If you have homeowner’s or renter’s insurance, it will most likely include the insurance of all your personal properties that are inside the house. That includes your engagement ring and other jeweleries. The bad news is that it has a very low limit as to how much it will cover.
The most common cap is $1,000.
If your engagement ring and other personal properties are worth more than that, then it’s time to look for engagement ring insurance companies.
Before we go to different companies worth contacting, below are some things you need to consider when looking for insurance for engagement ring.
Things to Consider When Buying Engagement Ring Insurance
1) Will they insure in actual value? Many insurance companies will only insure a portion of the actual value of your property but some companies consider that jewelleries appreciate in value so they pay for the value of the jewellery when it is appraised. That means you will have to get your ring appraised every year, too. Ergo, your premium might have to increase every year.
2) Like in real properties, not all causes of damage or loss are covered. What if it falls into a ditch while you were picking up a coin from the floor? What if you lost it even before you give it to your future bride? What if a dog eats it? Ask what circumstances is included and excluded in the coverage.
3) What if the value of your gem shoots up overnight and you lost it before you have it re-appraise, how will your insurance company deal with it?
4) What if your appraiser gives a higher appraisal to the value of your jewellery than theirs?
Possible Engagement Ring Insurance Claims
Below are some situations that you would want to include in your insurance:
1) Theft – this should include theft of your home, hotel rooms, cars, and other places. Remember that you bring your engagement rings even when you go out of town on vacations. You also leave your jewelleries in your hotel room. What if someone breaks in your hotel room? Try to get a blanket theft claim.
2) Loss – as unthinkable as it may seem, more than half of insurance claims on engagement rings state “misplaced” as a cause. It is possible for you to forget where you put your engagement ring so include that in your insurance. Get a blanket insurance for all possible causes of loss.
3) Damage – the stone could fall off. Yes, it could happen and it has happened to many other engagement ring owners. They also dent, scratch or just permanently damage their rings.
Different Engagement Ring Insurance Companies
Jewelers Mutual Insurance Company
Jewelleries Mutual Insurance Company is one of the few insurance companies that specialize in insuring jewelleries. That means they provide a lot of benefits that are not offered by other companies.
Company Background: The company has been around for more than 100 years. The stability of the company is very good. They accept private individuals, companies, and government clients. They insurance coverage include:
2) Custom design
Advantages: They specialize in jewellery insurance. That makes them more flexible in their terms. They can custom design programs for your needs.
Disadvantages: They cover the whole of U.S. and Canada except Quebec.
Jewelers Mutual Insurance Company
24 Jewelers Park Drive
Neenah, Wisconsin 54956
Local number: 920-725-4326
JIBNA (Jewelry Insurance Brokerage of North America)
Company Background: JIBNA is NOT an insurance company. They are underwriting managers which means they are the ones who performer certain things for insurance companies like designing specific plans for customers, process claims. They are your brokers to insurance companies.
Advantages: JIBNA has Scheduled Jewellery Insurance. This kind of insurance covers “floaters” or items that are not included in the homeowner’s insurance policy. Scheduled jewelry insurance has broad coverage especially when it comes to engagement rings. The limits are also higher and it’s easy to custom design policies according to what you want.
Under this policy, you may get a replacement, get a repair or just get cash in exchange of your damaged or lost engagement ring.
JIBNA also has standalone Personal Jewellery Insurance. In simpler terms, this kind of insurance is independent of any other insurance. It makes claims faster.
Disadvantages: As previously mentioned, JIBNA is not an insurance company. They are brokers. That means you will also pay them a certain amount for “handling and managing” your insurance for you.
455 S. 4th Street, Suite 1152
Louisville, KY 40202
3345 Grand Ave. #4,
Oakland, CA 94610
Perfect Circle Advantages
Perfect Circle is one of the most recommended personal insurance companies. They are partners with Jewelers Mutual. Their coverage includes all personal items including paints, sculptures, and even clothes. However, they do have some things that other companies don’t offer.
Company Background: Perfect Ciricle is owned by Blue Nile, a company that insures all kinds of personal items. However, Blue Nile created Perfect Circle to specifically deal with jewelleries. Perfect Circle is the one in partnership with Jewelers Mutual.
Advantages: Some reasons to go for Perfect Circle include:
1) It doesn’t matter where you lost or damage your engagement ring, they will cover it.
2) You can choose your own appraiser.
3) They employ a professional gemologist.
Disadvantages: The mutual company is actually owned by policyholders. That means that the money paid by policyholders is the money that runs the company. They don’t have stockholders. It only means that when something goes wrong, they don’t have financial backing. They are dependent on the money that comes in through their sales.
Chubb Personal Insurance
Chubb Personal Insurance specialize in personal insurance, this includes cars, artworks, and other personal possessions.
Company Background: They used to be an underwriting company. They are now a multi-billion company that insures some of the most expensive possession such as personal planes and boats.
Advantages: They offer a lot of policy options including:
1) Good Valuable Articles Insurance – they have special coverage for items that are unusual but valuable. If your engagement ring uses a rare kind of stone, they can draw an insurance policy specifically for that.
2) Blanket coverage – You may opt to do a blanket reason for loss or damage instead of being specific.
3) Item by Item – If you have pieces of jewelleries that are specifically valuable, you may opt to get an insurance for that item only.
4) Specially Valuable items - If you have pieces of jewelleries that are specifically valuable, you may opt to get an insurance for that item only.
5) Value is Settled in Advance – You will know how much you will get upon signing of the insurance not after the accident, loss or damage.
6) Pairs and Sets – If you have sets or pairs, you may get claims even if only a piece of the pair or set gets lost.
Disadvantages: The company website is rather slow and the navigation is poor. It doesn’t really guide you towards getting more information about their policies. The main menu doesn’t really tell you what kinds of policies they have or what sets their company apart from others
15 Mountain View Road
Warren, NJ 07059
Telephone: (908) 903-2000
Fax: (908) 903-2027