This type of engagement ring insurance is the least expensive and easiest to do. In my opinion it has some drawbacks however, if the ring were to appreciate significantly in value after a few years, you would not get them money for that. It is likely then that the cash given to you will not be enough to even afford the original ring you bought. However, something is always better than nothing.
Replacement insurance
Simply put, if your ring is damaged, gets lost or gets stolen then the insurance company will replace your ring with one which is identical to the original. This can be great if you ring has appreciated in price, because you are making a profit from it. Even If the ring decreased in value you would still get it back exactly as it was. Thus this engagement ring insurance is obviously going to be more expensive than an actual value replacement.
Valued at insurance
If you think your engagement ring is worth a certain value, financial plus sentimental, then you can insure it for whatever value you think it is worth. This is going to be really expensive though and it is only advisable for people with something extremely valuable.
