Insuring your Engagement Ring. Is it worth it?
Getting engaged is an exciting time for couples and with it comes a sparkling diamond on your left hand. Whilst it’s most likely that last thing on your mind, insuring your ring can be one of the best decisions you can make. Just think about it for a moment, what happens if your engagement ring gets damaged? Or worse yet, lost or stolen? Losing that beautiful diamond is a devastating experience considering its symbolic value to you and your partner.
Irrespective of whether you have accidentally left the ring behind at the beach, lost a stone whilst doing some exercise or the ring has been stolen protecting yourself from the heartbreak with insurance can soften the emotional blow. Insuring your engagement ring ensures that you will enjoy your ring for many years to come no matter what happens. Here are some tips for readers looking to insure their precious ring.
DON’T WAIT TOO LONG
Look at an engagement ring like any other asset that you insure. There is no reason why you shouldn’t insure the engagement ring as soon as you have purchased it and it’s in your possession. Whilst you may not think something can happen as soon as you purchase the ring, the sooner its insured, the sooner you are protected.
Generally speaking, you have two ways to insure your ring. Firstly, most home and contents or rental insurance will have options available for insuring an engagement ring specifically. Alternatively, certain insurers will offer a policy that offers jewellery insurance specifically should you wish to independently insure the ring and not raise any suspicion with your partner.
KNOW HOW INSURERS EVALUATE THE PRICE OF THE ENGAGEMENT RING
There are several factors that contribute to the evaluation of your ring such as where you live, theft rates in the area. Also look to see if there is an annual revaluation at no additional cost as well as what excess you are liable to pay when you need to make a claim.
QUESTIONS TO ASK YOUR POTENTIAL INSURER
What will you need to do to prove when making a claim?
What are the circumstances where you are not covered?
Does the insurance cover you internationally?
Is the insurance for damage as well as loss or theft?
Can you choose who repairs the engagement ring?
Can you choose where you purchase the replacement ring from?
What happens if a suitable replacement cannot be found?
GETTING AN APPRAISAL
Without knowing the market value of the ring you can’t protect it. A thorough appraisal will include an assessment of the carat weight, clarity, colour and cut of the diamonds as well as any additional stones that form part of the engagement ring. Depending on the insurer, some will require an independent appraisal. On the other hand some insurers will accept a receipt of purchase. Quite often the prospective market value of the ring will determine whether a closer appraisal is required or an invoice will suffice.
GET A DIAMOND CERTIFICATE
Certain diamond jewellers will provide a diamond certificate or a grading report from an independent laboratory such as the GIA. These reports often cover the 4C’s which are used to evaluate the diamonds by assessing the colour, clarity, cut and carat weight. These measurements will help assist an appraiser accurately value the engagement ring. Whilst every diamond is unique, this information will also help with identifying potential replacements where claims involve lost or stolen engagement rings.
It’s fair to say that there are many appraisers out there who do not have the necessary credentials to properly appraise your diamond engagement ring. Having a person who holds a gemmology degree and is also a member of an appraisal association will instil you with confidence that the appraiser has the right credentials. Look to see if there are any reviews online to help ascertain the quality of the experience others have had with the appraiser.
REVALUE YOUR ENGAGEMENT RING
Having your engagement ring revalued every 2 years will ensure that the level of insurance adequately covers the market value of the ring. Since the value of diamonds generally tend to increase over time, there is a strong chance that the value of your ring has increased as well. If you had a good experience with your initial appraisal, return to the same person to ensure that there is consistency in the evaluation. This should help to also cut costs of the revaluation since the preliminary work was done by the appraiser when the first valuation occurred.
Need help finding the ideal engagement ring?
Our friendly sales team have many years of experience and can help you find the perfect ring for your loved one. Simply visit our SH Showroom in Springvale and take advantage of a free consultation to discuss your jewellery and diamond requirements. However, so that we can better serve you, we recommend that you book an appointment for your consultation, especially for weekend times.